What Is Delivery Management and How to Manage It Successfully?
Delivery management can be improved if it is not perfect. This could result in more on-time deliveries and higher revenue for your business. But, delivery service providers are limited in what they can do by working manually. Software is the solution.
The right delivery management software can help you streamline your delivery processes and reap the financial and time-based benefits that go with an optimized business.
Delivery management is simple when you use the right software–OptimoRoute.
What Is Delivery Management?
Delivery management is also known as fleet management or dispatching. It is a type of project management in the goal is to get products from one place to another on time and without any damage.
Delivery managers are usually assigned to small business delivery services. They keep track of all delivery processes. They are also the contact point between the warehouse and the customer. Larger companies may have one fleet manager who is responsible for all aspects of delivery, including resolving delays and completing orders.
Delivery businesses need this position to be efficient and organized. The fleet manager streamlines delivery and allows the business to scale up or deliver its current deliveries on time. A successful delivery management system is made up of many parts that can lead to increased income for the business.
Four components of delivery management
Delivering management consists of four major tasks that must all be completed successfully if companies want to succeed. To achieve better results and greater process efficiency
1. Route planning and optimization
Route planning involves organizing deliveries and directing trucks as to which deliveries they should make in what order. Route optimization optimizes this by optimizing the use of resources, including gas and time between stops.
This can be done manually but it will not result in an optimized schedule. Optimization takes into consideration many factors such as delivery windows, driver hours and geofencing restrictions, package priority, traffic, breaks, and possible delays.
2. Driver scheduling
Driver scheduling ensures that each driver has a truck and a route for the day. This involves organizing and managing a driver list and their availability. Next, match the truck’s route based on metrics such as the driver’s skill and expected route complexity. You must be able to understand both the individual limitations of each driver (when they can work) as well as the overall limitations of your company (laws regarding work hours).
Dispatching (also known as dispatch management) involves daily communication with drivers to ensure they know the route they are taking and what packages they should bring. Dispatchers are often able to resolve delays that arise at the last moment while drivers are out.
Small businesses can do this 100% manually by calling, emailing, and texting drivers and customers. Larger companies, however, can’t maintain this level of communication because of the sheer volume of deliveries and drivers. Automated software can automate large-scale dispatching, allowing fleet managers to focus on more important tasks.
4. Vehicle tracking
You can track your vehicles using vehicle tracking software to get a better idea of how your resources are being allocated. You can also see who is punctual, who might have to wait, and which drivers need additional training. It’s possible to make changes on the fly if you need to deliver a package or pick up a driver right away by knowing where they are.
Three Benefits of Successful Delivery Management
You can see the benefits of incorporating delivery management into your fleet operations.
1. Complete more deliveries
If your routes are optimized, you can take on more deliveries–increasing your bottom line. Routes that aren’t optimized have longer delivery times, which allows for more trucks per driver. You can achieve better delivery management by taking into account factors such as traffic and consumer expectations. Also, you can incorporate time tracking for drivers to help them complete more deliveries.
2. Save time and fuel
last mile delivery’s goal is to get your product to the customer as quickly as possible using optimized delivery management. This includes reducing fuel consumption and the time it takes to deliver the product. It’s also beneficial for the business to get the product to customers faster. You will save money on fuel and be more efficient if you drive less. You’ll also see time savings, further improving your bottom line.
3. Improve delivery accuracy
Optimize your routes for a better understanding of when packages will arrive and increase delivery accuracy. Successful delivery management considers about traffic, worker schedules and required breaks, and possible delays that could arise during the route.