In Last-Mile
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3 Ways Geofencing Can Improve Last-Mile Delivery


ccording to Pitney Bowes’ recent BOXpoll survey, 64% of consumers, when asked how they want to receive their orders, said they prefer home delivery. With consumer demand for fast and reliable delivery service remaining strong, companies are implementing innovative tools to increase the efficiency of their last-mile delivery operations and gain a competitive advantage. Geofencing is a useful tool that allows companies to set virtual boundaries for geographical areas to match a predefined set of limits according to specific business needs. 

Geofencing is one of the most effective ways companies can capture important information and ensure deliveries arrive in a timely manner. Here’s a look at how geofencing can help companies manage their last-mile deliveries more effectively.

Increased Accuracy

Companies can leverage geofencing to gain accurate knowledge of drivers’ locations and behaviors to better assess delivery progress and driver performance. Restricting drivers from changing their status to “Arrived” when they are outside of the task radius maintains the accuracy of delivery status and improves accountability. When drivers are correctly tracked and dispatched within a specific area, deliveries are quicker and the area is more attentively covered.

On top of improving delivery efficiency, geofencing is crucial for establishing an accurate estimated time of arrival (ETA). Managers can trigger an ETA update to a customer when a driver has entered a predefined geofence. Providing customers with real-time ETAs is key to improving customer satisfaction and building trust. Customers trust delivery providers they can rely on. The more your customers trust you, the more likely they are to continue using your delivery service.

3 ways geofencing can improve last mile delivery
Geofencing allows companies to acutely assess driver performance and gain real-time insights into driver behavior leading to better decision making and route planning.

Real-Time Updates

Geofencing allows users to set up a virtual border that, once crossed, sends real-time text or email updates. Automatic updates can alert customers once a driver is close to their location. By setting up geofences, managers can be automatically notified if vehicles unexpectedly move outside of working hours, deviate from assigned routes, or enter restricted areas. Notifications can also be triggered when drivers travel outside of a geofenced location without closing a task first. Drivers can then be reminded to update their delivery status.

Better Driver Management

Geofencing allows companies to acutely assess driver performance and gain real-time insights into driver behavior leading to better decision making and route planning, which in turn helps managers determine efficient ways to route packages and deploy vehicles. Optimizing delivery routes through real-time tracking and guidance can help companies manage resources more effectively, and reduce delivery times and operational costs.

Geofencing makes it easier to monitor driver productivity. Delivery managers can easily verify that drivers are staying on task and meeting delivery requirements. Real-time visibility of driver movement, vehicle location, and how long a driver is outside a geofence can help companies identify unnecessary vehicle use and improve time management. Communication between drivers and managers can be streamlined through real-time notifications. Driver status can be automatically updated within the geofenced parameters and does not have to be updated manually.

Geofencing is a useful tool to set parameters for deliveries and track driver activity. Implementing geofencing can help businesses create more efficient delivery schedules and maximize their time and resources to improve the delivery experience.

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