Optimizing Logistics for Faster Holiday DeliveriesT
he holiday season is a challenging time for retailers as they navigate increased demand, strive to meet customer expectations, and adapt to the pressure to ensure timely deliveries. Today’s customers are accustomed to instant gratification, thanks largely to the rapid strides in digital technology and growth of last-mile delivery services. Speedy delivery has become a must-have for retailers and there are several ways they can optimize their logistics operations.
Here’s a look at some essential strategies for retailers to optimize logistics and provide a seamless delivery experience for customers during the holiday season.
Retailers and logistics companies are increasingly investing in automation in order to improve delivery performance, enhance operational efficiency, and increase accuracy. Investing in various tools including warehouse robotics, order management systems, and warehouse management solutions can help automate order processing, minimize manual errors, and increase delivery speed, saving companies time and money.
Ahead of this year’s holiday season, UPS and FedEx recently announced automation investments to help streamline their operations and deliver packages faster. Labor availability and constraints are the primary drivers for investing in automation. UPS plans to use automation to reduce nondriver headcount within its operations and lower labor costs. FedEx Ground is deploying technology company Berkshire Grey’s robotic product sortation and identification systems to sort small packages for daily operations.
Expand Your Delivery Operations
Retailers are expanding their last-mile delivery and fulfillment footprints in order to provide faster fulfillment and delivery services. Retailers can use underutilized space in their brick-and-mortar stores to prepare orders for delivery faster. Additionally, retailers are opening new fulfillment and delivery centers closer to customers to further their fulfillment capabilities, increase storage capacity, and shorten delivery times.
Amazon is opening two new state-of-the-art delivery stations in Connecticut ahead of the holiday season. Delivery stations serve as the last stop before Amazon packages arrive at customers’ doorsteps. Packages are shipped to a delivery station from neighboring Amazon fulfillment and sortation centers, loaded into delivery vehicles, and delivered to customers.
Digitize Delivery Management
Implementing digital solutions to optimize last-mile logistics and digitize delivery management processes can help improve delivery performance, maximize resources, and enhance the customer experience. Empowering customers with real-time tracking, updates, and the ability to communicate with delivery personnel can minimize missed deliveries. If a consumer knows exactly when their package will arrive, they’re more likely to be available to receive it.
Using route optimization software, delivery routes are mapped not just based on distance, but on additional factors including service area, delivery time-windows, driver availability, and priority orders. This allows drivers to take the quickest and most efficient route every time. For regions with high order volumes, consolidating deliveries, where multiple orders are delivered in a single trip, can be more efficient than individual deliveries. This approach not only reduces fuel costs and optimizes resource utilization, but also boosts delivery speed.
Optimizing logistics during the holiday season is a complex but vital undertaking for retailers. Not only does faster delivery mean happier customers, but it also translates to more efficient operations and increased profitability. By planning ahead, implementing new technologies, and expanding delivery capabilities, retailers can create fast and convenient delivery experiences.
For more information about how our delivery management solution can help you manage your deliveries more efficiently this holiday season, please contact firstname.lastname@example.org.