The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
The COVID-19 pandemic has transformed consumers’ purchasing habits. It led to the accelerated adoption of online shopping and doorstep deliveries, which were already widely used by consumers. They enjoy the simplicity and speed of getting products delivered to their homes at their convenience.
According to the Accenture Holiday Shopping Survey, nearly 56% of consumers won’t purchase from a brand again following a poor shipping experience. They expect frictionless and timely deliveries with no additional costs. That, in turn, has made it crucial for retailers to enhance their last-mile delivery processes. A delivery management system (DMS) can help. But when it comes to implementing and using a DMS, failing to account for potential roadblocks could create unexpected problems.
Why DMS: An overview
It’s important to ensure a hassle-free purchase experience from start to finish for customers. But a recent study by SOTI, a provider of mobile and IoT management solutions, reveals that more than 60% of logistics companies consider last-mile delivery the most inefficient part of their supply chains.
So, how do you enhance the efficiency of last-mile deliveries without escalating costs? The key is to find and deploy a DMS that meets your needs and helps ensure glitch-free last-mile deliveries.
But there is more to installing a system and assuming it will work. Understanding the challenges of installation and implementation can help ensure your DMS does the job you need it to.
Failure to plan for future growth
Whether you’re running an online store or a traditional brick-and-mortar operation, a DMS with a handful of features, such as route planning and scheduling, should fit your needs. However, as your business grows and you start catering to more customers, the need for advanced features is likely to increase. If your current software doesn’t offer those features, you’ll have to look for additional tools or find a new DMS altogether.
You’ll likely have to expand your fleet and hire more drivers too. Additionally, if the DMS provider charges you on a per vehicle or per delivery basis, it’ll quickly escalate costs as you scale up.
So, it’s smarter to consider your plans for future expansion when you start considering the addition of a DMS to your operations. It’s a good idea to look for a scalable solution that can accommodate more customers and vehicles without boosting your costs. Also, be sure the selected DMS supports different business models.
Lack of integration
A DMS doesn’t function well in isolation. It should be compatible with your other technology applications, such as e-commerce platforms and CRM software. Without that ability to integrate, you’ll be forced to manually transfer data from these applications to the DMS. That can be time consuming, while leading to errors. Moreover, lack of integration makes it difficult to monitor and manage multiple orders.
No mobile support
Modern delivery management systems offer real-time updates and tracking, along with vehicle availability and routing. That, in turn, makes last-mile deliveries more efficient and transparent.
But such timely updates are futile if they aren’t available on smartphones or tablets. If your staff and customers don’t have the freedom to check the delivery status on the go, you could struggle to improve the last-mile delivery experience, even with the best DMS on the market. As such, it’s important to find a DMS that is mobile, to ensure easy access across different devices.
A steep learning curve
Even the most feature-rich DMS will fail to deliver desired results if users struggle to get the hang of the platform. A complex and difficult-to-use dashboard means your customers and employers won’t log in as often, defeating the purpose of your DMS.
So, it’s a good idea to analyze the learning curve while selecting a DMS. Ask the software provider for a free trial or demo to assess customizability and user-friendliness. Additionally, you should dedicate enough resources and time to onboard new users and train them on how to use various features.
About the author
Jay Sackos is a vice president at Dolly. Dolly provides nationwide same-day and scheduled delivery of items. It works with major retailers, small businesses and individuals to schedule and deliver purchased items.