Logistics

Failed deliveries are the Achilles' heel of any company offering last-mile delivery services, and it's even the main problem.
Digitalization
The secret to reducing failed deliveries

Las failed deliveries They are the Achilles' heel of any company that offers last-mile delivery services and is even the main problem of companies that rely on logistics for the development of their commercial activity.

Logistic activities present great challenges but, without a doubt, the biggest of them all are failed deliveries. It is estimated that more than 1 in 10 deliveries are unsuccessful due, for the most part, to communication problems between customers and the delivery company.

Some of the most common situations in which failed deliveries occur and the origin of customer-company communication problems, according to the portal Eurosender are the absence of the recipient at the time of delivery, an incomplete or incorrect address or, even, problems accessing the recipient are some of the most common causes, among others.

The failed deliveries of Marcos, Silvia and César: a story of overcoming

As mentioned before, failed deliveries are a major challenge for many companies, not only those that focus their activities on the last mile but also for many others that rely on logistics for the success of their business.

Below we tell you the story of Marcos, Silvia and César. Three short stories that show the impact of failed deliveries on their daily activities and how they have been able to overcome them.

Marcos is a first-class chef

Marcos is the owner and chef of a centrally located restaurant in Madrid. Marcos is also responsible for making the inventory and receiving the daily merchandise for its elaborations. However, he also suffers from failed deliveries, since he told us that he had to change many dishes from his daily menu beforehand because the merchandise arrived late and without prior notice. This forced him to redo the menu at the last minute and adapt in record time, which has made him a first-class chef. Now, thanks to better planning and communication with their suppliers, their failed deliveries have been reduced by 97%.

Silvia's round numbers

Silvia is in charge of the logistics area of her company ecommerce, specialized in the last mile delivery of organic products. Before the incorporation of Silvia, her company had a 19% failed delivery rate, a very high cost for a small family business. As soon as Silvia joined the company, she could see the great challenge she was facing and looked for the main reasons why there were so many failed deliveries over the course of a single day and these were, in short, problems in communication between customer and delivery person. Now, Silvia has round the numbers, as the rate of failed deliveries has fallen to less than 4%.

César's customer satisfaction

Over the years, César has suffered from poor reviews about his company from customers who were dissatisfied with the services he offered. César had to find out what was the problem that most of his clients were facing and try to solve it quickly, in order to avoid the debacle of his company's image on the Internet. Over time, he was able to identify that he had communication problems with his customers, since they complained of not being notified when the service was performed (despite being carried out) or even of not having photographic evidence to verify that the service was being performed. César solved the problem as soon as he detected the problem and now has a better reputation and a score of 4.4 out of 5 in his company.

Marcos, Silvia, César and yours's solution for failed deliveries

As you can see, failed deliveries are a pending issue in many companies. A highly complex challenge within the logistics chain that leads us to prioritize knowing what its possible errors are and how to solve them. But what then is the solution? As any marriage therapist would also tell you... COMMUNICATION.

The stories of Marcos, Silvia and César are real stories of our clients who have sent us over the years and as a sign of gratitude.

Not having direct and effective communication with your customers and even with the drivers and delivery people themselves is one of the biggest mistakes in logistics.

Being able to enjoy direct and inattentive communication channels that allow customers to know when they will receive a package, to verify that a service has been carried out or what phase of operation it is in is key to effective deliveries and also to the satisfaction of all parties.

The transparency and effectiveness of the entire process is very important and both Marcos, Silvia and César know this. All of them were able to identify the problem their business had and found it in Routal Planner the solution. They saw Planner not only as an optimizer of delivery routes, but also as a platform for direct communication with their customers. Now all your customers have Information updated in real time in addition to also having delivery tests for the verification of the performance of the services.

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Learn about other effective methods to combat failed deliveries in our article “Optimize delivery management with proactive monitoring”.

The secret to reducing failed deliveries
Here are the logistical purposes you need to set for a successful 2022 for your company:
Logistics
The logistics purposes you need for 2022

The last days and the first days of the year are crucial in any area, both personally and in business. We take the opportunity to take stock of everything that happened in the previous year and, we also took the opportunity to set new resolutions for the following year, in order to improve and prosper in the nearest future.

At SmartMonkey we want to help you have a very prosperous and beneficial next year for you and, therefore, we are going to help you with what we do best: last-mile logistics.

If you haven't yet considered what resolutions you need for 2022, don't worry, we'll give you the keys. Below, we show you what logistics purposes you need to set for a successful 2022 for your company.

Logistic Purposes for 2022

  • Improve customer satisfaction: User satisfaction with the service we offer must be one of our greatest objectives as a company. To do this, we must carry out actions that directly increase satisfaction and one of the key aspects for this is communication. Direct communication with users is essential, since in the midst of the digital age, we are used to being constantly connected and informed. With the use of specialized software, customers should be able to receive direct and real-time information about your purchases. For example, your customers should be able to know at all times where their order is or when they will receive it, among others. Therefore, it is essential that you incorporate mechanisms or tools that allow such direct communication and, therefore, increase your satisfaction.
  • Reduce failed deliveries: One of the big puzzles for most logistics companies and the carriers themselves is failed deliveries. For this reason, it is essential to make every effort to reduce this rate to a minimum or even disappear in the coming year. But you may wonder, and how do I do it? Well, as we mentioned before, the communication is key. If you establish direct communication channels with your customers, not only will their satisfaction with your company increase, but you will also reduce failed deliveries, since you can set a schedule or ensure that your customer will be at home a few minutes before receiving the package. It's that simple!
  • More sustainable logistics: La Green Logistics refers to all those efforts and actions aimed at measuring and minimizing the impact of logistics on the environment. In short, a set of initiatives to reduce the environmental impact derived from logistics activity. By implementing measures such as the reduction of plastics in packaging or the incorporation of specialized software to obtain efficient routes, we will make our operations increasingly sustainable, bringing us ever closer to the famous “green logistics”.
  • Reduce route times: Have the route planning service, in order to ensure the correct management of the operation taking into account parameters such as mileage or travel time. With the right software, this will be an autonomous task, in which you will not have to invest time and with an optimal result, since it will always offer you the most efficient route.
  • Proactive monitoring: La proactive monitoring It is the live monitoring of the daily planning of services and deliveries that warns of possible failures and errors while allowing us to react and adapt operations in a satisfactory manner.

Start the year fulfilling your resolutions and have a year of business success within your reach thanks to SmartMonkey Planner. Enjoy a free 10-day trial period.

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Before setting resolutions, it is time to take stock of the previous year to evaluate everything that happened and give rise to reflection. Learn about SmartMonkey's 2021 balance sheet in the article 2021 balance sheet: Routal's success story.

The logistics purposes you need for 2022
Find the 5 main features of good last-mile software that allows you to plan routes, track and communicate
Planner
The 5 features to look for in last-mile software

With the rise of e-commerce and, especially, after the events of the COVID-19 pandemic, the delivery of Last mile has become increasingly complex.

This is a stage that is still present, as many companies struggle to cover each and every one of the customer's needs: satisfactory and fast deliveries, contactless, flexible deliveries or with an efficient reverse logistics policy, among others.

In order to meet all of these expectations (and many others!) , logistics companies are required to redesign their last-mile strategy in order to continue in an increasingly competitive market. It is therefore essential to consider new ways of proceeding with last-mile delivery, since traditional logistics models have become obsolete, since they will not be commensurate with the current expectations of users.

In this case, the scanning is the key piece of this puzzle, since it will be what will allow your company to keep up to date within the sector. In this regard, articles such as the The digitalization of the Logistics Sector, everything you need to know about the company of the company Spring Professional, emphasizes the importance of digitalization in a sector as challenging as logistics.

Here are the aspects you should consider when selecting appropriate and efficient last-mile management software.

Easy deployment

There are countless tools on the market that aim to manage the last mile. However, not all of them meet the first essential requirement: easy implementation.

By this we mean to easily incorporate software, without the need to invest significant human, technical or temporary resources. You should buy software that makes your work easier and doesn't increase it, logical, right? Choose a tool that is easy and quick to implement, which in a matter of a few hours you can use at 100%, without having to invest too much time in explanations or meetings. Choosing complex tools makes it harder for people who have to use it on a daily basis to be more difficult to adopt and tend to keep doing things as usual.

3-in-1 tool

The last mile encompasses many processes, all of them of equal relevance. Therefore, it is very important that you consider choosing an appropriate software that covers all possible needs. The three fundamental pillars you should look for in a route manager are the following:

Planning: it must have the route planning service, in order to ensure the correct management of the operation taking into account parameters such as mileage or travel time. With the right software, this will be an autonomous task, in which you will not have to invest time and with an optimal result, since it will always offer you the most efficient route.

Tracking: In the same way as planning, being able to monitor the operations in real time will be very useful for you to be able to face changes or possible setbacks that arise.

Communication: Being able to keep your customers informed at all times to notify them of the change in the status of the service or even that they can monitor their service in real time is already another requirement of any platform. Transparency and direct communication with users is essential for their satisfaction with our company.

Flexibility

As we mentioned before with the planning and monitoring process, there may be changes throughout the operation that hinder the success of the operation, for example, a change of schedule. Therefore, it is necessary to have a tool that has sufficient flexibility to be able to make such changes throughout the operating process, such as being able to modify schedules as needed or to transfer a service from one driver to another, among others.

Honest costs

Sometimes it is likely that we are very clear about the needs of our operations but, on the other hand, we do not choose the right software because they can have exorbitant costs or hidden costs of implementation, training or integration. It is important to prioritize when choosing a tool that adapts to the costs of our operations and has a fixed price per license.

Many software charge their customers for services performed with countless extras. Imagine that you have hired a last-mile management tool that charges you for each service performed and, in your case, you have had a very good month with many services. Would it really be a successful month for you? Because a large part of your income would go to software and not to you. So now you know, you don't have to share your successes, be smart!

Guaranteed support

Everything mentioned so far wouldn't make sense if you don't have the support you need, especially when you're starting out with the tool. Look for a last-mile manager who can guarantee you adequate and personalized support at all times. Run away from big corporations with answering machines and choose help One to One.

And now that you know everything to look for in specialized software in the last mile, don't you know where to start? Choose the one that Do everything. Impossible? Not at all! With SmartMonkey Planner you have all these features and many more.

If you want to position yourself at the top of logistics, join Planner. In addition, you can sign up now without obligation, we have a free 10-day trial period.

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Do you want to know if you make some of the most common mistakes in the last mile and how to fix them? Go to our article The 4 mistakes to avoid in the last mile and we explain it to you.

The 5 features to look for in last-mile software
The last mile is an essential part of the delivery process, since it plays a key role in user satisfaction and, consequently,
Digitalization
The 4 mistakes to avoid in the last mile

La Last mile is an essential part of the delivery process, since it plays a key role in user satisfaction and, consequently, in the success of the company itself.

It is important to emphasize the parameter of the satisfaction of our users since they, having a bad experience or being dissatisfied with the business activity we carry out, would turn to other competing providers. In addition, they would also highlight the negative experience regarding our company to other potential customers. For this reason, it is essential that in the logistics sector, we analyze what the main problems are in this last mile and, above all, how to solve them.

The Last Mile: The Great Challenge

As we have anticipated before, the last mile is the most challenging part of the logistics process given the great complexity involved, so identifying possible errors and possible solutions is of vital importance.

Here are some of the most common errors in the last mile and how to resolve them.

Outdated planning strategy: times change and with them the ways of proceeding. Living entrenched in the past is a mistake and this can be applied to practically any field, including logistics. Until very recently, last-mile planning was carried out manually: a single person responsible for drawing up that impossible “sketch” of hundreds of deliveries on the same route and with numerous drivers. This way of proceeding is the first big mistake: thinking that the way it has been done is always right.

It is often said that “adapt or die” and this is an example of this. It is crucial to adapt to the new times through the use of digital tools that allow last-mile planning. Thanks to the use of software specialized in managing the last mile, such as SmartMonkey Planner, better results are achieved in route efficiency, user satisfaction (direct communication with customers), savings in planning time (now it's a matter of a few minutes) and significant economic savings also in fuel.

Poor communication: Not having direct and effective communication with users and even with the drivers themselves is also one of the biggest mistakes in the last mile. Having direct communication channels that allow customers to know when they will receive a package or what phase of the operation it is in is key to their satisfaction. The transparency and effectiveness of the entire process is very important for your success and, consequently, ours as a company. At SmartMonkey Planner, we have a direct communication platform through emails in real time, so that operations leave that problem behind and become a pleasant common experience.

Low flexibility: as mentioned before, anchoring in the past is a mistake, since we are in a digitalized and constantly changing world. For this reason, it is necessary to implement last-mile management software that allows the flexibility required by logistics, such as schedule changes or the variability of service and driver assignments. It is necessary to have a tool that has this flexibility to ensure an optimal and efficient service.

A bad implementation: all the errors mentioned so far can be truncated in their solution if a good implementation has not been achieved. It is a priority to implement last-mile management software that has an efficient, fast and optimal implementation. With this we are not only referring to the most technical aspects but also to the human aspects: implementing a tool that is easy to use, so that it can begin to be used effectively in a matter of hours and not over weeks or months. An example of this is the company's success story. Prio Energy, who have been able to start optimizing production routes with literally 1 meeting and a 20-minute demonstration.

“Digital transformation is no longer a source of competitive advantage, it's a ticket to stay in the game”

Pablo Martinez — SmartMonkey CTO

If you want to solve all these problems and many more, join Planner

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Do you want to know more solutions for the logistics market? We recommend that you read the article How to increase logistics productivity: the 4 key aspects you must consider to increase logistics efficiency.

The 4 mistakes to avoid in the last mile
On November 26th, in exactly 10 days, a new edition of Black Friday will be held.
Logistics
Prepare your logistics for Black Friday in less than 2 weeks

On November 26th, in exactly 10 days, a new edition of the Black Friday.

El Black Friday or Black Fridayor is it a commercial event of American origin that is held every year for a day: always on the last Friday of the month of November.

On the occasion of the opening of the Christmas shopping season, great discounts and offers are offered throughout Black Friday in large and small stores, both electronic and traditional.

Black Friday and the Last Mile

Given the enormous impact of this “Black Friday”, a large part of businesses are positively affected on this day, especially e-commerce. According to studies shown in Lobocom,”E-commerce companies increase their turnover by 35% on average during the week of Black Friday”. In addition, the fact about the comparison with Christmas shopping also stands out, “since The benefits may even exceed the Christmas campaign”.

In this regard, it should be noted that the month of November is the month of the year with the highest number of sales, thus surpassing the hitherto unbeatable months of December (Christmas campaign) or January (sales campaign).

In this way, and taking into account the great benefits and business repercussions of this important date, it is essential to formulate a strategy prior to Black Friday, in order to guarantee success in our company.

Preliminary market study

As we mentioned before, a prior approach is essential in addition to creating a strategy focused on Black Friday. Here are some of the key aspects you should consider when carrying out a previous study:

· Knowledge of market trends: know what the dynamics of the market are in terms of purchasing patterns, products or services most in demand or, even, purchase method (in-store pickup, home delivery, etc.), among others. Knowledge of all or some of these trends will help us to establish a more precise and, consequently, more beneficial strategy.

· Analysis of our consumers: in relation to market trends, it is also essential to know our own users or potential customers in depth. Knowing what they want, what they need and how they want to achieve it will provide us with a lot of information to direct a focused and efficient strategy.

· Black Friday marketing strategy: knowing the market and our potential consumers will help us to implement a marketing strategy focused solely and exclusively on Black Friday. Strategies such as email marketing campaigns in the previous days, publications on social networks or even banners and pop-ups within the website itself may be considered.

How to prepare your logistics last mile for a successful Black Friday

Given the enormous success of this “Black Friday” and the great impact on sales in practically all the stores participating in this “black day”, it is essential to establish a logistical preparation prior to this day.

For users, it is increasingly important to speed and efficiency in your purchases. Make a quick and convenient purchase: from anywhere (at home or from the beach) and receive it in the shortest possible time. This entire process is one of the most important aspects for users and one of the most difficult logistically for any company.

For this reason, implementing tools that facilitate logistics operations and, above all, help to efficiently manage delivery routes is vital on such a special date.

Here's how you should prepare for Black Friday in your store:

· Using specialized software in the last mile: the implementation of tools on such an important date as Black Friday will be a fundamental part of your company's commercial success. Tools such as SmartMonkey Planner they will help you to cope with this frenetic sales day in addition to Increase profits, because with Planner you'll plan routes in an intelligent way: the program itself will result in the fastest and most efficient routes in a matter of seconds. With efficient routes, you will not only have economic savings, due to lower fuel consumption, but also time savings, since you will carry out the most optimal route.

· Direct communication channels with your customers: direct communication with users is essential, since in the midst of the digital age, we are used to being constantly connected and informed. With the use of software such as Planner, your customers will be able to receive direct and real-time information about your purchases. For example, your customers will be able to know at all times where their order is or when they will receive it, among others.

· Transportation: given the enormous sales forecast on this date, it is necessary to take into account the company's logistics and transport capabilities. If, as we mentioned before, the increase in sales is greater than 35% compared to other days, we must weigh what the transport needs will be in order to operate successfully. To reach the total of the operation, you must Increase transport of the same exponentially: increasing one third of available transport, at least 10% if sales exceed 35%.

· Logistic staff: in the same way as with transport, it will be necessary increase specialized logistics staff to be able to carry out the day in a satisfactory manner. Taking into account that the increase in sales will be 35%, the available logistics staff must increase by the same number or, at least 10% less. Therefore, the workforce should increase by 25%-35% for that day.

But there are 10 days left, am I still on time?

Of course! One of our greatest achievements at SmartMonkey is, precisely, having launched it to the market the most user-friendly last-mile management tool on the market. In fact, a recent case is that of the Portuguese company Prio, a company that has been able to start optimizing production routes with literally 1 meeting and a 20-minute demonstration.

Don't be less, and do like Prio. Try Planner and start enjoying all the benefits.

Create a schedule in a few minutes with this step-by-step

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Do you want to know more about Black Friday and what are the forecasts for the 2021 edition? Go to our article Black Friday: 50 days until the biggest logistics challenge of the year and find out.

Prepare your logistics for Black Friday in less than 2 weeks
The trend towards digitalization has brought with it new forms of purchase for users, thus giving rise to e-commerce.
Digitalization
Ecommerce: everything you need to know about buying and selling online

The trend towards digitalization has brought new forms of purchase among users, thus giving rise to Ecommerce.

El e-commerce or Ecommerce is defined as the purchase and sale of products or services over the internet.

Currently, the relationship between Logistics and the Ecommerce has become so important that the first has become one of the fundamental pillars of the second, since the logistics industry is indispensable for the success of ecommerce. For this reason, for companies that focus their business activity on Internet sales, logistics is one of the most careful processes, since the satisfaction of their customers and the shopping experience will depend on it, especially on last mile.

Advantages of Ecommerce

Below, we show you what are the main advantages of implementing a ecommerce compared to a traditional business with the help of the specialized blog Ecommerce News:

  • No geographical limitations
  • wider range of products and services
  • Reducing costs
  • Greater ease of purchase for users in addition to a saving in time spent on the purchase
  • Easier to develop marketing strategies
  • Increased transparency and information for customers
  • Possibility to offer a comparison of products with respect to their prices and characteristics
  • No time limit

Ecommerce and the Last Mile

La Last mile corresponds to the final stage of the delivery of the order. It is one of the steps that increase logistics costs the most, due to factors such as traffic, urban limitations or inefficient routes in daily deliveries (which will later result in delays in orders, among others).

How to optimize the management of the last mile?

  • Establish strategies in the delivery conditions: use collection points after failed deliveries, direct communication with the user about the status of the package, etc. Also, with regard to transportation, grouping orders by area or the use of light vehicles with better urban mobility.
  • Use transportation route management software: optimize the routes that are going to be taken in the distribution of packages so that they are as efficient as possible. With this, we will achieve not only a significant reduction in fuel costs, but also a reduction in the time spent on routes and, consequently, an increase in profits. In addition, optimizing routes will make your company a much more sustainable company.

With SmartMonkey Planner you can enjoy all the advantages offered by a ecommerce thanks to our advanced software, which allows you to establish direct communication with your customers, have traceability of deliveries, optimize routes, and much more!

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Do you want to know what are the 5 key tools for an ecommerce? Go to our article Ecommerce: 5 essential tools to survive in 2021 and find out.

Ecommerce: everything you need to know about buying and selling online
Customer Centric responds to the customer-oriented strategy with the objective of focusing all processes and operations on users.
Digitalization
What is the Customer Centric strategy and how to implement it in 6 simple steps

The unstoppable growth and digital business transformation is undeniable, a fact that has completely changed the existing relationship between companies and consumers. Currently, it is necessary to implement strategies and have the necessary resources to improve the customer experience. To do this, it is essential to ask the following question: What do customers want? With the answer, we can begin to prepare a strategy based on Customer Centric.

Recent studies such as that of the company Deloitte confirm that the companies that implement strategies based on Customer Centric are 60% more profitable compared to those that haven't implemented it. If you want to be part of that successful majority, keep reading this article and we'll tell you how.

What is Customer Centric?

The concept Customer Centric — literally translated as “Customer at the Center” — responds to the customer-oriented strategy through which an organization places the customer at the center of the company with the objective of focusing all processes and operations on users.

Thanks to the implementation of Customer Centric, with actions aimed at customer satisfaction and loyalty, among others, clear objectives such as loyalty are established and benefits such as increased sales are achieved. All of this stems from the idea of satisfying customer needs and, consequently, establishing a long-term relationship.

In short, the Customer Centric philosophy has been gaining more and more ground in companies, linking their customers to decision-making and subsequent development of the product or service, in order to offer a better value offer.

Customer Centric Benefits

· Increased user satisfaction: placing the customer at the center of the company's interests, as a key part of the operation, will make them feel much more satisfied due to their prestigious position.

· Customer loyalty: as we mentioned before, with the implementation of customer centric your customers will be more satisfied. As a result, by having happy customers, you will be able to make them loyal to your company.

· Improving the corporate image: placing your customers at the center of the company's activity or operations will significantly improve their image of your company.

· Positive publicity: taking into account good results in parameters such as user satisfaction or even the rate of improvement in the corporate image, it will be possible to obtain feedback in the advertising of our company. A satisfied and happy customer will be a company's best prescriber.

· Business opportunities: knowing in detail the concerns and needs of customers will not only help to increase their satisfaction but also to exploit all possible business opportunities. Through calls, surveys or even through support channels, we can detect all these needs and treat them as information that can be implemented.

How to implement the Customer Centric philosophy in your company

Taking action and implementing such a novel strategy and approach as Customer Centric is not easy. Therefore, below we show you by the hand of Zendesk What are the key aspects you should consider to carry it out:

· Take actions to receive Feedback from customers: measuring your satisfaction in addition to knowing first-hand what your feelings are regarding a service or product is key to being able to improve. Use the feedbacks as a premonitive formula for solutions to potential problems, it will make it possible to identify unmet needs in advance.

· Instant communication: as we mentioned before with feedback, having direct and instant communication with your customers is a key factor for their satisfaction and success, since you offer them security and transparency regarding your product. At SmartMonkey, we are very clear that communication with customers is very important and, therefore, we have our email platform. Thanks to the email platform, you can keep your customers informed at all times with the possibility of directly sending all the information necessary to monitor the full service in real time.

· Synchrony between departments: all departments of the company must be aligned with the continuous improvement of the customer experience; all must aim to provide the best possible experience to customers through support, information or improvements at the product level, among others.

· Loyalty programs: the most satisfied and loyal customers will be the best ambassadors of our brand. In this way, it is important to consider a loyalty strategy so that the customer feels part of a community as well as feeling the center of it.

· Appropriate interaction and support: it is essential to offer customers all the interaction and support they need with our company. Therefore, offering a multiplicity of channels to adapt to the needs of each user is key, since the objective will be to facilitate communication.

· CRM: it is necessary to have a customer data manager in order to be able to know in depth what the needs of each of them are; having the right tools will make customers have a better service and are more satisfied. In addition, with a CRM you can manage the analysis of all the information collected from your customers and extract, among others, buying trends.

Do you want to know other market trends? Go to our article Reverse Logistics: what it is and what are its benefits and discover one of the latest trends.

What is the Customer Centric strategy and how to implement it in 6 simple steps
Reverse logistics as the set of practices and processes responsible for managing the returns of products purchased by users.
Innovation
Reverse Logistics: what it is and what are its benefits

In general terms, it could be said that logistics is the set of all those processes necessary for a product or service to reach the end user; it mainly covers transport, storage and distribution operations.

In turn, and due to the constant change in processes and ways of doing things, largely due to technological advances, different modalities in processes coexist, such as reverse logistics.

La reverse logistics It is a very broad concept that can encompass a myriad of activities since, for example, some of them have ecological purposes (with the objective of avoiding harm to the environment) or others for commercial or productive purposes only, since their actions are interconnected to market supply.

So... What is Reverse Logistics?

With the rise of the already known ecommerce, logistics processes have been forced to adapt and update themselves to new trends and market processes in order to maintain competitiveness vis-a-vis other companies. One of the aspects in which logistics has had to adapt the most due to these b2c stores is, precisely, in the logistics of returns or returns (those users who have purchased an item online and want to return it directly).

In this way, reverse logistics can be defined as the set of practices and processes responsible for managing the returns and returns of those products purchased by users. These returns or returns are managed from the points of sale of the products to the manufacturer itself (to carry out the repair, recycling or disposal of the product at the lowest possible cost).

In addition, logistics is already another process and of vital importance when planning the supply chain for the satisfaction of the end customer.

What are the differences between regular logistics and reverse logistics?

The infrastructure required to manage reverse logistics processes is, as a general rule, the same as for any other logistics process in use. However, we can find differences both in its planning and in its monitoring: the operation is different, since now the customer is the one who can act as a “warehouse” and wait for the collection of their product for subsequent evaluation and economic compensation. In this way, new adapted processes must be considered and taken into account, such as the user's pickup or the treatment of the return product.

Types of Reverse Logistics

According to the article on Reverse Logistics From the company Imatica, specialized in IT services and management software, two types of reverse logistics can be differentiated due to the difference in their approach or objectives.

Business: consists of managing the returns that customers make to inventories or manufacturers.

Eco-friendly: one of the priorities of reverse logistics is precisely the reduction of the environmental impact caused by business activities. For this reason, its use for waste treatment, such as recycling, is also very popular (discarded objects are grouped together for their subsequent recovery process to promote their use).

Benefits of Reverse Logistics

The benefits of reverse logistics are diverse, since they can have both an impact on a better corporate image of the company as well as contributing to a cost reduction. In addition, it is also necessary to highlight the enormous environmental benefit in ecological reverse logistics thanks to practices such as recycling.

Economically, this type of logistics can be significantly beneficial since it is reduced both in time and in costs because there is no need to invest in new materials in the production chain.

Also, and taking into account the typology, “ecological inverted logistics” promotes environmental protection as long as practices such as recycling are carried out (raw materials are created from waste, thus generating a second life cycle for products). All of this also contributes to the improvement of the company's corporate image, since all actions that take advantage of sustainability are increasingly recognized and better valued.

For all these reasons, reverse logistics must be increasingly optimal and efficient, since the management capacity that any company has to manage services such as product returns or customer returns will determine its business success.

As with traditional logistics and last-mile delivery services, reverse logistics also requires tailored planning and optimization, since the user's requirements will be the same: a satisfactory experience both in terms of quality and economy with timely collections and quick returns.

In order to plan reverse logistics that meets the needs of users, it is essential to adopt a last mile management software that allows the efficiency and optimization of all the resources available in your company.

With Routal Planner you will get specialized software that can carry out the different operations that involve reverse logistics, such as the collection and return of products, thanks to optimal planning of the process and with real-time monitoring of its development. Below, we show you a short video in which we show you how to carry out this type of operation in a simple and, above all, efficient way thanks to the use of Planner.

Reverse Logistics: what it is and what are its benefits
implement actions to ensure the good use of resources and significant energy savings for better logistics efficiency
Logistics
Energy savings in logistics are possible: 3 measures you should know to achieve energy efficiency in your company

Optimizing the use of resources, especially those that have an environmental benefit, is, to an increasing extent, an extended challenge for society, especially in the logistics sector.

Due to the complexity of logistics operations, many companies face the challenge of reducing costs while being forced to optimize the use and management of resources, as in the case of energy. All of this combines not only environmental awareness and concern, but also a concern to remain competitive with other companies.

In this article, we analyze the importance of implementing actions to ensure the good use of energy resources to achieve a more sustainable future within your company.

Current Situation

The service sector, also known as the tertiary sector, is one whose economic activities are based on the distribution and consumption of goods in order to meet user demand. In turn, this sector encompasses logistics and transport as a subsector, key industries for the development and good functioning of those more developed economies.

However, the logistics industry is a sector in which there is a lot of competition and, given the increasingly specific requirements of users, the improvement of energy efficiency within the logistics process itself has become a key factor for logistics companies to continue with a tight price offer without detracting from the quality of their service.

For this reason, it is essential to implement solutions capable of integrating energy saving mechanisms into their logistics processes in order to achieve resource optimization in addition to remaining at a demanding competitive level such as logistics.

In line with this, according to statements made by Fernando López Zamora, Head of Development at EDF Fenice Ibérica, at the conference”Energy efficiency in logistics facilities” energy efficiency is “a tool for competitiveness and sustainability for companies”.

Emphasizing the fact that “today's industry must prepare to compete tomorrow. And energy and the environment are at the center of this transformation. Therefore, this preparation implies that there is a digitalization of the logistics industry with digital technologies that improve the efficiency of facilities and processes; that are committed to sustainability with efficient uses and consumption of resources; and that they invest in competitiveness to be able to produce the same thing while consuming less”.

Measures

Fleet Management System: the incorporation of specialized software for fleet management will allow the planning of shorter and more efficient routes, in addition to also achieving greater and better use of resources, since it will be possible to take into account the capacities of the vehicles, among others.

Warehouses: The incorporation of automated warehouses has established itself as an efficient solution for energy optimization because it ensures greater use of resources, both spatial and operational (intelligent warehouse management systems).

Electric vehicles: The electrification of vehicles is becoming increasingly popular thanks to a significant improvement in technology, the reduction of the final cost for users together with a lower cost of use and the absence of limitations on use (large city governments have implemented what are known as Low Emission Zones in order to restrict access to cities to all those vehicles that are the most polluting). Initiatives such as that of the company Avia, who have recently developed the EV12 model, a vehicle specifically developed for the city with 100% electric propulsion, making it an environmentally friendly vehicle.

vehículo-avia-ahorro-energético
EV 12 electric vehicle 100% developed by the company Avia

Benefits of saving energy

With the implementation of more sustainable measures that help to save energy in the normal operations of any company, great advantages will be obtained for your company as a result:

  1. Lower costs: The change in perspective on logistics operations, making it a much more sustainable sector, also bring economic benefits, since planning efficient routes will increase productivity while reducing fuel costs, among others.
  2. Decrease in the carbon footprint: Thanks to new ways of proceeding in logistics, such as the use of electric vehicles or the optimization of routes, the impact of logistics operations on the environment is reduced, thus minimizing the known carbon footprint and improving the quality of life in cities.
  3. Improving the corporate image: Today, organizations understand sustainability as a priority issue, and this is reflected in their value proposition. For this reason, more and more companies are taking sustainability into account in their activities and, also, as a value proposition in their marketing and communication strategies.

How can you add to energy savings in logistics? With an effective use of resources and logistics processes, such as planning more efficient and shorter routes or the use of less polluting vehicles. All of this will not only contribute to environmental efficiency but also to greater economic profitability for companies. If you want to know more about logistics and sustainability, don't miss our article about Green Logistics.

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Energy savings in logistics are possible: 3 measures you should know to achieve energy efficiency in your company