Digital Transformation Logistics
Mañana empieza el SIL, la feria internacional de la logística en Barcelona. En la feria no sólo hay expositores (A142), sino que es el lugar donde todo el sector se reúne y charla sobre su futuro. En una de esas charlas se hablará sobre “Tecnología vs. Personas, en busca del Propósito”. El propósito es algo que muchas empresas no tienen claro. Su día a día les tiene absortos y no son capaces de levantar la cabeza, pensar y decir: ¿Por qué estoy haciendo esto?
En mi opinión, no existe dicotomía entre tecnología y personas. Es personas y tecnología. La una sin la otra, no tiene sentido. Esta es la difícil decisión estratégica y cambio de mindset que muchas empresas aun no han tomado en este sector. El sector logístico ya no es un sector donde únicamente lo físico y las personas son lo importante. La tecnología y los datos son igual de relevantes que las personas (y seguramente cada día, lo serán más).
Nuestro propósito como Routal es claro (y tratamos de compartirlo en todo momento) “Move the world smarter”. Para alcanzar ese propósito la tecnología es clave, es la herramienta que permite a nuestros clientes conseguir la máxima eficiencia con la mínima complejidad. Nuestro humanismo consiste en dar un soporte constante y acompañar durante todo el camino que transformará de forma profunda la compañía.
Para llegar a este propósito hemos tenido que trabajar en los pilares de la compañía. En la ética, los valores y el humanismo de la compañía. Durante ese estudio introspectivo, te das cuenta que las personas que han confiado en ti, de forma natural comparten los mismos valores, la misma ética y un humanismo.
Algunos ejemplos como Ametller Origen, el retailer de alimentación donde su primer principio es el crecimiento sostenible y el compromiso de reducir el impacto de la actividad en el medio ambiente. El uso de Routal les supone ahorrar más de un 30% de Km recorridos, combustible y emisiones, entre otros beneficios alineados a sus valores.
Otro ejemplo es Quaker State, la empresa de lubricantes líder en México. Su pregunta es ¿Cómo una compañía de lubricantes puede perdurar más de 100 años en el sector? Manteniendo sus valores: Honestidad, responsabilidad y compromiso. Compartiendo una misión clara para todos sus clientes: Entregar sus productos con los más altos estándares de calidad, utilizando tecnología punta, sin olvidar su compromiso con el bienestar social, superando las expectativas de sus clientes y la sociedad.
Quaker ahorra más de 2M$ al año automatizando sus procesos de planificación de rutas. La integración con su ERP SAP les permite automatizar todos sus procesos de facturación. La monitorización de sus repartidores y la comunicación con sus clientes, les permite compartir la hora estimada de llegada de formaprecisa, para que sus clientes (talleres mecánicos) puedan optimizar la reparación de los autos de sus clientes.
Para terminar, todo este trabajo se condensa en nuestro manifiesto.
Move the world smarter
All that's left is Christmas. Breathe, there's less left. We all have the same feeling, a terrible storm has taken hold of our email, TV and shop windows. With a single motto: Black Friday.
The feeling that everyone has of is one of exhaustion, tiredness and deception. Everything related to Black Friday is predictable, irrational and in some cases generates unethical behavior. From the famous pushes in American department stores, to raising prices the days before.
This negative perception is taking hold of all consumers. I'm not saying that, but different studies that try to analyze the perception of this day and arrive at the same coincidence, people are tired. Consumer Emotions on Black Friday: Antecedents and Consequence, Are Black Friday deals worth it? Mining Twitter Users' Sentiment and Behavior Response.
We all know that to sell in the B2C world, the best strategy is to attack the reptilian brain. Moving the customer to make irrational decisions, the urgency, a reduced time and a price that will never be repeated, will make you lose THE opportunity to buy what you wanted so much. With all this push, it's obvious that people can't do anything other than go crazy with their credit card.
A second after the purchase is the moment when you realize that you probably didn't need it (nor could you afford it). The offer wasn't as good as you thought and on top of that you'll have to suppress your desire to party due to lack of funds. You feel used by marketing departments and you start to distrust.
The following year, you look months in advance at the price of what you really wanted to buy (waiting for the big day) to make sure you're not being fooled, and you end up delaying the purchase you would have made months before. When the big day comes and after 3 failed delivery attempts by the courier, you end up thinking about the environmental impact of your purchase. You are not alone. Brands are also evolving.
One of the demonstrations that Black Friday is at a time of exhaustion is Google Trends. We can see a clear setback in the Number of Google searches of the term Black Friday.
We have overcome the peak, and we are going down in what can be sensed as a tendency to flatten the curve. It probably won't go away, but it shows clear signs of exhaustion. Like any acquisition channel, the beginnings tend to be explosive, at a point where it becomes mainstream, and from there performance declines rapidly to a point of exhaustion. Tap Find New Things. Innovate in new strategies.
How are brands attacking this Black Friday exhaustion problem? Green Friday
With new proposals such as Green Friday. Turn around an exhausted concept and associate positive values with the brand. A clear trend in all ecommerce is sustainability. At the last ICIL Debates event in Barcelona, important brands such as Mango or Desigual publicly demonstrated their commitment to sustainability throughout the chain. From sustainable manufacturing to transport with the lowest possible CO2 footprint. Eliminating the plane as much as possible from its logistics, as a practical example of its actions.
A pending issue is the sustainable last mile delivery. Companies such as Beeasy or Geever they deliver the last mile by scooter or on foot with a delivery network that allows last-yard capillary delivery with 0 emissions. These are alternatives that will grow more and more strongly in cities.
For heavier products, or greater geographical dispersion (less dense areas), it will be essential to use electric vehicles. One of the biggest brakes is the operational management of this type of vehicle. They don't behave the same way and the fear of”Stay strung out” is a brake on their transition. Technology such as Routal allows plan routes and make sure you don't run out of battery increasing vehicle productivity by more than 30% and facilitating the management of this new way of distributing.
Without a doubt, this transition will not be easy. But if we can turn a date as relevant to commerce as Black Friday into Green Friday, we will help generate that momentum that the sector needs to make the transition to last-mile logistics more sustainable. It's for the good of all.
One of the main fears and brakes faced by SMEs in the face of digitalization is Integrate technology. The dichotomy between choosing an all-encompassing solution, or specific solutions for each problem. The benefit of the first option is that you're dealing with a provider, everything is talked about, and you shouldn't have too many problems. The problem is that it probably doesn't solve your processes in the best way and you have to make a lot of effort to adapt your business to the solution. The other option, small experts, usually provide a better solution for each process, but there is a difficulty in getting applications to talk to each other. This means that two companies collaborate, integrate and that can be a challenge.
More complex systems and technological solutions are increasingly required to optimize operations. The trend of one-fits-all (one solution for everything) is increasingly difficult to find and as companies grow they require more specific solutions, so integration projects are becoming more common, but above all, more necessary.
To give great examples, one of Inditex's great successes has been to have a single centralized stock between warehouses and stores, which allows us to have the status of each of the pieces of clothing in real time and achieve greater success in an omnichannel environment where the customer purchases online, is sent from several centers to be consolidated in the store and for the customer to pick up at the store buying an accessory that he found by chance. But something like that is not only available to large companies, SMEs also have a lot to say, and their scale makes them projects much easier, faster and cheaper to implement.
The benefits of integrating systems are direct improvements in productivity and in the quality of the service they provide, standardized and optimized operating processes, ease in internal processes, reduction of errors and also homogenization of data.
Why is it presented as a brake or challenge, or Why does it bring so many headaches for companies? Mainly because many companies do not have the experience, the resources to develop these projects internally or personnel with the knowledge to lead a project of this type. The solution, outsourcing these projects, and without good advice the project can be a big headache. For this reason, looking for a supplier who knows the business, the tools to be integrated and who has experience in similar projects are the key to success for an integration project to be successful, to develop quickly and on budget.
Unfortunately, sometimes digitalization brings high costs that companies don't want to face because of the doubt if there will really be a return on that investment. Digitalization with common sense, improving and streamlining processes undoubtedly generates great investment returns. For this reason, it is essential that companies have an orchestrator that understands the need of the business, the company's processes and those points that hold back the organization in order to optimize them through digitalization. The partner will actually implement that improvement, but it requires high-level coordination that will be the key to success.
Strategy, knowledge and execution.
Nowadays, execution is the easiest part of all. There are different types of integrations depending on the available systems and the objective. The most used are those of APIS (Application Programming Interface) where data is transmitted from one side to the other quickly and securely. It is the most used since it is simpler to perform and offers great performance. These are used to enter information to our platform. On the other hand, the most used to extract information is integration by Webhooks, in which the external system receives data when there is an event on the platform.
At Routal, we are constantly working to make integrations an opportunity to further streamline company processes, digitize and automate tasks that don't add value, and concentrate the work of employees on those points where a person actually provides the most value.
Quaker State Success Story: Integrating SAP
Quaker State is a leading company in the distribution of oils and lubricants for vehicles in Mexico. In 2020, they needed to standardize their merchandise delivery procedure and homogenize their operations so as not to rely on one or more people for the replacement of personnel. Faced with this situation, they implemented the Routal solution.
Thanks to the Planner intelligent route planner, they were able to unify processes into one, in addition to generating a single procedure that would be available to any worker regardless of their level of training.
Prior to the integration, the delivery routes were carried out manually, they spent hours daily in the planning process, there was little monitoring of the operation, and obtaining any report on performance metrics was an investment of tens of hours, which greatly limited the ability to make improvement decisions.
Once the integration of their SAP system with Routal was implemented, route planning began to be carried out in an automated manner and in minutes. The risk on the figure of the route planner and the dependence on that person was completely reduced. The creation of metric reports was also automated to improve the control and monitoring of their distribution processes, and most importantly: the data were reconciled and validated. Thus, the entire process was standardized and optimized.
”Routal Planner is essential to us. It saves us planning time and makes us more competitive against our competitors” Your Manager has your opinion.
Lácteas del Jarama Success Story: Integrating AS 400
Lácteas del Jarama It is one of the most important dairy companies in Spain, it was the first company to introduce mozzarella in our country and its history supports it as one of the main dairy companies in the food service sector.
The successful implementation of Routal was due to the successful integration of its ERP system, an IBM AS400, an extremely robust but difficult to integrate system. To be able to count on a partner like Nakima helped to be able to carry out the integration in just 3 weeks of work and thus reduce the start-up time to just over a month.
The internal leadership clearly identified the need to eliminate steps in the process that would focus logistics personnel on what really provides value: “Deliver quickly, with the lowest cost and offering the best possible service”.
The experience of working with professionals who are experts in this type of project means that companies can think further and want to improve other processes that seemed impossible to improve.
At Routal, we work to streamline integration processes through partners with a lot of experience in all types of technologies and businesses, achieving success so that projects are successful.
Try Routal for free for 10 days click here.
Numerous studies show that it is up to 7 times more expensive to attract new customers than to keep existing ones. Therefore, taking care of the relationship with our client base is a better investment for our company, according to the specialized agency. Demandforce.
And how can we keep our customers? If your company is part of the logistics sector, keep reading, because we have a lot to tell you that will interest you.
Delivery times: the great logistical challenge
Surely it has happened to you too: you buy something online that you need immediately, but delivery times are a real nightmare.
It is nothing new to emphasize that the logistics sector is one of the most competitive and most competitive considering the operations of large companies, who offer increasingly shorter delivery times, of even hours. For this reason, offering an agile delivery service is currently one of the biggest differentiations and the main objective for any logistics company.
And now surely you have doubts: and how do I do it? Below we will explain the 3 essential techniques to optimize and improve your delivery times.
Techniques to reduce delivery times
Optimize routes
Route optimization will be your best weapon to reduce delivery times to a minimum.
For the route optimization prior planning will be essential: defining the total number of stops to be made, establishing a specific schedule or even detailing restrictions such as weight or volume in each vehicle. All these characteristics of our delivery route, if we take them into account at the time of planning, will help us to result in a customized route adapted to the operational needs of our company.
Once we have strategic planning, it will be time to optimize our route. We understand that a route is optimal and, therefore, is optimized, when the result is efficient in terms of time and mileage. Incorporating route optimization software in this step will be essential to have efficient routes, since using artificial intelligence it will effectively calculate in a matter of seconds what is the best route we can take. All of this will help reduce delivery time by more than 30% with respect to other routes.
Incorporate technology into your operating process
Digital logistics transformation is already a reality and, therefore, it is essential not to be left behind and incorporate it into our operations.
In order to be able to adapt to the needs of our commercial activity together with the technological requirements that are increasing at the social level, it is essential to include specialized software that not only improves the efficiency of our daily activities but also increases the level of competitiveness of our company compared to others.
An example of technological inclusion is the incorporation of a CRM (Customer Relationship Management) in our company. CRMs are software specialized in a set of practices, business strategies and technologies aimed at fostering an efficient relationship with our customers.
Communicate with your customers
In relation to the above, with regard to incorporating specialized software into our operations, it is also essential to have specialized programs in the direct communication with our users.
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 communication channels that allow our users to know when they will receive a package, to verify that a service has been carried out or what phase of the operation it is in is key to effective deliveries and also to the satisfaction of all parties.
With SmartMonkey Planner you can count on each and every one of the techniques that will reduce your delivery times from day one. Do you want to try it? Now you can do it and for 10 days for free!
It might seem that in logistics there is only one path and that this is as simple as programming-deliver. Nothing could be further from reality, logistics encompasses a lot and since “a lot” is understood a multitude of types of operations, each with its own different requirements.
Next, we'll take an in-depth look at two of the most popular operations: on-demand deliveries and scheduled deliveries.
On-Demand Deliveries
On-demand deliveries, in English known as On Demand, are one of the most demanding operations in recent years, further boosting and strengthening the last mile.
On-demand deliveries cannot be planned, since they are operational and require a minimum of time from the time the order is placed until the delivery is made.
It's Friday night and you want to treat yourself with food Fast food. You call the restaurant and place the order. As soon as the food is ready, the delivery person will take your order home. This is an example of on-demand delivery.
With the example mentioned above, it is easy to see that at certain times when the restaurant has peak times when receiving orders, it will be difficult to cope with the growing demand, since making several deliveries on demand simultaneously is really complex.
Therefore, when delivering on demand, certain metrics should be taken into account, such as hours or days of the week if we follow the example of the restaurant (it will be essential to observe if orders increase on weekends and after 8:00 p.m.) and, on the other hand, on Mondays at noon they decrease). These metrics will help us manage our own resources, since this way we can predict if we will need to increase the number of delivery people hired on weekend evenings and decrease it during the week.
Scheduled deliveries
Scheduled deliveries are shipments scheduled in advance for a specific time interval.
In this case, and as an example, we could transport ourselves to our wedding day. We get in touch with a tailor to make us a tailor-made suit. After several tests our suit is ready. Now, we only have to tell our tailor what day and at what time we will pick up the suit so that it is ready for the link.
As seen with the example, in scheduled deliveries, a service is offered in advance with the customer so that the order arrives on a specific day and in a specific time slot. The customer selects the date and time interval in which he wants to receive his order.
This mode of delivery allows customers to monitor their shipment in real time, so they will feel connected at all times and will be able to control both the status of the order, its location and the exact time of delivery.
According to the portal Ibertransit, scheduled deliveries are an increasingly common service in large cities where deliveries are made within a maximum period of 48 hours and with a zero delivery cost for the customer. Despite the increase in on-demand deliveries, it should be noted that it is not yet an extended service, since they represent 20% of total deliveries.
Make deliveries on demand vs. scheduled deliveries
The way in which we operate on demand and scheduled deliveries is completely different. In fact, so much so, that it is very difficult for companies to be able to carry out both operations simultaneously, since the requirements are very different.
The main difference between on-demand deliveries and scheduled deliveries is that the latter allow you to add different customers in the same vehicle and, therefore, be more efficient in optimizing time and resources. On the other hand, in on-demand deliveries, it is so dynamic that it is very difficult to be able to add several deliveries on the same route.
As mentioned above, in on-demand deliveries, the planning process requires a predictive pretext on which to base these demand predictions with data from previous dates. With these predictions, an approximate number of vehicles needed or the minimum inventory level required will be established.
In the case of scheduled deliveries, companies give customers the flexibility to schedule their own deliveries. In this sense, the predictive element ceases to make sense, since the number of deliveries to be made is known in advance. In scheduled deliveries, the inputs that must be planned are the number of vehicles needed to carry out the deliveries, which orders to group (batch deliveries) or in what order the orders should be delivered (make optimized routes).
At SmartMonkey, we are constantly developing to empower the last mile. Our customers can more effectively determine where, when and how they want to receive their shipments. Decide for yourself with our free trial period.
The logistics industry is constantly changing, both in processes and in the way of proceeding. These changes are due, to a large extent, to technological advances in the sector, which evoke different modalities in logistics processes, such as reverse logistics.
What is Reverse Logistics?
Reverse logistics is 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, reverse logistics is already another process and of vital importance when planning the supply chain for the satisfaction of the end customer.
7 tips to improve your reverse logistics
Customer Centric: It 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.
The implementation of the Customer Centric strategy increases the satisfaction of our users, since we focus all our efforts on knowing their needs and concerns regarding our activity. Knowing the desired delivery and return times or a maximum price per service will help increase your satisfaction and, therefore, carry out a satisfactory reverse logistics process.
Strategic Planning: Perform measured and analytical planning to ensure the correct management of operations taking into account parameters such as mileage or travel time. With the right software, this will be an autonomous task, in which a large amount of time is not required and with an optimal result, since it will always offer the most efficient route.
Optimization of resources: The optimization of resources when it comes to transportation is essential for the success of your company's reverse logistics process; it will help control the traceability, trajectory and tracking of shipments. In addition, planning delivery routes efficiently and optimally will result in significant economic and time savings. Therefore, the use of specialized software for route planning will be a key element in increasing the efficiency of your company's reverse logistics process.
Use of metrics and KPIs: To evaluate the productivity and performance of the reverse logistics process, the use of KPIs is essential (Key Performance Indicator). These indicators will help measure and quantify your company's performance and compliance with established objectives. It is recommended that when defining the logistics KPIs, they are developed based on the S.M.A.R.T. (Smart, Mmeasurable, Achivable, Realistic and Time-Bound) model.
Shorter return times: As mentioned before in relation to the Customer Centric strategy, it is essential to know not only the limits of our company in terms of acceptable delivery or return times, but also the “deadlines” or desired deadlines of our customers. For this reason, and in general terms, it should be prioritized that collection and return times are as short as possible and without the need to increase the amount of resources associated with reverse logistics. Thus, specific efforts should be made to improve this particular process.
Proactive monitoring: Proactive monitoring 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.
Good proactive monitoring must have the possibility of monitoring the operation in real time and thus be able to view the progress of the operation live at all times. In addition, and in relation to the real-time monitoring of operations, it is essential that it incorporates sufficient functions that allow a timely reaction to possible failures or errors.
Non-intelligent warehouses or Smart Storage: Smart warehouses are specialized logistics centers that make use of technology to increase efficiency in all their processes, such as the reception, preparation or storage of goods.
An example of the use and benefit of implementing intelligent warehouses in the reverse logistics process is the case of Amazon, a company that has included artificial intelligence in its warehouses in order to quickly determine, based on the costs of each product and its associated return costs, if it accepts to pick up the product in question by activating the reverse logistics process or, on the contrary, makes the refund without the collection of said merchandise.
If you want to guarantee the success of your company's reverse logistics process, you can do so now with the specialized SmartMonkey Planner software. Try it free for 10 days, for a limited time only.
Las delivery tests, also known in English as Proof of Delivery (PoD), are the set of all the information related to the delivery of a package or the performance of a service.
Its use is increasingly widespread in logistics operations, since it certifies deliveries and/or services in a satisfactory manner, both for companies and for the customers themselves.
PEE or electronic proof of delivery (PoD)
In an increasingly digitized context that requires increasingly immediate processes, it is essential to incorporate mechanisms and tools that advance in the same way as operational requirements. For this reason, the use of PEE or, in other words, electronic proof of delivery is currently essential.
PEEs are the digital proof through which an individual or company certifies that they have received a good or service.
In this way, these PEEs support the execution of a delivery or service, certifying variables such as time, location, name of the receiver, the receiver's signature and even photographs.
Thanks to the incorporation of proof of delivery into the operation, the companies that carry out the service or delivery can access all the documentation electronically, in order to quickly verify that the operation has been carried out correctly.
Nowadays, digital proof of delivery is already part of the vast majority of companies in the logistics sector, as they are the mechanisms that help us to provide greater control of the last mile process quickly and efficiently.
Benefits of digital proof of delivery
As mentioned above, the main advantage of digital delivery tests is the absolute control of the process of delivering or performing a service immediately. However, they also have multiple other advantages. Here are some of them:
- Productivity: the use of digital proof of delivery speeds up the delivery process, since times are shortened in addition to also facilitating information management.
- Increased information: The amount of information collected in digital proof of delivery is greater than on paper, since there is limited capacity in paper form.
- Photographs: with digital proof of delivery, it is possible to add photographs of the time of delivery or completion of the service instantly.
- Reducing costs: with the addition of tools that allow digital delivery tests, all costs associated with the storage of analog proof of delivery (personnel, space, etc.) are eliminated.
- Efficiency: with the inclusion of digital proof of delivery, we will avoid possible human errors such as the loss of documentation or possible confusion.
- Sustainability: betting on methods that help improve the sustainability of our company is increasingly important and this is precisely another advantage of digital proof of delivery, since it encourages the elimination of the use of single-use paper by digital and more sustainable alternatives.
The multiple uses of proof of delivery
Now that you know what proof of delivery is and what all their advantages are, we'll show you some of their many uses.
- Traceability: not only in the process of delivering an order, in which the proof of delivery certifies the delivery of the order, both for the delivery company and for the customer, but also in the performance of services. An example of this is the case of a company dedicated to the provision of cleaning services: in this particular case, the company that performs the cleaning certifies that the cleaning has been carried out correctly, sending one or more photographs both to the user receiving said service and to its own company. In this way, both users and entrepreneurs are instantly certain that the service has been successfully performed.
- Comprehensive control: It is common for Horeca channel distribution companies to change at the time of delivery due to a multitude of possibilities: products in poor condition, unwanted, etc. In this case, and thanks to the proof of delivery, the total quantity of products received is reflected, as well as the characteristics of each of them. All of this can be automatically synchronized with the ERP, in order to update the customer's final billing and reduce to a matter of seconds an operation that, without digital proof of delivery, could be extended to days, billing errors and an endless number of calls and office work and a delay in the collection of the goods, with the consequent financial cost for the distribution company.
- Proactive monitoring: Another of the uses, while the great advantage of including proof of delivery in our operations, is precisely its use when it comes to traceability in real time. An example of this is the case in which the logistics manager of the operation may be controlling and monitoring the status of the deliveries in real time and, in this way, be able to observe if there are delays or if there have been any problems at the time of delivery that can be corrected.
Do you want to know how you can incorporate proof of delivery into your operations and you don't know how? Very easy! In Routal Planner we have delivery tests and a multitude of other features. Sign up now and enjoy all of them thanks to our free trial period.
If you want to know more about proactive monitoring, access our article “Optimize delivery management with proactive monitoring” and discover all its advantages.
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.
Learn about other effective methods to combat failed deliveries in our article “Optimize delivery management with proactive monitoring”.
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.
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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.
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