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6 Ways Your Delivery Team Can Effectively Cut Costs

6 Ways Your Delivery Team Can Effectively Cut Costs

As a business, it’s essential to explore every way to cut costs while also staying efficient. If you’re able to maintain customer and employee satisfaction while also ensuring your business runs smoother, you can effectively scale your company. Use these strategies to improve your delivery team’s output while also saving yourself a bit of money.

Optimize Delivery Routes

The cost of the delivery is proportional to the distance between the two points. You can use route planning software as well as a GPS to make multi-stop routes more effective. Both technologies can also help you determine which delivery driver is closest to the destination.

You can use the route optimization feature in planning software in tandem with your GPS to establish the best route according to factors such as location, time, distance, driver capacity, and traffic.

When new deliveries come, the software can adjust by changing the routes while also notifying the driver as that occurs. You can even chat with drivers directly from these applications to ensure the driver is aware of changes as soon as possible.

Auto-Dispatch

Traditional dispatching involves the customer or manager to call into dispatch, then the dispatcher will have to call the driver to tell them the delivery location. This process can add days of wasted time better spent on making deliveries.

Uber uses an auto-dispatching service that asks the customers to pick and choose their driver and destination. In the meantime, the backend of the application matches customers with drivers that are closest to their area. Most industries can benefit from this same approach.

Proof of Delivery

Amazon and many other online retailers use proof of delivery as a way to tell their customers the item is waiting for them. On the delivery page, users can check if the package was left at their door, at the post office, or if the item was received and signed for.

Having this software in place will significantly reduce customer service calls. Your customers will always know if the item was delivered unless there is an issue (which is an excellent reason for your customers to contact you). Proof of delivery can further streamline the process by giving drivers access to photos, barcodes, signatures, and notes within seconds.

Offer Multiple Delivery Options

While you might assume that all customers would prefer same-day delivery, this often isn’t the case. An example of this would be a food subscription service. If the customer isn’t available to pick up the order, or if they want to have it delivered tomorrow, they are less inclined to purchase from you if you only offer same day shipping. Offering multiple delivery options will keep your customers happy.

As an alternative, the customer may not care if the item is delivered because they’ll just pick it up the next day at the post office. If this is the case, then it would waste time and money for you to rush out this delivery

Real-Time Updates and Order Tracking

Most of your customers like to know when they can expect a delivery and whether it will be early or delayed. With tracking software, businesses can inform their customers immediately with an estimated time of arrival and whether or not the delivery driver is on their way.

Real-Time Reports

Although it’s great to have real-time updates for your customers, it’s also essential for business owners to stay informed on their analytics. For example, if you know your miles per task, idle time, and average time per task, you’ll have an easier time improving these metrics.

Most software will show this data in graphical form so you and your team can analyze it better. You can also track each individual driver’s analytics so you can discuss how to improve these metrics in the long-term.


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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.