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Simple Strategies Amazon and Alibaba Use That Can Boost Your Logistics Company’s Growth

With the implementation of innovative tech as well as penetration of new product markets, big e-commerce players like Amazon and Alibaba have gained the reputation of being pillars in the on-demand delivery sector.

By creating an environment centred on visibility and flexibility, these companies have managed to gain competitive edge and assert themselves at the centre of the delivery ecosystem for many other companies around the world.

While Alibaba and Amazon are at the centre of the new digital retail, they’re both using very different strategies.

For instance, according to a Freightos article, “Alibaba connects global businesses and consumers as the world’s largest virtual middleman, while Amazon is a global player that controls everything from manufacturing to sales and physical logistics.”

But what does this mean for other companies? While this may mean that traditional retailers will have a harder time succeeding, it also gives plenty of reasons to think about evolution and alternative methods to improve your business.

In a recent article on the launch of Amazon in Singapore, we talked about how big players work as a great benefit for local businesses as more consumers get used to receiving goods on the same day, fact which pushes smaller companies to adopt alternative tactics.

To scale delivery operations, it’s important to find the right delivery management solution to ensure more efficient deliveries, and in order to accomplish this, using tech to streamline operations and dispatch orders automatically is a must.

But let’s take a look at some strategies big players are using that you can apply in a different measure.

What Amazon does:

Empowers customers to have visibility and control over orders

Image credit: Amazon

Right from the beginning, Amazon identified what the industry lacked and understood consumer needs perfectly. This is why the company started off with a service called “local express delivery” in the US, which later on expanded considerably. The service proved to be the foundation of their overall strategy to maximize efficiency at each step of the supply chain.

What’s more, the company identified different potential product verticals that would scale the business, which is why they chose to try out new product markets where there’s still ample space for growth.

And by launching same-day delivery service, Amazon’s volume of deliveries sky-rocketed hence they needed full visibility over their orders. That translated into knowing exactly which items are out on trucks, which trucks they are in, and where they are in the delivery process.

Giving customers visibility over their delivery: when it’s on its way, real-time tracking of the driver, precise ETAs, and notifications of when it has arrived are all things that consumers now expect.

What your company can do:

Implement a platform that offers control and live tracking

This type of disruption caused by Amazon is positive as it can only push smaller businesses to adapt to change through a new level of speed and flexibility.

As a small company that wants to succeed and gain competitive edge in a landscape where companies like Amazon thrive, it’s important to use a system that allows you to have full control of your operations.

The most important aspect of your deliveries is having visibility over your deliveries and drivers in real-time. By using a delivery management system, your company will not only have access to such features but also provide your drivers with an easy-to-use app which gives you the ability to communicate directly with the driver, and monitor them once till delivery is completed.

What Alibaba does:

Invests in a digital strategy

The Chinese e-commerce giant increased its stake in logistics firm Cainiao, aiming to begin delivering orders on the mainland within 24 hour.

According to an article in TodayOnline, “China’s market is more labour intensive and has obstacles like inaccurate post codes, for example, and in the rapidly growing cities new addresses are appearing all the time.

By standardising addresses and using digital labelling codes, Cainiao has cut time, costs and errors in delivery. Eliminating paper printing in favour of coded e-shipping labels saved almost a fifth of the courier’s estimated 0.54 yuan operating income per package.”

What your company can do:

Use Proof of Delivery (POD) to reduce disputes

This is an essential component of the delivery as it serves as an important acknowledgment to mark that the delivery has been completed. By using the POD feature available, not only do companies have the assurance that packages were delivered successfully, they can also track the progress of the delivery.

This helps companies identify potential issues before they become major liabilities. A POD is a fast-growing trend that more companies are implementing into their delivery workflows to make the processes hassle-free.

What Amazon does:

Created Amazon Flex

Image credit: Amazon

Amazon’s sales revenue has been increasing every year but that didn’t stop the company to adopt new strategies. With Amazon Flex, which initially was started in Seattle, Amazon took the on-demand era to last-mile fulfillment.

The service is an outgrowth “sharing economy,” in which independent drivers, like Uber, can go to a local Amazon warehouse, grab a package and deliver it to its final destination.

This service is interesting as it could help Amazon cope with holiday high-demand and other situations where conventional services aren’t up to the job. This means, Amazon is creating an alternative ecosystem which can create a high fullfilment rate.

What your company can do:

Build a healthy last-mile ecosystem

Companies can then build a healthy last-mile ecosystem by expanding their networks and tapping into a hybrid fleet to drive cost down. Last-mile can become a sustainable ecosystem where your very own fleet and partnerships with local delivery companies are successfully growing your delivery logistics.

If properly managed, this scenario can offer companies the flexibility to scale the business needs and use multiple resources that fit increased demand across multiple locations.

How to adopt new strategies

To scale delivery operations, it’s important to find the right delivery management solution to ensure more efficient deliveries. In order to accomplish this, using tech to streamline operations and dispatch orders automatically is a must.

To streamline operations and ensure that deliveries are timely, it’s crucial to leverage your services with tech to facilitate delivery speed as well as better manage the distribution of orders. It’s important to look for a solution that is flexible enough to be layered on top of existing technology to level-up the management of drivers and the order optimization.

Case Study: This is How Unioil Gained Visibility Over Drivers

Company name: Unioil
Industry: Oil and gas distribution
Location: Philippines
Background: Leading the way in innovative petroleum solutions since 1966

Company background

Unioil Petroleum Philippines is a well-known brand in Philippines, which offers oil and gas distribution. As a strategic business partner in the field of petroleum products, Unioil supplies the petroleum and power needs of various market segments.

Aside from the Unioil lubricant brand, the company also fosters strategic global alliances with various oil and petroleum companies throughout the world.

What were the challenges the company faced?

Unioil has a large number of distributions per day, and the company needs to pick up oil from different locations by driving across the country.

The company owns a fleet of 30 trucks, but also regularly works with contractors that help fulfill order transportation.

Because of the large number of deliveries that needed an extra batch of drivers, the company made the decision to work with more contractors. The operations team then started feeling challenged when they couldn’t properly track the status of the orders on-the-go.

Current challenges:

→ Tracking contractors and freelance drivers is difficult

→ Lack of POD (Proof-of-Delivery) to expedite deliveries and make the process more efficient

→ Collecting payments needs to be improved

What was the solution?

After running an initial trial with CarPal, Unioil decided to integrate the CarPal delivery management system into their current solution, enabling the company to connect order management with delivery management and optimization – while providing full visibility and a superior customer experience across the entire operation.

Unioil’s partnership with CarPal had an immediate impact in the operations department, especially as the company made full use of the real-time tracking from the beginning.

This new layer of transparency and visibility across the operations helped Unioil manage their fleets of contractors more effectively, and provided their customers with the much-needed visibility and control.

With our cloud-based software, Unioil can now easily track their contractors – and make the process insightful along the way by collecting relevant data and analytics that help forecast future deliveries.

The drivers will be able to use the CarPal Driver App and use functions like the Start, Pause and Stop buttons throughout the delivery, which help identify each stage the delivery is at.

Another advantage of using our platform is that even when the app goes offline due to lack of internet (Philippines is comprised of many islands, hence infrastructure and internet connection can be a challenge at times), the app will continue capturing information offline and push the data to our system at the moment the connection comes back.

What were the results?

Unioil started their operations working with in-house drivers. However, for their lubricant business, they hired subcontractors which are responsible for picking up the product from warehouses and sending it to customers. The next question was: how do you track these contractors?

That’s why the company decided to integrate CarPal’s delivery management platform – which helped them optimize their logistics, offer full transparency to their customers and seamlessly connect with their existing systems from the beginning.

Unioil was looking for three key attributes in a delivery management platform:

→ Efficiency and optimization

→ Tighter control and visibility over contractors and freelancers

→ A reliable system, which acts as a “control tower” so that the company can manage all operations from one place

CarPal not only ticked all these requirements, but also gave Unioil the ability to schedule multiple way-points which helped the company optimize their operations even further.

With CarPal, Unioil can follow their trucks via the web dashboard, know the ETAs for all orders in real time and white-label the entire system to match their branding.

The frictionless awareness of CarPal’s dashboard means that the team can check the status of all drivers and all orders in the “control tower” without wasting time or disrupting drivers.

This resulted in a decrease in phone calls to the operations team – and improving business efficiency and customer service simultaneously.

Having a robust solution that could handle unlimited queries was crucial for Unioil as they grow nationally.

CarPal’s scalability makes the company future-proof so it can grow as the business continues to expand.

The takeaway

CarPal’s platform has helped Unioil optimize and track deliveries efficiently and has generated more efficiency per driver per day through increased routing efficiency and direct tracking.

Also, after implementation, Unioil keeps an open dialogue with CarPal on a regular basis. This has resulted in new features on the CarPal platform which are now used by Unioil as well as other CarPal customers in similar use cases.

In addition, Unioil is also using CarPal as the main source of their driver insights, analytics and accounting.

By inputting all orders into the CarPal dashboard, the company gets a first-hand glimpse into what’s happening with the operations at any given time – from the current location of its drivers to the monthly finances.

Using CarPal’s dashboard, Unioil is now able to optimize the logistics planning and assign orders based on how drivers are progressing in real time.

While Unioil just started working with CarPal’s system this year, the company saw immediate results in terms of efficiency and costs. And with the delivery management software in place, the company manages to quickly optimize their operational logistics!

How Proof of Delivery Helps Reduce Friction Between Businesses and Customers

In today’s delivery sector, at least 20-25% of consumers would be willing to pay significant premiums for a same-day delivery, fact which prompts more companies to close the gap between customer satisfaction and businesses by offering topnotch services.

Through tech platforms which provide smartphone apps, more companies can offer these type of services and provide a more satisfactory and efficient delivery experience.

One feature which helps create a better delivery experience and reduces disputes between companies and consumers is Proof of Delivery, which you can leverage to compete in the on-demand economy.

What is Proof of Delivery?

A Proof of Delivery (POD) is an essential component of the delivery as it serves as an important acknowledgment to mark that the delivery has been completed.

By using the POD feature available in the Driver App, not only do companies have the assurance that packages were delivered successfully, they can also track the progress of the delivery. This helps companies identify potential issues before they become major liabilities.

A POD is a fast-growing trend that more companies are implementing into their delivery workflows to make the processes hassle-free.

Proof of Delivery (POD) is a document that confirms receipt of an item. Recipients must sign for receipt of the mail indicating the date when the mail item was delivered to them. A copy of the Proof of Delivery receipt is provided to the sender.

How do I use the POD function?

In order to complete the job, the driver has the customer to sign on your app or take a photo as Proof of Delivery
Click Sign and have the customer to sign with their finger, and click “Sign” on top left corner to save
Click Photo to take a photo of the item and the recipient/location
Click Barcode to scan the item

Why is POD important?

PODs will save organizations time and prevent frictions between customers and businesses.

Drivers can capture customer signatures, photos, and text notes through the POD feature in the Driver App. The attachments will sync to orders within the web dashboard, making it easy for your operations team to collect and store information.

With easy access to Proof of Delivery files, your company will easily be able to you can ensure that there are no disputes between your organization and customers as well as improve customer service and stay organized.

With POD, your team can manage the last-mile more efficiently and reduce friction throughout the day to keep your drivers, operations team and customers satisfied!

Benefits of using POD

reduce friction and potential disputes between companies and consumers
monitor driver accountability
eliminate unnecessary paperwork from your operations

If customers need proof of delivery, you can easily stay connected to your drivers’ recorded details and check customer accounts and access files, notes, answer questions, or confirm delivery was completed.

Steps to use POD

Add Images
You can add images as proof of delivery as well; you can upload an image or take a new picture.

Add Signature

Click on add signature to allow the customer to e-sign.

Proof of Delivery provides real-time information on the movement of drivers, guaranteeing traceability and control across the entire delivery process.

You can also use the scanning function to confirm that the order has been delivered.

Alternative ways to monitor deliveries

Having full visibility over last-mile delivery means that your operations team will not only be able to track and monitor deliveries in real time, but also be able to anticipate potential disputes and liabilities between companies and consumers.

In order to optimize last-mile delivery operations, items need to be scanned prior to being delivered. This way, your company will have full control and be able to track exactly which items are on which trucks and where they are on their routes.

Waybill

With our delivery management software, after placing the order, you also have the option to download Waybill, which will be used by the driver to identify which items belong to an order as well as contain a barcode for scanning.

A WayBill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods.

Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route.

Barcode scanning

For companies that prefer to track their delivery items through barcode or QR code scanning, there are more tracking options.

The driver app is equipped with the technology to upload scanning throughout the entire delivery journey from the moment goods leave the warehouse until they are delivered to the end recipients.

Conclusion

Because of today’s mobile tech, customers can track individual packages in real time and validate deliveries. For companies offering these services, the ability to access information on-the-go and know where the packages are at all times can result in a smooth delivery experience.

As more companies are dealing with a high volume of deliveries, it’s important that records are kept when a delivery is being completed. This includes requiring your driver to get a signature and scanning of a barcode prior to leaving the delivery location. That information then is sent to a central system and logged and remains as proof in case the customer makes a claim that the item was not delivered!

How do you get your staff on board with new tech platforms?

The logistics industry has been evolving at a rapid pace, and innovation has taken centre stage in order for companies of all sizes to thrive and become more successful.

What’s even more interesting is that traditional companies realized this major movement is becoming more prevalent and had to adapt, and even change their business model to compete with bigger players.

It’s known that the on-demand economy is gaining momentum and has considerably disrupted the way organizations work.

Today, more companies have started considering an on-demand delivery model as they have realized they needed to cater to the market needs to provide better services and more transparency in last-mile delivery.

This is a great opportunity which gives companies the possibility of easily responding to customer requests on the spot while maintaining high quality standards due to technology.

But in order for a company to thrive, it’s not only needed to adopt new tech to make your processes more efficient, but one of the most important aspects is how employees adapt to change and what it’s needed to make the transition smoother.

Your workforce becomes a definitive factor after layering tech on top of your existing solution, who has to learn to adapt to change, and start influencing how technology is used in you organization.

With such an innovative workforce, the next years will experience changes that will prove to be truly disruptive!

Here’s what you can consider doing before implementing a tech solution within your organization.

Present the top benefits of the product and how it will help them

In a Harvard Business Review article on why employees are skeptical on tech changes, it’s highlighted that “there are always some people who have their routines, and they just don’t want to change. That [attitude] persists as long as the organization permits it.”

In order to get employees to use a new product, employers need to present them a few selling points.

According to the article, managers need to “demonstrate that the new service offers economic and rational benefits for the organization and the individual. Perhaps it will help the company quantify its marketing efforts; maybe it will enable employees to track customer data more easily. Help employees understand what’s in it for them.”

In the case of adapting a delivery management software within your organization, it’s important to align your vision with the operations team and your fleet of drivers. Basically this means, preparing them even before starting to use the product by presenting how it’ll make their life better.

For the operations team, this translates into:

simplifying operations and creating more efficiency in your workflows
being able to do real-time tracking and having full control and transparency into orders
having an overview of bulk orders into a single spreadsheet that can be automatically uploaded in the system

Create a new vision and share it with your staff

In a previous article on the on-demand delivery software benefits, we’ve highlighted that the on-demand delivery sector is driving businesses to adopt different strategies when it comes to their operations.

It’s important to know that in the tech world, staff wants to work faster, smarter and more efficiently. This is why many companies choose to redesign the way they operate on a daily basis, cutting extra steps from their workflows to give better results to clients.

It is important to create a vision that is aligned with your own goals as a manager of the organization.

Unifying your goals with your team’s and promoting your new vision may be difficult in the beginning, but you have to constantly ensure your team that the new work style will only bring them benefits.

If you’d like to learn more about the benefits of using a delivery management software, you can also check out this article.

To implement this new vision, you have to clearly articulate it and even spend a few meetings to address all the queries and doubts from your staff.

Focus on training

Many logistics companies are still quite traditional and use old school methods. Many may say that “paper is king”, but in order to thrive, managers need to start addressing the current workflows in your organization and slowly start shifting mentalities to become more efficient.

As a manager, you can start by asking a few questions:

–> How will a software help the organization and staff?

–> What is the new workflow going to look like?

–> What are the new responsibilities of the staff using the software?

Prepare a short discussion or briefing for each step in the new workflow which should highlight how it will impact them first-hand. This means, sharing that the new technology features a series of benefits that will help each member of the team.

Having clarity about the product’s benefits is important as it will prevent confusions!

Close the gap between drivers and operations

A potential issue might be that your drivers don’t think that technology can make their jobs easier although the current workflows are inefficient, but the truth is technology is a requirement to compete in the present logistics industry.

Just think about a few benefits that will help your drivers manage their deliveries easier:

Drivers can easily access an app where they have an overview of all orders on-the-go
Drivers can use features like electronic proof-of-delivery (e-POD), e-signing options and barcode scanning and forget about manual processes
Drivers can use CarPal Driver App to navigate to the specified location
They can easily communicate with the employer for any issue/problem happening during delivery
Through the app, drivers can also communicate directly with the client

Disrupting your drivers from the old way of doing things (although inefficient) may not be an easy feat, but the results will be tremendous.

Also, one important aspect you should keep in mind is ensuring your drivers use mobile phones that are compatible with the current technology. For instance, the type of smartphone the driver is using will be automatically detected and the suitable version of the app will be downloaded (iOS and Android).

Do note that the minimum supported OS version for Android is 5.0 and the minimum OS version for iPhone is 9.0. As soon as you have added the driver, you can start assigning jobs to them!

Through an intuitive delivery management software, you will manage to change the way your operations are managed by making the process leaner, saving time and costs, and providing your customers with a topnotch service.

Once your team understands how easy it is to incorporate technology into their workflow, and how much easier their lives will become, they will definitely want to change the way they operate on a daily basis!

Case Study: How Boske Switched from a Traditional to a Cloud-Based Solution

Overview

When a large-scale company with an unpredictable volume of orders first started working with Boske, the company faced challenges such as lack of control and visibility over contractors and freelance drivers.

This prompted the company to change the way they operate and adapt a cloud-based solution and more control/visibility features.

Find out how CarPal has helped the company overcome this challenge and provide a solution that would also solve operational efficiency.

Company background

Family-owned business with more than 10 years of experience in logistics and transport

Company: Boske
Industry: Logistics; Freight Management Solutions
Location: Australia
Background: More than 10 years of tailored transport and logistics solutions

Boske is a family-owned business based in Australia, which focuses on local cartage for dedicated fleet management to the South East & Central Queensland regions.

The company is managed by experienced industry professionals with collective management experience across the supply chain such as distribution, heavy vehicle operations, warehousing, logistics, 3pl, import, retail and airfreight operations, who understand client needs and value business partnerships.

Boske’s mission has always been to provide an effective distribution centre, and as the company has been experiencing growth by working with large companies, it also started facing different challenges which called for shifting its perspective on implementing a tech solution.

Challenges

Inefficient manual processes

Physical servers that are difficult and expensive to maintain

Lack of control over contractors and freelance drivers who work on hourly pay

Boske has a comprehensive fleet comprised of full-time drivers, offering a broad range of transportation management services to many clients in Australia. The company also works with individual contractors and some 60 freelance drivers.

Their main challenge appeared when a large logistics company with an unpredictable order volume started working with them on a regular basis, so the company had to double its driver resources and engage the services of contractors other than use its own fleet.

The next question was:

How can the company serve this type of customers whilst maintaining the same level of visibility and control as for its very own fleet?

Another issue on top of not being able to control its contractors properly, which kept the company “in darkness”, was that Boske was working with a non-cloud system, which caused frequent technical problems thus making the entire process inefficient.

“We were always having issues with the slow system and if it happened to crash, it was a nightmare to bring it back online.” Operations Manager at Boske

Solution

Agile, cloud-based solution that offers flexibility and reduces maintenance costs

Control and visibility over contractors who are paid by the hour through Stop/Pause button when drivers need to take a break

Omni-channel access, allowing teams to access data anywhere, anytime

Having to rely on a system that was not cloud-based, but a physical, bulky hardware in their office, which often caused server failures, Boske would miss out on the flexibility a cloud solution offers.

After switching to a cloud-based software, some of the immediate benefits were:

Eliminating the data centre, not having to invest in equipment such as hardware and utilities thus reducing costs

Working with improved mobility being able to access data, anytime and anywhere

Improved collaboration as the cloud allows teams to share data in real time and via shared storage

Mobility, meaning that data is available to employees anywhere they are based

In order to solve their challenges on lack of transparency, visibility and efficiency as well as stay ahead of competitors, Boske decided to integrate an innovative delivery management software into their operations, wishing to bridge the gap between operations and tech.

CarPal proposed a cloud-based, easy-to-use solution that can be quickly set up, which offers features like live tracking, route optimization, sms notifications and order management. As the software is omni-channel, using mobile technology meant that the company doesn’t have to further invest in hardware.

CarPal has set up the delivery management system for Boske within two days, removing any concern about having to deal with physical servers which become expensive to maintain.

Also, with no maintenance cost and a permanent tech team to support them throughout their journey, it was a big leap forward for the Australian company to perform their tasks with ease.

One of the features that proved to be extremely useful for Boske was the Start/Pause button in the driver app, which allows drivers to take a ‘break’ due to fatigue when driving for many hours.

As the company has to manage contractors and freelancers who are paid by the hour, having visibility into their daily itineraries is a crucial aspect to keep operations lean.

Result

Boske began to see their biggest benefit almost immediately after starting to use CarPal: time and cost saved.

With CarPal up and running, a great ROI in the form of time and money were saved. Since Boske was very hands-on in the setup process with CarPal support, they were able to set it up exactly how they wanted and needed it.

Thanks to that understanding, they now feel that they can easily track their drivers efficiently – resulting in major time and cost savings every day!

Compared to the many hours spent processing orders and invoices for clients manually and having no transparency into what their freelance drivers and contractors were doing, they now only spend a few minutes managing orders online throughout the day. Besides, anyone within their organization can easily access the software.

After starting to use CarPal’s delivery management software on a daily basis, the company was also able to be more effective in other spheres of the business, freeing them up to advance the business in other different ways.

Why Boske loves CarPal

Easy-to-use, intuitive and agile cloud-based solution
Complete visibility and control over its own fleet, freelancers and contractors
Automated order management, tracking potential delays

The takeaway

For the same operational cost, Boske can now grow at a faster and more efficient pace, having the flexibility to manage more customers with unpredictable orders and not worry about how to control their trucks. The client has complete visibility and control over its drivers be them freelancers or contractors, and is satisfied by the fact that orders are professionally fulfilled.

How are companies adapting to logistics disruptions in Southeast Asia?

Logistics companies based in Southeast Asia are facing rapid change, as digitization is becoming more prevalent and customer expectations are higher.

Today, Southeast Asia is home to more than 600 million consumers, and some primary markets like Singapore, Indonesia, Thailand, Vietnam, Malaysia and the Philippines stand out as growing economies.

The digital era is also booming, and more consumers are using smartphones, expecting a level of consistency and visibility in delivery quality and speed, pushing organizations to innovate even higher. This is why, a new model of logistics has to align with the demand of these companies.

To reflect these trends, more events focus on tech, as more companies want to learn how to bridge the gap between operations and tech. CarPal strives to offer that kind of mix of service and tech, allowing companies to layer an innovative business model on top of their current one. One such event is TECHINNOVATION in Singapore, where CarPal will participate in September.

What are the catalysts of change in the logistics industry?

Other than consumers, there are other factors which are catalysts for change in the industry such as inefficient operations and speed of delivery. As online retail is booming, the volume of orders is also on the rise, which implicitly creates a surge in last-minute deliveries and on-demand requests.

Big players like Amazon and Alibaba are continuously changing the pace of the e-commerce landscape by offering a wealth of options. Due to this unpredictable volume in orders, many small companies are faced with unprecedented challenges and can easily lose out in the long-run due to the inability to fully-utilize their available resources.

This is why new, modern technologies emerge and are enabling greater efficiency and more collaborative operating models; they’re also re-shaping the industry in ways that are only just beginning to become apparent.

For instance, in Singapore alone, the recent launch of Amazon, may have caused disruption, but actually this could work as a great benefit for local businesses as more consumers become used to receiving goods on the same day, fact which pushes smaller companies to adopt alternative tactics.

In order to stay on top of their game, organizations know that they have to compete with the same levels of service like giant retailers provide, and even take it one step ahead – tapping on same-day delivery services to stand out.

How can smaller organizations thrive in this market?

CarPal has taken a step further to empower organizations by offering to layer a tech platform on top of existing business models. This sort of platform is a highly scalable tech platform, that can provide comprehensive analytics with granular visibility.

A study by PwC on the future of logistics, highlights that “all data about operations processes, process efficiency and quality management, as well as operations planning are available real-time, supported by augmented reality and optimize in an integrated network.

Horizontal integration stretches beyond the internal operations from suppliers to customers and all key value chain partners. It includes technologies from track-and-trace devices to real-time integrated planning.”

Image credit: PwC

This type of automation is likely to reshape the industry and strives to allow firms to offer faster service and save costs at the same time. For companies, automation through a delivery management software also means more control and visibility into deliveries.

Also, automated routing systems are now available and become the norm; with accurate algorithms which ensure that drivers complete most deliveries in the least amount of time and by taking the best routes, companies will be able to create a truly advanced end-to-end delivery platform, reducing fulfillment costs whilst delivering a top-notch experience.

Through tech platform, there’s also more control and visibility into deliveries, and having access to data is one of the most critical requirements for any business. This is why many experts will emphasize the importance of leveraging analytics to gain insight and uncover patterns related to processes, customers and trends.

What are the current challenges organizations face in this sector?

Today, some of the last-mile delivery challenges are the lack of new technology and automation, which leads back to lack of information on one hand and huge data loss.

To work smarter and faster, more businesses choose to tap on insights from data so they can then translate it into real actions and results. This is crucial as organizations can now make sure that they fulfill all customer interactions in terms of deliveries and services in the best way possible.

The workforce needs to become more tech-savvy

Organizations have started considering an on-demand delivery model as they have realized the market need to provide last-mile connectivity to consumers. This is a win-win situation which gives companies the possibility of easily responding to customer requests, while adhering to high quality standards.

But in order for a company to thrive in the tech world, the workforce has to learn to adapt to change, and start influencing how technology is used. With such an innovative workforce, the next years will experience changes that will prove to be highly disruptive!

How does the “control tower” help logistics companies improve operations?

What exactly is a control tower?

The concept of the “control tower” is increasingly becoming prevalent in the supply chain management and that means having the ability to track deliveries in real time, which in return helps make the delivery process more efficient.

A control tower is a hub for visibility, decision-making, and action, based on real-time analytics.

In last-mile delivery, there are challenges that businesses need to overcome like lack of visibility, allocation of drivers and speed as well as inefficiency. This means, companies will not only have to incorporate new tech, but also adopt new strategies so they don’t risk becoming irrelevant in this competitive market.

By creating an ecosystem which focuses on transparency, companies can have visibility into the order to reduce the risk of potential issues as well as gain data on how to better manage orders.

What are the control tower’s key features?

Control towers offer features like end-to-end visibility and advanced automation.

End-to-end visibility and control – visibility over the order, drivers and third party logistics partners
Real-time tracking – this can be done through smart devices and helps create an easy communication with drivers as well as allows having visibility and managing orders easily
Omni-channel access – have access to information on any device and be able to share it and collaborate in real-time
Data analytics – a delivery management software utilizes data analytics to efficiently direct the field workforce and last-mile delivery to their intended destinations, speeding up the delivery process while maintaining the quality of the delivery process.
Notifications and alerts on-the-go – quickly have the possibility to resolve disruptions before they disrupt your business

How can companies benefit from the control tower?

When issues occur, companies can make use of this concept through tech like delivery management softwares to get a live update or retrieve the necessary information without depending on third parties. Visibility ensures that they have the data to know exactly which actions to take at each step of the process.

Staff who are at the helm of the control tower can make informed decisions based on feedback received from this centralized system. By collecting data from the daily delivery processes, control towers also offer unique insight into performance.

With automated tools, staff can perform analyses to optimize decisions, pinpoint a process breakdown and manage orders better based on cycle times.

How can companies better manage their last-mile delivery?

Tech is transforming the supply chain considerably, offering more insight into what is happening at any time in the delivery process. Real-time visibility allows companies to identify potential issues and correct them before they escalate.

According to an in-depth article on the control tower written in PWC’s Strategy&, driving the transformation to the smart supply chain are two tightly intertwined trends.

On one hand, new technologies like big data analytics, the cloud, and the Internet of Things are pushing into the market.

On the other, more exacting expectations on the part of consumers, employees, and business partners are pulling companies to develop more reliable and responsive supply chains.

Image credit: PwC

Keeping up with the changes in the customer behaviour and maintaining a competitive cost are key challenges which many companies face today.

This is why a control tower acts as a centralized hub that uses real-time data from a company’s existing, integrated data management to integrate processes across the end-to-end last-mile delivery.

Re-imagining logistics requires adaptability and constantly ensuring you are aware of what the trends are in both the last-mile and tech environments.

This is why when real-time tech is coupled with traditional logistics business models, the result can be an intuitive, agile delivery operational workflow that will improve the performance of your business while allowing you to save cost at the same time.

EXHIBITION: SEAMLESS (27-28 September 2017, SMX Convention Center, Manila, Philippines)

CarPal is exhibiting at the upcoming SEAMLESS Philippines leading event and conference, which brings together leading minds, entrepreneurs and innovators across payments, e-commerce and retail sectors to allow new business opportunities and valuable connections to be made.

Date: 27-28 September 2017

CONFERENCE (ALL DAYS)

Conference Day 1: Wednesday 27 September 2017 08:30 – 17:00

Conference Day 2: Thursday 28 September 2017 08:30 – 17:00

EXHIBITION (ALL DAYS)

Exhibition Day 1: Wednesday 27 September 2017 10:00 – 17:00

Exhibition Day 2: Thursday 28 September 2017 10:00 – 17:00

Venue: SMX Convention Center, Manila, Philippines

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As Philippine’s leading event and conference, Seamless Philippines brings together leading minds, entrepreneurs and innovators across payments, e-commerce and retail sectors to allow new business opportunities and valuable connections to be made. Driven by generating genuine business connections, Seamless Philippines is committed to showcasing your products, ideas and innovations and ensuring they are shared with the right customers in a new and exciting way.

EXHIBITION: TECHINNOVATION (19-20 September 2017, Marina Bay Sands, Singapore)

CarPal is exhibiting at the upcoming TECHINNOVATION, a premier technology-industry brokerage event, which brings together international and Singapore technology providers and seekers to explore technology and business collaboration opportunities through open innovation. This year, over 120 exhibitors will be showcasing more than 300 emerging and ready-to-market technologies.

Date: 19 – 20 September 2017

Time: 8.30 am to 6.00 pm

Venue: Level 1, Halls A and B, Marina Bay Sands

Come join us and chat with our on-site associates to learn more about our innovative last-mile logistics services and solutions!

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TECHINNOVATION is a premier technology-industry brokerage event organised by IPI. It brings together international and Singapore technology providers and seekers to explore technology and business collaboration opportunities through open innovation. In its sixth year since its inception in 2012, it has grown to become a leading conference and exhibition in Singapore that focuses on the matching of industry’s needs to enabling technologies.

4 trends to look out for in logistics and last-mile delivery

The delivery landscape is progressing at an incredibly fast pace, and technology is at its centerstage, reshaping the entire supply chain into a more agile one as well as helping delight consumers along the way.

More companies are becoming smarter at managing omni-channel fulfilment processes, so it means they will progress from simply delivering items to innovating and ultimately changing the efficiency in the last-mile.

Being aware of the current logistics and last-mile trends will make a huge difference to businesses given the speed at which technology can disrupt the way companies operate.

1. Same-day delivery becomes the norm

It’s known that Uber has disrupted the taxi industry considerably, changing the way consumers move around the city. On the other hand, big players in retail and eCommerce are also disrupting the industry by offering same-day delivery. One great example is Amazon, which has disrupted the delivery sector, pushing smaller players to change the way they work.

In order to stay relevant, companies know that they have to compete with the same levels of service like giant retailers provide, and even take it one step further, which is why they will decide to tap on same-day delivery services to stand out.

2. A mix of technology and service

To scale, companies will feel compelled to become automated and that means only one thing: integrating tech into their system. To stay relevant these days, companies have to focus on finding the right delivery management solution to ensure more efficient deliveries. In order to accomplish this, using tech to streamline operations and manage orders automatically is a must.

In order to streamline operations and ensure that deliveries are timely, it’s crucial to leverage your services with tech to facilitate delivery speed as well as better manage the distribution of orders.

It’s important to look for a solution that is flexible enough to be layered on top of existing technology to level-up the management of drivers and the optimization of orders.

Real-time tracking through smart devices is crucial, but also focusing on automated operations and smooth communication with drivers are important things to note here.

3. The concept of the “control tower”

The concept of the “control tower” is increasingly becoming prevalent in the supply chain management and that means having the ability to track deliveries in real time, which in return helps make the delivery process more efficient.

By creating a transparent environment which focuses on transparency, companies can be aware of the status of the orders from door-to-door, this reducing the risk of potential issues as well as gaining data on how to better manage orders.

If there are issues, companies have the right resources to get a live status update or retrieve the necessary information without depending on third parties. Visibility ensures that they have the data to know exactly which actions to take at each step of the process.

4. The use of in-house fleets and third party contractors

A great number of companies use either in-house or third party services, but it’s not always the most optimal solution.

For many companies, being in full control of their operations is essential, which is why the idea of owning a fleet or even working exclusively with a delivery partner seems to be the desired solution. However, there are immediate limitations to this business model, such as relying on your own fleet reduces the chance of workforce growth as soon as the business demands it.

So what are the main features to look for in a fleet?

Transparency
Accountability
Retaining brand image
Flexibility

Many of the hurdles about choosing the right strategy for your delivery operations can be solved by tapping into partner companies, partner fleets and partner drivers to operate successfully in an open and flexible environment.

This idea is opening up great opportunities, allowing companies to grow their business with an unprecedented level of freedom, flexibility and scalability, pushing businesses to leverage already-existing technologies that can be layered on top of their current infrastructure.