Explainer: Building a high-performing last-mile delivery software

Opinion

Dec 20, 20236 mins

CIOSoftware DevelopmentTransportation and Logistics Industry

CIOs and software developers must add the following features to their last-mile delivery software to cater to the growing influx of data.

Last-mile troubles and unforeseen complications can crop up at times and cause unexpected delays. This has put immense pressure on IT leaders to deploy the best last-mile delivery software to safely and accurately transfer packages. This is the most crucial aspect in the entire delivery process as it directly influences the end user. The staff monitoring the logistics management systems are at their wit’s end, trying to compensate for the lost time.

No matter how the pandemic has increased the workloads, last-mile delivery was always a propelling industry before the crisis. The global delivery software market is expected to reach USD 3113.16 million by 2028, growing at a CAGR of 7.35% from 2023 to 2028.

The ongoing circumstances following up to the times ahead will only increase the workload for CIOs and data analysts in this line of business. Therefore, businesses must adhere to advanced tools that can accommodate the growing influx of data. Here is a list of the top features to include in a delivery management software solution.

#1 Auto-assignment of dispatches

It is easier to make deliveries when fleet assignments are automatically segregated and decided beforehand. Since the last mile process is highly agile, CIOs must ensure the software systems have built-in deep learning capabilities to make in-the-moment decisions. Auto-assignment and fleet scheduling are common features in last-mile delivery software apps. After aggregating a driver’s availability at a particular time and location, the auto-scheduler performs instant delegation of delivery tasks. The idea is to align the closest possible fleet for sooner pick & drop. In some business cases, the allocation is also determined by customer preferences.

For example, Uber and Zomato use a deep learning algorithm that considers driver location and overall ratings while mapping them to particular orders/bookings. So customers with high rating areas with equally qualified drivers.

#2 Qualitative payment systems integration

Qualitative payment systems integration is critical in last-mile delivery software, serving as a cornerstone for driving customer engagement. This integration brings forth a suite of tangible benefits. Seamless checkout processes ensure an enhanced level of convenience, reducing friction and ensuring a hassle-free experience. Offering diverse payment options expands the customer base and encourages recurring transactions.

Implementing robust security measures fosters trust, nurtures customer loyalty, and strengthens brand reputation. Optimizing service efficiency with smooth, rapid transactions elevates overall customer satisfaction. The system’s adaptability to evolving payment trends ensures continual relevance, ensuring sustained customer satisfaction over time.

I got a chance to discuss the latest trends in this industry earlier this year with Anatoly Makeshin. He founded Njoy Payments, an authorized Latvian institution offering various services, including credit and debit card processing and international payment acceptance. He said, “What companies should care about the most is connecting merchants to all the payment methods they deem necessary to boost sales. Debit and credit are already established, and BNPL has also become a must-have. With 10% penetration in European e-commerce, BNPL remains a popular choice among consumers.”

#3 Automated delivery date notifications

Once the package is out for delivery, advanced delivery management systems keep a tab on in-the-moment updates about the transit. Subsequently, they share the exact location details of the fleet with the customer through push notifications. Informing the customer about the delivery date and time in advance helps in multiple ways.

While developing your last-mile delivery software, CIOs can customize the frequency and the type of alerts. Ideally, the software notifies the customer frequently as soon as the package is in transit. For example, sending alerts when:

The driver has left the warehouse or the pickup location,

The driver has entered a certain geographic area,

The driver is not able to deliver on time due to unavoidable circumstances.

Delivery systems release push notifications based on the type of orders and the customer (such as regular premium, etc.) to ensure a seamless experience.

#4 Electronic Proof-of-Delivery (ePoD)

Amidst the growing demand for contactless operations, Electronic Proof-of-Delivery (ePoD) is an essential feature for advanced digital freight forwarding solutions. Here, the customers sign the receipts electronically, reducing the physical contact with the delivery executive. Among other precautions, contactless deliveries through ePoD features topped the charts in 2020. Logistics services increased their budgets overnight to provide the delivery executives with needed infrastructure. Interestingly, with ePoD, services can achieve end-to-end digitization of delivery – from ordering and paying to confirming receipts.

Delivery management systems deploy ePoD in one of the following ways:

Digital signatures

OTPs are received on the customer’s phone once the delivery executive marks success on their CRM. Call confirmation to the back-end team.

#5 Upselling delivery products based on past purchases

The delivery service software is an integral part of an e-commerce CRM system. It provides insightful data on past purchases and usual search trends on the e-commerce site. For example, Uber offers premium services to customers based on their booking record of accomplishment. Similarly, FedEx offers a discount on shipping costs after the customer has used the service several times. Accordingly, the system releases recommendations to upsell to the customer. The system automatically collects the data based on your internet searches and the products you order. Let me explain why CIOs should implement this in their software.

If you have been purchasing a particular product in the past few months, then the delivery executive can carry a similar related product along and introduce it to the customer. The customer may decide to purchase the related products when seeing them. This is called delivery upselling and articles are brought to the customer’s doorstep. Since a delivery management system hosts a mammoth of customer data, it provides a lucrative opportunity to enhance the revenue model.

Conclusion

Delivering isn’t just about packages; it’s about the experience. We all know that all delivery apps, be it food, pharma, grocery, or B2B transfers, generally offer the same service. It’s the robustness of delivery systems that make the difference. As discussed above, CIOs should focus on UX to enable seamless dispatch processing. There’s more to it.