How smart dispatch management tech can empower third-party logistics to bring predictability, transparency

Outsourcing last-mile delivery to third-party logistics can help a company focus on core business operations as well as reduce delivery times and costs. Many brands do this, which is why global revenue in the Third-Party Logistics (3PL) market is projected to reach $1.21 trillion in 2023.

However, third-party logistics providers suffer from challenges like reduced visibility, hindered communication,  disruptive events due to uncertainties, and low flexibility to account for last-minute changes. The challenges would be obvious to the 3PLs, but solving these challenges could be a brain teaser for them.

Cutting edge technologies are outpacing the legacy systems used to tackle logistics challenges and are revolutionising the last mile industry. These technologies can help third-party logistics companies enhance delivery experience for brands and the end customers by providing them with predictability and transparency.

Dispatch management system bringing transparency, predictability to 3PL models

Technologically equipped third-party logistics providers allow brands to enhance last mile delivery experience with route optimisation, live tracking, and efficient resource utilisation across multiple fulfillment channels and models. In this effort, a dynamic dispatch management platform can help logistics companies in the following ways:

Capacity Management

Capacity planning is key to fulfilling large volumes of orders and retailers are overloaded with orders during festival and holiday seasons and 3PLs need to be ready to accommodate this load from the brands. Unlike a legacy capacity management solution, a smart capacity planning solution can account for drivers’ time off and help with optimal resource allocation and utilisation leading to better predictability for 3PLs.

Smart Routing

A dispatching software integrated with a smart routing engine is key to predictability for third-party logistics companies. A routing solution that provides dynamic routing, which takes into consideration 180+ real world constraints to devise a fastest route for drivers to deliver orders.

Automated Exception Handling and Fleet Tracking

The solution enables courier companies to keep track of their fleet and gain active control over them in any point of the fulfillment journey. Any exceptions like route deviations and unscheduled halts can easily be rectified by dispatcher, leading to smoother fulfillments and better customer experience.

End-to-end visibility

A smart dispatch management system is integrated with tracking features that provide customers with an estimated time of arrival (ETA) on the tracking page along with a turn-by-turn navigation. If there are any unexpected delays from the drivers’ end, customers will be notified immediately through automated notification via mobile, web, and email for increased transparency.

Providing powerful delivery experiences

Consumers want to stay informed about order updates in real-time as well as keep track of potential disruptions, and post-purchase offerings for accurate ETAs. With a smart dispatch management software, third-party logistics providers can ensure real-time updates to customers about offering a delightful post-purchase customer experience by resolving queries and concerns, providing insights and recommendations, and extending a branded experience with consistent tracking and agile delivery. Additionally, the smart software informs logistics providers about distance travelled, fleet utilised, and planning time to optimise delivery routes, reduce carbon emissions, and drive sustainable growth through eco-friendly logistics practices.

Conclusion

As buying preferences evolve, logistics providers focus more on stellar customer service and streamlined order management. They want to offer lower delivery costs, improved shipping times, and increased flexibility to bring efficiency and profitability to brands. On the other hand, customers seek greater transparency, regular delivery updates, and real-time consumer support to satisfy their queries and predict the delivery timeframe.

A tech-driven intelligent platform offers a single-pane intuitive solution for supply chain managers, stakeholders, and customers to remain on the same page and simplify deliveries with reduced costs, lower fuel consumption, greater control, and increased consumer satisfaction.

Moreover, the implementation of such a platform can help enterprises expand their reach and achieve faster delivery speeds even in new geographies, providing them with a competitive advantage in the market. By embracing such cutting-edge technologies, businesses can unlock new growth opportunities and achieve greater operational efficiency. Thus, a state-of-the-art dispatch management system is the need of the hour for 3PLs and brands to bring increased predictability and transparency in the last mile.

Nishith Rastogi, Founder and CEO at Locus, is responsible for business expansion across geographies and heads product globally.