Why GPS Tracking is the Key to Last-Mile Delivery Challenges in 2022

V3 Smart Technologies Pte Ltd.

As more people rely on e-commerce for all of their purchasing needs, quick fulfilment and delivery are no longer a “good to have”—it’s a necessity for any online shopping experience. And if logistics providers and their major retailers want to stand a chance against their competitors, improving their delivery and processing speed should be their top priority.

As a result, companies are rushing to develop new technologies and test supply chain models to increase packing capacity, delivery speed, and provide better customer experiences while lowering costs. However, final-mile delivery remains one of the most costly and complex operations.

In this post, we’ll explain the definition of last-mile delivery, the issues it poses, and how GPS tracking can help you solve them.

What is Last-Mile Delivery?

Last-mile delivery is the final phase in the supply chain. The transition of a product from a warehouse to the home of your end-user. Last-mile delivery is the most important step in the delivery process, and it should be handled carefully to ensure timely deliveries.

In this important stage, businesses need to ensure effective shipment in response to rising consumer demand. Whether it is a large-scale retail delivery order or a parcel drop-off to an end consumer, the supply chain’s final destination must be reached in a timely manner to maintain service satisfaction. The final mile is also the costliest part of the route, from the transportation hub to the last drop-off point, hence resource optimisation should be a top priority.

Challenges in Last-Mile Delivery:

During the COVID-19 outbreak, last-mile delivery activity increased due to a substantial rise in online purchases as stay-at-home mandates for the general public and non-essential business workers were enforced all across the world. Therefore, the logistics industry has to go through many last-minute delivery changes while facing intense demand.

  • If you have ever monitored a shipment online in real-time, you will understand how tedious last-mile delivery can be with its long processing and delivery time, and the many drop-offs that have to be made for each individual parcel in a single day’s trip.
  • In remote places, delivery points along a route may be many miles apart, with each receiving only one or two deliveries. The situation isn’t much better in cities, as delivery time will be affected by traffic congestion even with lesser drop-offs.
  • Online shopping in the global retail market has also substantially raised the number of packages delivered each day. Moreover, customer expectations continue to increase, with customers expecting not just speedy, but also free delivery, which can make last mile delivery even more expensive.

One of the best ways to tackle these challenges is by deploying a GPS tracking software system. Any transportation or delivery organisation that relies on its resources to generate revenue needs to keep track of its vehicles, and an effective GPS monitoring system could be the answer. Businesses may concentrate on improving and optimising their fleet management operations if they have a GPS tracking system set up. At the same time, they can simultaneously look for ways to cut costs and increase efficiency.

What is a GPS Tracking Software?

GPS (Global Positioning System) software is widely used in today’s society. GPS tracking works by locating the position of a GPS tag through satellite signals. A GPS monitoring device, when used in conjunction with mapping and cellular connection, can offer the exact and real-time location of any physical asset being monitored. As a result, GPS tracking is an excellent choice for tracking the whereabouts of your vehicles.

The Advantages of a GPS Tracking System for Last-Mile Delivery

Increase Cost-Effectiveness

Managers can gain a deeper level of visibility into their operations by using GPS monitoring systems to track vehicles. They can see where each automobile is and use data to make better judgments and increase efficiency.

Improve Driving Management

Using a GPS tracking device for monitoring fleets can enhance driver performance and vehicle security in addition to enhancing business income and profitability. Managers can tell which drivers are driving safely and optimally by looking at trip reports and vehicle analytics.

Prevent Auto Theft

Vehicles are necessary and significant assets for any company. Regardless of whether the vehicles are rented or owned, they must be controlled and kept secure for daily operations to take place.

Companies can retrieve lost or stolen vehicle data with fleet management software, which uses real-time position data presented by a GPS unit. This data will also be of use for stolen vehicle investigations to speed up the vehicle recovery process.

Reduce Vehicle Idle Time by Optimising Routes

Regardless of how well you plan, there is bound to be something you cannot predict. Traffic congestion, vehicle breakdowns, and car accidents are all potential bottlenecks in the delivery process.

That is why GPS tracking is so helpful. When used in conjunction with a fleet management software, such software can enable last mile delivery companies to optimise delivery routes in real-time, plus avoid unnecessary delays and quickly attend to problems.

With real-time traffic data and visibility of every vehicle on the map from fleet management software, fleet managers can optimise routes or contact drivers regarding any issues in a matter of minutes.

Boost Consumer Satisfaction

GPS tracking systems are able to enhance customer satisfaction where face-to-face customer interaction is not possible when drivers are travelling.

For example, a courier service that employs GPS tracking can provide real-time shipment updates and delivery messages to its users. Customers can be notified not only where their package is in transit, but also when it has been dispatched or delivered.

Conclusion

Last-mile delivery companies will benefit from implementing a GPS tracking software system as they can improve transportation efficiency while also gather useful information regarding vehicle and driver performance.

Fuel usage, maintenance costs, accident rate, and paperwork can all be reduced with the help of a GPS tracking software system. Not to mention, it can also reduce the number of lost or stolen fleets and enable faster turnaround times in fleet recovery.

In a nutshell, firms can reduce costs, increase brand recognition, and improve customer satisfaction by integrating GPS monitoring devices with last-mile delivery systems. If you operate last-mile delivery and are interested in installing GPS tracking for your vehicles, talk to us at V3 today.

Top