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What is Last Mile Delivery

Last Mile Delivery in 2021: The Complete Guide

Consumer behaviour has evolved swiftly, especially due to the onset of the Coronavirus pandemic. With more people opting to purchase online, logistics and e-commerce companies need to develop an efficient, fast, and reliable last mile delivery model.

This FAQ gives a clear insight into the concept of last mile delivery, how it works, challenges, opportunities, and future trends. Take a look:

What is last mile delivery?

To put it in a nutshell, the delivery process taking place from the distribution centre to the end-user is known as last mile delivery. The goal is to get the package to customers in the shortest time possible sans any delays, which makes the “last mile”, a crucial aspect of the logistics and supply chain industry. When implemented correctly, it results in a high level of customer satisfaction and saves time and money.

What are the steps involved in last mile delivery?

This is what happens when last mile delivery is initiated:

  • A centralized system maintains detailed records of orders and requests. Both sender and end-user are involved in this step.
  • A tracking number/link is generated so delivery status can be monitored in real-time.
  • Businesses dispatch orders to the transportation hub as fast as possible, so they can be delivered to recipients.
  • Orders are sorted, and then packages are delegated to delivery personnel based on routes and addresses of recipients.
  • Orders are loaded into vehicles. Each order is individually scanned and their status updated. It ensures they can be monitored in transit, so the chances of goods getting lost or misplaced drastically reduced.
  • The package is delivered to the final destination, while signatures, proof of delivery, barcode scanning, and other information is recorded. This step verifies the delivery and marks the order as “complete”.

What are the problems in last mile delivery?

Even though the last mile concept sounds simple, there are a host of issues involved when it comes to successful execution. Take a look:

  • Delivering small quantities to numerous businesses and households – you need more manpower to cover a wide area, and it doesn’t add much to revenue as orders are relatively small.
  • Navigating through congested areas and figuring out how to reach destinations that are miles apart, without delays – no one wishes to deal with angry customers complaining that their shipment is not on time.
  • Optimizing routes during bad weather such as rain, storm, and snow – they can cause unprecedented delays with roads being blocked.
  • Keeping overall costs (fuel, maintenance, refunds & returns, etc.) down. Fuel expenses shoot up due to idling and poor driver behaviour, while the company has to bear the cost of returning or exchanging defective/damaged items. The cost goes up if a refund has to be provided.
  • Meeting customer expectations with same-day deliveries.
  • Type of merchandise being shipped – perishable goods, groceries, and pharmaceuticals are often kept within particular temperature ranges, while bulky items like furniture and appliances require more manpower.
  • Keeping up with technology – a common problem with several global transportation and logistics companies is the use of obsolete and outdated technology for last mile, which results in delays and high shipping costs.

What are the various options that can be explored for last mile?

Create your own fleet “in-house”

This option is convenient but comes with several expenses, so not many can afford it. Building and operating an in-house fleet can be exhausting and time-consuming, which shifts focus from other core objectives. Companies mostly turn to third parties to fulfil delivery needs, but delivery experiences are a major aspect of customer’s interaction with your brand. Last mile providers have to align with the brand image as viewed by customers but few services on the market can make it happen. 

Talk to carriers and postal services

When you let another company control the delivery process, flexibility goes for a toss, as your delivery experience needs to fit into their system (rather than the other way round). Moreover, you have to be dependant on them during the busiest times of the year, when reliable and timely deliveries are vital for ensuring customer satisfaction. Their infrastructure is already stretched to capacity at this time, so ticking all the boxes of a successful delivery might not be possible.

Local couriers work for small scale operations

You have to take the size of the item into account, because these are small establishments with a restricted number of vehicles, and the vehicle size is limited as well. Not every company has the capacity to scale as per demand, so you might have to engage multiple delivery service providers, which is a logistical nightmare while costs go up.

Variable marketplaces that are “crowdsourced”

These services ensure quick and on-demand deliveries at variable costs. The trucks aren’t owned by these companies, so they can scale and adapt as and when required. These marketplaces customize the delivery experience for your brand, so you have more control over the process. They offer features such as web/cloud, real time tracking and on-the-go apps.

How can we address last mile delivery challenges and identify opportunities?

Did you know that 75% of companies in the U.S. have reported that the pandemic has disrupted their supply chain? The major reason is the shift in consumer buying behaviour, with a massive uptick in online sales.

Stores that have a physical presence turned into fulfilment centres

Brick and mortar retailers operate stores spread across an area or even a country, along with warehouses and distribution centres for keeping stores stocked. Online orders have changed the entire landscape as retailers have to fulfil single orders that come with online sales, which have a different packing and fulfilment process as compared to working with cases or pallets. Speed of delivery is a crucial factor here, so it is helpful if stores can hold inventory close to customers, whether they shop in person or online. This makes same-day local deliveries more feasible. Turning a part of your stores into fulfilment centres for online orders is also less expensive than getting more warehouse space. Accenture has stated by 2023, that more than half of e-commerce purchases will be delivered from local inventory.

Retailers specializing in e-commerce have to offer fast and low-cost deliveries

Warehouses and fulfilment centres for "e-commerce only" retailers are designed just for e-commerce orders. Since they use postal services or traditional carriers to fulfil orders, the customer experience isn’t stellar. Carriers are often unable to meet timelines for local deliveries, or handle larger and bulkier items. When deliveries aren’t as per expectations, customers blame the company they ordered from (not the delivery company). Deliveries not only have to be fast, efficient, and low cost, but real time tracking needs to be available too.

B2B and B2C manufacturers communicating directly with customers

Even though manufacturers engage customers via retailers and wholesalers, some of them transact directly with customers now.  Due to direct communication, they are able to build a stronger rapport and keep them in the loop about promotions, company information, and new products. They can maintain histories of purchases, to predict buying behaviour, and thus tailor communications for each customer. Deliveries have to cost-effective, fast, reliable, and scalable, so the delivery model is a key factor here. Building an in-house fleet is costly, shifts focus, and is tough to scale rapidly, while third party delivery models might not meet expectations.  

B2B suppliers creating in-house fleets

Business customers want the process of purchasing products for their operations to be streamlined and efficient. Suppliers often build their own fleets, but they face the same problems as businesses that build fleets dedicated to consumer orders, including steep initial investments and sizable ongoing expenses. Sufficient resources have to be allocated to the fleet, but even with a substantial investment, it isn’t possible to meet every delivery requirement, so the risk of disappointed customers remains.

How can technology aid in channel of evolution for last mile delivery?

As mentioned above, the Covid-19 pandemic has led to a surge in online shopping, hence last mile deliveries have become all the more important. That is why, it is imperative to shift towards an omni-channel strategy. The last mile network design is moving from a conventional centralized model to a more decentralized version. Be it via crowdsourced platforms, electric vans, drones, or micro-fulfilment centres, the last mile channel is diversifying.

Using malls and storefronts for micro-fulfilment

As mentioned, malls and storefronts can be used as micro-fulfilment centres. Nowadays, retailers often use stores to fulfil orders with 1-2 hour delivery time frames, while using backrooms for same-day deliveries. This is a lucrative option as it involves leveraging existing assets. Since these properties are situated near their customer base, deliveries can be sped up.

Scalable platforms that are crowdsourced

Crowdsourced delivery platforms are scalable and can be adapted to meet changes as per demand. Firms of all sizes will find this model helpful since no upfront investment is involved.

Live tracking and optimizing the best routes

Smart tracking and route optimization solutions help companies improve efficiency when it comes to completing deliveries. Using technologies like artificial intelligence and machine learning, they optimize routes and reduce delays.

High-tech gadgets like drones

Drones can work wonders when it comes to speeding up deliveries, while also providing the contactless delivery option -(important in the post-Covid era). With the advent of more sophisticated technology, the number of last-mile warehouses and delivery speed of drones will increase, resulting in decentralized last-mile delivery networks. Drones are especially helpful in rural areas where distances between destinations lead to mounting expenses. 

Battery-operated electric powered vehicles

Electric vehicles minimize fuel and maintenance costs, improve driver safety, and are eco-friendly. Customers are looking to make sustainable choices these days, so this can be an excellent option for companies investing in green transportation practices.

Nascent technology like wheeled robots

Wheeled robots carry several packages at a time and operate mostly on sidewalks rather than roads. They are gradually entering the marketplace as “personal delivery devices”.

Deliveries being picked up by customers via click to collect

This is an option where consumers pick up their deliveries after the items have been deposited at parcel lockers. The failure rate of deliveries is nil, while total delivery time is also greatly reduced. 

Why should you hire a last mile carrier?

Companies need to meet customer expectations perfectly when it comes to delivery, or they lose the edge over competitors. Orders have to be delivered to satisfaction every single time, irrespective of location, type of goods, or time of year. If you don’t partner with a last mile carrier, you will face hurdles during same-day delivery or while adhering to timelines for faster delivery. Most customers don’t return after one bad delivery experience, so you can’t drop the ball on this. Partnering with a credible last mile delivery partner ensures your deliveries are on time, reliable, and build on brand loyalty.

How to select a suitable last mile delivery partner?

When choosing a last mile delivery partner, you need to keep the following points in mind:

  • Ability to scale as and when required – The delivery solution needs to align with company growth.
  • Cost-effectiveness – Minimize ongoing costs related to fuel, maintenance, idling, lost or misplaced goods, returns, refunds & exchanges, speeding & parking fines, etc.
  • Customer Satisfaction – The company needs to measure customer satisfaction levels, monitor and track customer reviews, and set benchmarks for accountability.
  • Trained Personnel – Drivers have to be thoroughly trained to represent your brand and interests.
  • Service Quality – They have to meet expectations when it comes to accuracy and speed of delivery. Moreover, they should prioritize all clients equally, and have an expert available to assist with all kinds of queries.
  • Use of Latest Technology – They should offer features such as real time tracking and notifications, predictable pricing, analytics, and so on. Delivery details such as real time status of the shipment and ETA of delivery need to be available to customers.
  • Driver Safety – They should promote safe driving behaviour so the delivery experience isn’t hampered due to unnecessary delays or accidents that could have been averted. Adherence to all Covid-19 safety protocols to curb the spread, need to be maintained as well.

How does last mile help in the era where technology is constantly evolving?

The introduction of technology in the retail sector has completely changed the game as it has led to fierce competition among e-commerce companies. About a couple of decades back, shipping and deliveries took around 6 to 8 weeks, but now one wants to wait that long today. In fact, people expect same-day delivery to be free of cost, or at a very nominal rate. Last mile delivery is the key to staying ahead of competition, so retailers have adapted their delivery model accordingly.

Why do you need advanced last mile software to complete last mile deliveries successfully?

Last mile delivery software can make the process faster and more efficient than ever, while bringing down costs at the same time. Take a look:

  • Route mapping – Discover the most efficient routes after factoring in traffic, location, capacity, and time under consideration, to minimize total delivery time.
  • Automatically dispatching orders – Tackle the on-demand orders and priority assignments with ease.
  • Real time tracking – Make the delivery process transparent by providing real time updates of the shipment to customers, so they know exactly when it would arrive and who will deliver it.
  • Maintain proof that a delivery is successful – Mark a delivery as “complete” via in-app signatures, photos that show delivery executives placing the packages on doorsteps, along with notes, and barcodes.
  • Improve real time visibility – Maximize fleet visibility by pinpointing exact location of vehicles to check how many are idling. Better visibility also reducing theft, spoilage, and pilferage.
  • Create reports – Maintain detailed data and records that help you take insight-driven business decisions.

What are the last mile delivery trends in 2021?

According to a report by Digital Commerce 360, consumers spent a whopping $861.02 billion in online shopping in the year 2020! The 44% growth is a massive increase as compared to last year.

Contactless delivery

The pandemic has made increased the need for contactless delivery due to safety concerns. Last mile carriers have adapted with digital solutions like Electronic Proof of Delivery software (e-POD) and digital payments to minimize contact, which has to continue.

Drones and delivery Bots

Drones, robots, self-driving vehicles, and autonomous delivery bots will play an integral role in completing last mile deliveries.

More urban warehouses

Companies have to build warehouses, hubs, and fulfilment centres closer to cities, as more customers start demanding same-delivery. It not only reduces transit time, but makes access to delivery agents and labourers much easier

Smart tracking

Retailers and logistic companies are exploring advanced technologies such as location intelligence (LI) that keeps customers informed about the exact location of an item in transit and offers more visibility. Features like real-time tracking, route optimization, and visibility, among others, are helping to complete deliveries successfully and improve fleet management.

Quicker fulfilment

Last mile carriers are working harder to scale their delivery model to offer services like one-day and same-delivery – shippers will focus on logistics and move merchandize faster. 

Carrier becomes salesman

Studying a customer’s buying behaviour reveals their likes and dislikes, which has triggered the concept of mobile warehousing. The driver or carrier will load products that weren’t ordered by the customer, but which they are likely to buy. This helps them to upsell while delivering. 

Why is last mile delivery costly?

Last mile delivery is quite pricey for several reasons such as:

  • More stops resulting in more idling and downtime. 
  • Lower average speeds that mean extra time on road and fewer miles per gallon.
  • Failed deliveries due to defective goods being delivered or items lost in transit.
  • Complex routes that lead to more out-of-route miles.
  • Returns, refunds, exchanges, and discounts. 

What are the benefits of last mile delivery?

  • Flexibility – Customers can tweak the time and location of delivery as per preference, which improves overall satisfaction.
  • Boosts productivity and scalability – Eliminates unnecessary idling and unplanned diversions, thus increasing productivity. It becomes possible to quickly on-board any third party executive if any of the in-house capacity gets exhausted.
  • Dynamic routine – To ensure faster deliveries, routes are optimized in real time based on traffic congestion, weather conditions, one-way windows, delivery urgency and so on.
  • More control – It means better end-to-end control of delivery operations by gaining total visibility right from the time a customer places the order.
  • Adds to revenue – Last mile delivery software improves fleet productivity, optimizes routes, scales your business, enhances customer satisfaction and loyalty, reduces fuel consumption, minimizes fleet management expenses, and increases customer retention.

What is last mile carrier tracking?

The process of transporting a package from a hub to a specified destination in the fastest and most cost-effective manner is known as last mile delivery. Last mile carriers are the shipping companies transporting parcels or packages to customers. They are also called delivery service providers to include local or regional courier companies too. Their job is to complete the delivery, while boosting efficiencies and reducing last mile. Business platforms should display the necessary information, while providing an exceptional delivery experience. Last mile carrier tracking software should be available for driver tracking, ETA, feedback about experience, etc.

What is the cost of last mile delivery?

Capgemini Research reveals that companies unable to reduce last mile delivery costs have experienced a decline in profit by 26% in 3 years! Last mile delivery is the most expensive part of the fulfilment chain because it involves numerous costs such as:

  • Fuel – Delivering orders to sparsely populated locations, engine idling, poor driving behaviour, fulfilling same-day deliveries in crowded urban areas, etc. contribute to fuel costs.
  • Refund & Replacement – When orders are delayed or they fail, customers expect at least a partial refund, at least (if not full). Companies have to bear the expenses of free shipping, failed deliveries and late deliveries with refund costs. Sometimes items get damaged in transit, so the companies have to provide a suitable replacement and arrange a pickup so the defective product can be returned. This involves reverse logistics costs.
  • Shortage of Labour – There is dire shortage of qualified drivers, so logistics companies have to bear more in terms of wages.
  • Going Green – Congestion and emissions as a result of e-commerce delivery is creating enormous pressure on city traffic patterns. At the World Economic Forum, 2020, it has been predicted that urban last mile delivery emissions will shoot up by a whopping 30% in 100 cities worldwide by 2030!
  • Maintenance Issues – If your truck breaks down on a busy day, you have to send in the vehicle for maintenance ASAP, which in turn affects deliveries and leads to mounting expenses.

What is e-commerce last mile?

With the Covid-19 pandemic swarming every country, the e-commerce industry has been caught unawares. One of the major challenges brought on by this boom in online purchases, is the last mile delivery process. Last mile delivery in e-commerce is the last leg of a shipment’s movement before reaching the final destination. The movement is the crucial factor here, and the last phase of delivery is referred to as the “lock-in” period for your customer. 

Since consumer expectations for quicker delivery and more user-friendly options have gone up, new expectations for fulfilment speed, cost and convenience are emerging, which means competition has become extremely fierce. For example, Amazon launched same-day deliveries for customers subscribing to Amazon Prime, in early 2019. However, the increase in shipping costs affected the profits – that much was clear by October of that year. Unfortunately, this is a catch-22 situation that e-commerce companies must deal with. When competition intensifies, retailers and marketplaces not only have to offer better delivery costs, but convenient and quick last mile delivery and fulfilment options as well. 

What is the future of last mile in the post-Covid era?

Due to the sudden increase in online shopping because of the Covid-19 wreaking havoc, has caused problems in the logistics industry has been hit with problems such as lack of resources, prioritization of orders and dispatching them accordingly, and last mile delivery costs going up. In the post-Covid era, there will be a lot of changes when it comes to last mile delivery services, such as:

  • Volumes of orders are going to rise, while more customers demand same-day deliveries.
  • For continued safety of the consumer and delivery personnel, “contactless delivery” will become the new normal.
  • Operational scalability has to go up in order to meet demands.
  • Focus will shift to fine-tuning the efficiency of last mile model, and enhancing customer experience. 

Conclusion:

As is evident, last mile delivery plays an integral role in the logistics and e-commerce landscape, so companies have to adopt last mile best practices and works towards solutions that help to provide relevant delivery options and services to their customers. They have innovative technologies at their disposal to boost the delivery process as per requirements.


How Connected Fleet Tracking can Improve Supply Chain Management?

How Connected Fleet Tracking can Improve Supply Chain Management?

  • Connected Fleet tracking reduces fuel consumption by identifying troubling driving patterns and implementing practices to ensure fuel-efficient driving.
  • Locating items that are yet to reach their destination or have gone missing in transit.
  • Creating faster delivery routes, while giving managers better visibility across the entire fleet.
  • Making strategic decisions in a timely manner, promptly responding to any minor issues that arise, and identify potential problems in the supply chain.
  • Boosting customer service by getting jobs completed on time, sans delays.
  • Ensuring maximum utilization of assets across the fleet. 

Fleet tracking technology serves as more than just a tool for navigating drivers or pinpointing the precise location of a vehicle. It has transformed the logistics industry completely and made supply chain management all the more efficient. With Connected Fleet, it is possible to know the whereabouts of vehicles at any given time, monitor vehicle speed, routes, and engine idling, keeps tab on driver behaviour, and complete jobs on time.

How does Connected Fleet tracking help in supply chain management? Take a look:

Reducing Fuel Consumption

Rising fuel costs is one of the major concerns in supply chain management. Implementing fleet tracking technology via Connected Fleet gives access to a considerable amount of data that shows the activity of individual drivers and of the overall fleet as well. This helps fleet managers to identify the drivers who are using higher than optimal level of fuel. After collating this information, specific training modules can be developed to improve driving patterns, which minimizes fuel consumption. Using Connected fleet solutions, fleet managers can also get automatic alerts whenever there is speeding, harsh acceleration and engine idling, which contributes to high fuel consumption. If drivers are notified of such issues, they can self-correct their behaviour and drive in a more fuel-efficient manner.

Locating Missing Items

When items are lost or misplaced, it can create huge problems for a supply chain. One way of dealing with this issue is to track merchandise using QR codes, barcode or RFID codes. When combined with an advanced fleet tracking system, managers get a detailed picture about the movements and routes of their goods. If items don’t arrive at their intended destination, they can check the data to find out which vehicle was carrying the shipment, what route it took, and why it failed to reach. Using Connected Fleet, missing products can be located and the shipment re-routed to its correct destination, which often saves thousands in revenue.

Optimizing Routes and Ensuring More Transparency

Smooth functioning of supply chains mean that drivers should take the shortest and most fuel-efficient route between locations. For large companies, it wouldn’t cause an immediate problem if a product was delayed, but for smaller operations, it can lead to significant issues further down the chain. As mentioned, fleet managers can pinpoint the exact location of a vehicle, which lets them know right away if a particular shipment has been delayed.

Furthermore, fleet managers can design more time-efficient routes to avoid well-known congested areas. This feature is not only beneficial for the supply chain as vehicles arrive at destinations faster, but it also speeds up the final stage where products are delivered to customers. Deliveries can happen quicker and the number of deliveries in a day can be sped up well.

Making Smart Decisions

Using Connected Fleet, supply chain managers can connect vehicles, equipment, and devices to get real time status updates on jobs. It gives them a clear insight across the supply chain, starting from the warehouse and transportation, right to the stakeholders and customers. For instance, rather than viewing any job status as “with courier” or “in transit”, managers can zero in on the exact location of the vehicles. Using analytics data from fleet tracking ensures you are familiar with every aspect of the supply chain, such as knowing where your drivers are, what they are doing, location of shipments, and outcome ofs every process and system. 

With real time tracking options, fleet managers can make intelligent and timely decisions that keep goods moving efficiently. For instance, if drivers are experiencing technical difficulties while making deliveries, managers can communicate and devise instant solutions to those problems, so a task is completed with minimal delays.  This information allows fleet managers to make timely decisions regarding maintenance, scheduled delivery, and pickups. This data can be accessed later on to asses the performance of each vehicle, why it reached its destination late, and what can be done to improve service delivery.

Improving Customer Service

The efficiency of a supply chain is determined on the basis of its connectivity. Managers can access information on their systems while in office or on mobile apps, to track where an item is in real time, so that forecasting delivery time becomes a more exact science. Potential problems can be identified sooner, which allows them to contact customers to manage their expectations or make other arrangements to meet Service Level Agreements. Connected Fleet allows automation of status updates for customers, so they stay informed about their shipments, which in turn reduces inbound enquiries to the customer service team.

Maximizing Asset Utilization

Improved connectivity allows supply chain managers to optimize fleets, which means smarter route planning and identification of assets that are delayed in traffic or held up at a previous job. Connected Fleet lets you track utilization rates to monitor efficiency of assets, thus enabling managers to schedule optimal number of jobs for each asset. With a deeper understanding of how assets are utilized, along with their performance, business operations can be fine-tuned accordingly. It helps to improve productivity by planning more deliveries and dispatches per day. When multiplied across a fleet and the entire supply chain, this could bring a huge boost to the bottom line.

Connected Fleet shows a lot of promise when it comes to supply chain management, but the implementation is only in its infancy. For companies operating a supply chain, it is crucial to install this technology. Anstel’s Connected Fleet provides a greater understanding of how your fleet is functioning as part of the supply chain, which allows fleet managers to improve operational efficiency and productivity by identifying bottlenecks and making timely, strategic decisions.

fuel-efficiency

How Can Connected Fleet Improve Fuel Efficiency?

  • Reasons for the rising oil prices in India.
  • Logistics companies have been significantly impacted due to fuel costs shooting up!
  • Connected Fleet solutions can reduce fuel expenditures by optimizing routes, minimizing idle times, implementing predictive and prescriptive analytics, curbing unsafe driving behaviour, etc.

Fuel prices are smashing records every day India as they keep on going up! Fuel prices in Delhi on the 8th of March are 91.17 INR and 81.47 INR for petrol and diesel respectively. And if reports are to be believed, the surge is only going to continue!

What is the reason for this substantial increase in fuel prices?

Prices of Brent crude cost as much as $55.48 a barrel in January. This rise comes after prices crashed in late March 2020, because the world entered into a lockdown to curb the spread of the novel Coronavirus. At the time, prices fell from over $70 a barrel in January to around $14 a barrel in end-March. During May, prices surged to $20 again, and the upward trajectory has since persisted.

India imports more than 80% of its crude oil from other countries, so the increase in global prices has naturally had a direct impact on fuel prices in India. As the economy emerged from the lockdown, fuel consumption shot up, so higher imports were required as well. Oil imports in December were about 29% over the previous month, and about 11.6% higher than a year earlier. Part of the rise in fuel prices is due to the new duties and cess taxes levied by the Centre and state governments. It is partly due to the fact that fuel isn’t categorized under the Goods and Services Tax (GST). Since fuel is one of the few revenue sources directly controlled by the Centre and states post-GST, governments have used it to shore up weak budgets.

How are logistics companies affected by rising fuel costs?

When fuel prices rise sharply, it can have a delayed and devastating effect on companies managing or owning a fleet of vehicles, on the other hand customers are not willing to pay anything extra for delivery. Under these circumstances, carriers are forced to raise costs or bear losses. The higher cost of fuel affects logistics companies and shipping partners as well. If it costs more for the freight carrier to transport goods, the shipping partner has to be charged more to compensate. If shipping costs rise, the recipient has to be consequently asked to pay more to make up for those extra costs. Higher fuel costs lead to product inflation and impact every aspect of production transportation along the way.

Other issues that have to be considered are rapid change and price volatility. Logistics organizations generate fuel surcharges based on fuel prices of the previous week. If fuel prices go up swiftly, a lag is created between price of fuel and fuel surcharge rate. This “lag” is what impacts the trucking company’s earnings. With the continual volatility in the price for crude oil, logistics companies are forced to restructure or strategize operations to ensure their profit margins remain unaffected, while avoiding potential setbacks.

How can Connected Fleet solutions reduce fuel expenses?

Using Connected Fleet solution and telematics data, fuel costs can be reduced by almost 20% to 25%. Take a look:

Use Optimization to Plan Efficient Routes

Longer routes mean more fuel consumption. It is vital to structure the route so fuel efficiency isn’t compromised. If drivers take routes out of their way or through known high-traffic areas, this adversely impacts fuel consumption. Using route optimization software, fleet managers can analyse routes and predict the best route drivers can take to reach their destinations. This software also takes unexpected delays and additional stops into account. For instance, congestive traffic, accidents, and road closures can change otherwise viable routes for vehicles. But the software can quickly reroute by providing alternative solutions and dispatch vehicles efficiently.Companies using fleet management solutions can reduce total miles driven by up to almost 10%. You can monitor weather patterns, area topography, building footprints and vehicle clusters too. Using this information, you can improve fleet efficiencies like sending the closet vehicle via the most direct route to provide customers with quick service, while keeping fuel usage to a minimum.

Minimize Idling Times

Idling leads to wastage of fuel, so you need to monitor which of your fleet vehicles are idle for longer than necessary. Remember that a truck uses a litre of fuel for every 15 minutes of idling on an average. So an hour of idling in a week means 1460 litres of fuel being wasted every year! Using fleet management software, you can monitor events and situations that lead to excessive fuel consumption and take necessary action to prevent it. For instance, you can check idle time per vehicle, idle time averages across the fleet, the time of day when idle time is maximum and so on. Educating drivers about the necessity of reducing idle times is a must.

Reduce Speeding

Poor driving habits like excessive speed can cause fuel bills to spike. For every 10 km over 100 km/hr, your fuel economy reduces by an average of 10%. Did you know aggressive driving behaviour like speeding reduces gas mileage by over 30% at highway speeds and 5% at city speeds? Drivers have to be held accountable so this doesn’t happen! The fleet management software lets you set benchmarks for speed limits that can be used to identify when and how much your drivers speed. You can create programs for changing driving behaviour by educating them on the importance of reducing fuel expenses.

Predictive Analytics

Create automated maintenance alerts to ensure your vehicles are in peak condition. You can monitor how much fuel each vehicle is using, and predict if maintenance is required immediately. For instance, if you notice that fuel usage has gone up for a couple of vehicles, while other fleet trucks are reporting the usual amount, something is definitely wrong. Prescriptive actions to drive down fuel usage can be implemented, such as engine tune-ups or scheduling serving on a regular basis. You can also use this report to help reduce instances of fraud by reconciling fuel card expenditures with fuel consumption.

Prevent Unauthorized Use

Are you aware if drivers are using vehicles for personal work, while the company has to bear additional expenses? It is imperative to prevent unauthorized and off-hours use, because they contribute to more fuel consumption. Create work time periods and geofences – based on these parameters and the exact location of vehicles in real time, via GPS, you can ensure drivers aren’t wasting fuel by using the vehicle for errands or personal requirements.

Anstel’s Connected Fleet Solution can be used to schedule maintenance, reduce idling time for vehicles, monitor fuel consumption across the fleet, curb erratic driving behaviour, and much more. It helps reduce fuel related costs, while maintaining profit margins, especially when petrol and diesel prices remain at an all-time high and by the looks of trends, are bound to rise yet again!

Delivery-Courier

How Autonautics helped companies manage fleet and delivery on time during the pandemic?

How Autonautics helped companies manage fleet and delivery on time during the pandemic?

A leading ice cream manufacturing company was faced with the problem of ensuring seamless operation of their supply chain and end-to-end customer satisfaction during the Coronavirus pandemic. Since they deal in FMCG products like ice cream, snacks, waffles, etc. it is all the more important to ensure there is no compromise when it comes to quality and service. By integrating Anstel’s Connected Logistics solution, they addressed a number of challenges successfully.

1. Constantly monitoring warehouses and mobile assets to ensure there is no deterioration of product quality

They monitor temperatures round-the-clock in both warehouses and trucks. Smart sensors immediately send alerts of irregularities. They identify the issue and resolve it right away, so bigger problems are effectively prevented. Smart warehousing has prevented spoiling of products and subsequent wastage. 

Remote monitoring is a blessing in disguise, especially during the Covid-19 pandemic when physical distancing is the need of the hour. Supply chain responsiveness has got a significant boost as they can easily track inventory items with status and position in real time. It has minimized revenue leakage due to safe storage, transportation, and on-time delivery.

2. Ensure safety of drivers while they are out making deliveries

Supply chain management falls apart without timely delivery, which in turn depends upon the efficiency of drivers and well-optimized routes. With the aid of real-time information using synchronized alerts, they are able to monitor driving patterns, and find out about unsafe driving behaviour as well. Using preventive analysis and predictive maintenance, they can devise prescriptive actions accordingly.

3. Maintaining Covid-19 safety protocols while ensuring smooth operation

Following hygiene and physical distancing protocols is fine, but the threat of getting infected still remains for drivers who take that risk each day. Using Connected Logistics, they are able to chalk out a safe route for drivers travelling interstate. They have access to maps detailing containment zones and hence can mark Covid-19 affected warehouses – the data is sent to drivers so they know which places to avoid.

4. Maintaining customer satisfaction and on-time delivery

As mentioned, supply chain management won’t exist without timely delivery, which affects customer satisfaction. By monitoring performance of vehicles in their fleet, they have been able to detect problem areas such as common causes of truck breakdown. It has allowed them to predict patterns and make informed decisions regarding maintenance, so customer satisfaction and timely delivery is always guaranteed.

5. Maximize asset usage

It is imperative to understand how vehicles are being used and identify areas of imbalance, which can keep your business moving and manage costs effectively. It is about using the fleet to its fullest potential, so vehicles can be adapted to changing business needs. Drive time, mileage, days driven, etc. are some of the parameters that can be used to determine asset utilization. You can check out the vehicle statistics via the telematics system – they can be used for rotating vehicles for service requirements to manage downtime, understand how conditions impact trip distance, and identify vehicles that can be repurposed for other revenue streams.

“Thanks to Anstel's highly integrated secure data analytics, robust Euro made devices, and 24 x7 customer support, we are functioning like a well-oiled machine”

Road Safety

How can Connected Fleet using GPS Tracking Improve Road Safety

  • The number of people who have lost their lives to road accident are increasing at an alarming rate with each passing year.
  • GPS tracking is no longer an optional feature – it is a must-have in vehicles, which makes the transition to Connected Fleet all the more convenient.
  • Road safety can be improved by tracking driver behavior, customizing their training, and staying on top of the vehicle’s maintenance schedule.

As per World Health Organization (WHO), approximately 1.35 million people die each year as a result of road traffic crashes! But with the advent of vehicle telematics – a combination of GPS tacking and Internet – roads can be made much safer. As Connected Fleet managers you can greatly enhance the functionality, productivity and security of both vehicles and drivers using GPS tracking.

What is GPS Tracking?

A vehicle tracking system is basically an electronic device installed in a vehicle to enable the owner or a third party to track the vehicle's location. Most modern vehicle tracking systems use Global Positioning System (GPS) modules to pinpoint the accurate location of the vehicle. Vehicle information can be viewed on electronic maps via the Internet or specialized software. 

It is important for Connected Fleet managers to understand how vehicle tracking technology is best introduced as it has a massive impact on its acceptance by the workforce.  It should be explained that cases of vehicle theft, unauthorized use and speeding will be detected, but that any penalties will be defined in disciplinary procedures before the system starts. Employees need to clearly understand how the system has been integrated to improve emergency response in case of accidents and protect vulnerable lone workers at the same time.

How Connected Fleet Using GPS Tracking Improves Road Safety

The fact is safety and security should always be your main focus. GPS tracking devices in Connected Fleet will drastically reduce the possibility of road accidents. Apart from deaths, almost 20 to 50 million people suffer non-fatal injuries in crashes, which often result in long-term disabilities. The effect is like ripples in a pond! With vehicle tracking, you get insight into events that phone calls and texts can’t deliver, such as real-time vehicle locations and routing, insight into driving behavior and compliance, and more.

Tracking driver behavior

Having a clear insight into how your drivers perform on the road is essential to keeping costs low, drivers’ safe, and customers happy. Vehicle tracking systems give you access to safety analytics and actionable data you can use to track poor driving habits.

Distracted driving can occur due to several reasons – the driver might have something else on his mind, there might be a hurry to deliver several shipments, etc. GPS trackers in Connected Fleet can be used to effectively communicate and give them turn -by- turn directions, advice about upcoming traffic, weather conditions or obstacles to avoid accidents.

Yet another cause of road accidents is speeding. Road traffic injuries are the leading cause of death among young people aged 5 to 29. Young adults aged 15 to 44 accounts for more than half of all road deaths! Unfortunately, speeding happens to the best of us when we are in a rush. It can be overwhelming for drivers on a strict schedule. Connected Fleet GPS trackers can be set to send speeding alerts, while data about driver performances can be quickly accessed using fleet tracking reports. You need to track drivers’ sudden speeding, acceleration, braking pattern, sharp turns, and so on. When you are trying to determine if unsafe driving practices are being used, the fleet tracking reports prove to be extremely informative. 

GPS tracking systems in Connected Fleet helps to pinpoint areas of concern and coach drivers when required. By curbing bad driving behavior, you not only improve road safety but also increase longevity of your fleet through less wear and tear, fewer accidents, and lower fuel costs.

Customizing driver training

As mentioned, vehicle tracking solutions in Connected Fleet help to break down driving behavior that could lead to serious accidents. Through actionable safety data, you can virtually spot trends and patterns of bad driving for individual drivers. Nowadays, many fleet managers are installing dashboard cams to record hours of driving, so they can check necessary information when required. These safety tools give you insight into your fleet’s driving habits no matter its size. You can use the information to customize training sessions for individuals and groups with specific driving habits and reward the good drivers who keep your business safe.

Reducing accidents

The weather plays a crucial role when it comes to road safety. Rainy weather, snow, storms, etc, can create unfavorable conditions, which lead to accidents. In the event that drivers consider it wise to pull over or want to steer clear of going into a bad storm, GPS trackers in Connected Fleet can help.

GPS tracking software in Connected Fleet isn’t just about monitoring vehicles – it lets you guide drivers in unforeseen events and weather conditions you wouldn’t be able to track otherwise. When out on a job or delivery, drivers navigate unfamiliar territory and often in unexpected climate, exposing them to potential risks and accidents. Predictive technology lets fleet managers track patterns and plan around bad weather using map-based risk data. Thus drivers can plan the best and most efficient routes to take by using their in-vehicle devices.

Improving vehicle maintenance

Low and middle income countries have approximately 60% of the world's vehicles, yet they make up 93% of the world’s road fatalities. You can improve road safety by ensuring your fleet is in good shape.  Vehicle tracking systems gives you an insight into the Connected Fleet’s health by creating reports about vehicle maintenance. You can set thresholds and custom alerts for pre-trip inspections and maintenance based on odometer readings from the vehicle. You get to monitor and support the fleet’s longevity, while steering clear of costly repairs or unnecessary services that often stem from poorly maintained assets.

Road safety is everyone’s responsibility and GPS tracking can make a huge difference in that aspect. Anstel has come up with innovative GPS tracking solutions in Connected Fleet to ensure safety of drivers on the road, and prevent accidents.

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