Running a successful and effective package delivery system requires effective management of various business aspects. Many issues can cause failures in shipping or deliveries. Over some of them, travel managers have control, others are external issues that you could have a difficult time anticipating and containing.

To help you anticipate and deal with the challenges standing in the way of your delivery wing’s advancement, use this delivery success guide (including logistics delivery software use) for your organization.

Why is delivery success important for your business?

The delivery service your business offers has an impact on numerous organizational factors. Let’s take a look at some reasons why having a successful delivery system (and using logistics delivery software) is important for your business.

Increase conversion rates

Customers despise online shopping experiences with poor delivery systems and options. 60% of customers identify poor delivery as the most frustrating aspect of shopping online. Shoppers want companies with convenient and low-cost options for delivery. As a company handling delivery, you need to cater to these customer expectations. Improving your delivery services has a direct impact on your sales and conversions.

Boost repeat purchases & customer retention

Part of maintaining and growing your eCommerce business involves nurturing repeat buyers and boosting customer retention. Satisfactory delivery and excellent delivery strategies play a vital role in keeping customers coming back for more.

38% of customers said they would not shop with an online store after a bad delivery experience. Customers are constantly testing the quality of service your brand provides and whether your company is worth spending money on. Establishing a brilliant delivery system is one part of creating a worthwhile online shopping experience.

Optimize profits

Failed deliveries are costly to your business. If a package arrives at a delivery destination damaged or broken during the trip, it is your responsibility to replace and redeliver the order. If your driver arrives late and misses the customer, that delivery has to get rescheduled. These re-dispatched trips incur costs to your business like labor and fuel, which cut into your profits. Thus, increasing delivery success maximizes your profits.

Enhance your business reputation

A good brand reputation works hand-in-hand with the standard or quality of service that your business offers. A good brand image impacts your customer attraction and retention as well as your profits. Conversely, customer retention, loyalty and satisfaction, and the quality of your products and services all have an impact on your brand reputation. Everything feeds into another thing: swift and accurate deliveries lead to positive customer experiences and reviews which enhance your brand reputation.

Up customer satisfaction

Online shopping is about ease and convenience, which is what customers want from their package delivery service. Customers are central to the eCommerce business and successful delivery systems. Your delivery service needs to actualize this convenient shopping experience for your customers. If not, they have the option to shop with another eCommerce store with better delivery or visit physical stores.

Thus, good delivery has a direct impact on customer satisfaction. This includes clear and constant communication, numerous delivery options, on-time delivery, delivery updates, and more.

Improve efficiency

A smart and well-developed delivery system doesn’t just impact the company-customer relationship. It also influences your business’ internal processes. With an efficient delivery structure, which you can achieve through the use of logistics delivery software, you improve your order management, resource allocation, productivity, and functionality. Furthermore, you avoid financial, resource, and time costs related to delayed or failed deliveries, allowing you to allocate these inputs where they are most needed.

What are the challenges to logistics delivery success?

It is not easy to run an efficient and successful delivery service but what are the common challenges that delivery companies face?

Inefficient business processes

Package delivery structures do not exist in isolation from the rest of the organization’s structures. You can set up a good delivery mechanism but if other departments and business processes do not support its functionality, then it will not succeed.

For example, consider the role of delivery in relation to your organization’s supply chain process. Delivery to the customer is the very last step in this process, after supply, production, and manufacturing, shipping, storage, etc. What this means is that any interruptions or delays to the processes leading up to the package delivery step can derail your deliveries entirely. Thus, ineffective business processes including poor supply chain visibility and bad order management can harm your delivery success.

Fluctuating economic conditions

Political climates, environmental and sustainability regulations, global pandemics, international regulatory boards, industry regulations, inflation, changes in the CPI, etc. There are various economic and socio-political circumstances that affect and challenge the success of delivery systems.

Poor route planning & route optimization

Also related to inefficient business processes is the lack of coherent and clever route planning. Route planning and route optimization (managed via logistics delivery software) enable travel managers to speed up deliveries, cut costs, and maximize driver trips. It also improves customer service in different ways – more on this later! Without route planning, your delivery system becomes an unstructured, inefficient mess.

Transportation costs

As you can imagine, transportation and transportation-related costs make up a large fraction of the costs delivery systems sustain. Delivery managers need to consider fluctuating fuel prices, the size of their fleet, vehicle maintenance costs, driver fees, and more. High transportation costs pose a sizeable and constant challenge to package delivery systems.

reduce transportation costs trackpod

Changing customer expectations

Markets and industries are constantly growing, and so are customer expectations of those markets and industries. Customer expectations grow with improvements and developments in industries, economic conditions, social trends, and other factors.

This makes it important for businesses to keep tabs on the needs and desires of customers from their online shopping experience and delivery. This constant change presents a challenge to businesses to constantly transform their delivery offerings, too.

Driver shortages

In 2021, the United States, for example, faced threats to deliveries across the country as the nation was faced with a shortage of truck drivers and delivery drivers. Although the shortage existed prior to the pandemic, COVID-19 has extended the amount of time it takes for drivers to get a commercial driver’s license, a factor contributing to the shortage. This driver shortage has seen a direct impact on delivery services, delivery fees, and the cost of delivery-dependent commodities like fuel.

Constantly evolving technologies

As with evolving customer expectations, and changing economic conditions, delivery systems also have to adapt to upcoming technological innovations. When delivery systems do not utilize technologies like logistics delivery software, they can place themselves at a disadvantage against competitors who adopt progressive technologies to improve their services. Of course, another challenge that arises with new tech is the costs related to buying, implementing, and maintaining the technology.

10 ways to increase package delivery success

Now, you may be wondering how you can mitigate the challenges above and streamline the route to delivery success. The truth is, logistics delivery software is the answer to many of these problems. Below, we outline ways to improve your package delivery.

1. Improve order management

You need to have an organized order management system in place. You should prioritize deliveries according to the order that came in first and the urgency of the order. Customers will usually pay more for urgent deliveries to arrive quickly so you should make these deliveries the top of your priority list.

In addition to prioritizing orders, you should have a system that notes all incoming order requests and tracks their progress. Your order and inventory management should also work together so that you don’t promise the delivery of a product that is no longer in stock. Logistics delivery software can help you with this.

2. Consider your delivery options

There are numerous package delivery and courier options available today. Same-day delivery. 24-hour package delivery. Contactless delivery. Deliveries that take 3-5 days. And so on.

You need to be smart when deciding which services to offer to your customers. Offering all of them can be costly to your business. It can also make it difficult for you to schedule drivers and vehicles to fit all the times. Rather, offer options that are pragmatic for your business and available resources.

3. Explain your package delivery options and processes

You need to have clear instructions or explanations of how each delivery option works including the price, delivery time, duration of delivery, payment, etc. Have this information in its own section on your website or under the FAQ. You should also have this information available for your customers to read at the checkout.

Customers need to know what they are paying for so that they do not have unreasonable expectations that you will then fail to meet.

4. Communicate with customers

Once a customer pays for their package, you should be certain that they will be anticipating their purchase in their hands. They also want to know everything possible about when the package may arrive so that they can fit the delivery into their schedule. This makes communication important.

Try and communicate with customers on four levels: immediately after they place their order, prior to the order getting dispatched, when the order gets dispatched, and after the delivery.

5. Communicate with drivers

Communication with your drivers and within your delivery team is also important. Track-POD’s logistics delivery software and app enable this communication and connectivity even when drivers have already hit the road. Managers can communicate to drivers any changes in the delivery trip and vice versa. The app also allows drivers to communicate and update customers about the progress of the trip.

6. Enable delivery tracking

Managers and customers can also track package delivery progress using the app’s GPS tracking system. This allows customers to watch the driver’s location live.

For your business, this means more accurate estimated arrival time to customers, ensuring their satisfaction with the delivery time. The GPS system also allows managers to monitor whether drivers follow prescribed routes and take any detours that may delay package delivery.

7. Use route planning software

Route planning or route optimization software is an important tenet of logistics delivery software packages that all delivery businesses ought to use. With automated route planning, the software can prescribe shorter and safer routes that ensure quicker deliveries and the safety of your drivers and vehicles.

Furthermore, with route planning, you can optimize multiple stops and organize your route so that driver trips efficiently cover multiple deliveries in the same region. That way, you cover less distance and save money on driver fees and fuel costs.

8. Give proof of delivery

Proof of Delivery is still part of your customer communication and package delivery service. Providing a document or Proof of Delivery ensures that the customer cannot claim that they did not receive a package and blame the business.

Using Track-POD’s logistics delivery features, you can get electronic proof of package delivery and an electronic signature as proof of receipt. All documents are saved instantly onto your Track-POD cloud document database and your customers receive a copy of all relevant documents for their personal use.

9. Utilize Track-POD’s automation features

The benefits of automation for transportation companies are extensive. Concerning delivery success, automation can make your system more efficient, reduce time delays, and ensure all necessary tasks are fulfilled. Track-POD’s logistics delivery software offers automation in different forms including automated job allocation to drivers, route updates, document saving and sharing, invoice generation, etc.

10. Reflect

With different package delivery success techniques in place, you need to monitor what works and what doesn’t. Part of maintaining an effective delivery system means letting go of wastefulness, thinking more sustainably, and working on continuous improvement. Through Track-POD’s logistics delivery software, you can analyze metrics and analytics collected from past delivery trips. You can also view this data via automatically generated reports.

Analyze metrics like cycle time, cost, and service metrics to use this information to identify flaws in your system and to address them.

transportation management analytics

Conclusion

Attaining delivery success is no easy feat. It’s about balancing a myriad of business activities and aspects to find the right flow for your package delivery system. Fortunately, however, Track-POD’s logistics delivery software has custom features that assist in this balancing act making sure you improve and reap success again and again!