From 2018 to 2023, the share of last-mile delivery in total shipping costs jumped from 41% to 53%, and that number is likely to continue climbing. Businesses have to compete with large retailers like Amazon and Walmart, which all but guarantee fast, reliable, cheap, or free shipping. They also provide transparency and communication.
That reality means customers now expect this level of near-perfection from all businesses that offer delivery services. And to stay in business, you’ll need to meet that demand. If you want to out-compete your competitors? You’ll need to exceed expectations.
That’s where real-time delivery management comes in.
This article will look at real-time delivery management and its benefits and challenges. We’ll also look at how you can get started competing in your field to grow your business and drive revenues higher.
Key Takeaways
- Real-time delivery management improves customer satisfaction and operational efficiency.
- The right software helps reduce delivery costs and optimize routes.
- To stay competitive in today’s delivery landscape, especially against giants like Amazon and Walmart, businesses must embrace real-time, AI-powered delivery tools.
What Is Real-Time Delivery Management?
Real-time delivery management is a digital tool that helps businesses become more efficient and effective with their delivery services. At its best, it’s software companies can integrate with their existing systems to:
- Optimize fleet management and delivery mapping
- Track drivers, vehicles, and packages
- Communicate with drivers and customers
- Provide insights and analytics
Typically, this tool is mobile-friendly and easy to use, so your drivers will happily adopt it, and it can save you time, money, and energy.
Benefits of Real-Time Delivery Management
So, why do you need real-time delivery management? Because the benefits far outweigh any initial challenges, and the cost more than makes up for itself. If you choose the right software for you, it will be more an investment than an expense.
Here are a few of the benefits:
Increased Customer Satisfaction with Live Updates
The bottom line of any service or product-run business is customer satisfaction. Without happy customers, you have no long-term business. You need to provide some kind of value. Well, the modern-day version of happy customers when it comes to delivery services is fast, reliable, and predictable package delivery.
Last-mile delivery management software offers live updates. GPS tracking allows you to monitor the exact location of your packages and the vehicles they’re on at all times, moment-to-moment. With a communication and alert system, you’ll be able to provide that information to your customers and offer alerts and notifications in real time. This translates to informed, satisfied customers.
Improved Operational Efficiency and Route Optimization
Route mapping managed by an AI system ensures your routes are optimized at all times, with real-time changes made when necessary. This means your drivers take the right packages and the best routes on any given day.
It also means that when traffic or weather events occur, the software will update and notify your drivers and dispatchers. That way, they can reroute with the latest information. You’ll save time, money, and energy, and you’ll have happier employees who don’t have to play a guessing game all day.
Reduced Delivery Costs and Fuel Usage
The results of these optimal routes and better operations are reduced costs. You’ll have fewer missed deliveries, which means you won’t have to attempt delivery a second (or third) time. You’ll save on fuel because your trucks won’t be sitting idly in unnecessary traffic for hours each day.
You’ll also require less vehicle maintenance because your trucks won’t endure unnecessary wear and tear.
These savings can translate into tens of thousands of dollars per year.
Enhanced Decision-Making with Real-Time Data Insights
Real-time delivery management software will store all of your data and provide you with reports. It’s like your eye in the sky, so you’ll always be able to make decisions based on the best information at hand at the moment.
It can also provide you with reminders for vehicle maintenance, insights into driver performance, and tips for improving operations based on past performance and results.
And you’ll get all this without having to manually pull reports, review them with a fine-tooth comb, and call in experts for advice.
AI will do it for you, like the best assistant that never gets tired and never deals with human error.
Challenges and Considerations
Of course, nothing is without its challenges. When you adopt a new software, you’ll have a few things to think about. Here are the most important ones:
Integration with Existing Systems
While the best real-time delivery management software will integrate with your existing CMS, CRM, and other APIs, some won’t. The last thing you want, or need, in your warehouse is another application to learn about and toggle to.
And here’s the truth: if your employees don’t adopt the app, it will become a waste of your time and money.
So, if the software you’re looking at doesn’t integrate, don’t bother. It’s just another tool that will likely never get used.
Data Privacy and Security Concerns
You’re trying to build and maintain customer trust and loyalty. One quick way to lose that is by accidentally releasing their data to hackers. Your chosen software must offer the highest level of security and maintain your customers’ privacy.
Or you’ll have more problems than solutions.
Connectivity Issues in Remote Areas
Some delivery addresses are way out in rural farm land. But your drivers need to be able to provide proof-of-delivery and even communicate with customers in even the most remote areas. If your mobile apps don’t have superior connectivity, this will become an issue.
If you do have powerful connectivity, but the software doesn’t, then you’ve chosen the wrong application. Your software should work as hard as your mobile devices do.
Managing Real-Time Exceptions
Some real-time delivery management software options will perfectly map out a route for the day, but then they can’t update that route when the unexpected occurs. Anything can happen during a delivery day — traffic, weather events, breakdowns, flat tires. The best applications should be able to provide real-time updates and manage any new events at the moment.
Top Features to Look for in a Real-Time Delivery Management Solution
Now that you know what challenges you might face, and what the benefits are of this software, you’re ready to get started. But first, it’s important you know what features to look for. There are some real-time delivery management options that are strong at face value but don’t offer all the essentials you’ll need for truly successful delivery service.
Here are the features any software you choose must have:
- Live map tracking: Your software must utilize GPS tracking in real time and be able to update your drivers’ routes in even the most remote areas.
- Predictive ETAs: Accurate predictability is key for your customers, who expect reliable deliveries. It’s also essential to your drivers, who need to trust the routes they’re following.
- Customer communication tools: Your drivers and dispatchers must be able to message your customers, and vice versa, for optimal customer satisfaction.
- Driver performance analytics: This feature is an advanced but necessary one. You need to be able to hold your drivers accountable for their driving, idle time, and performance. Real-time tracking should be able to provide reports for all of these issues.
- Proof of delivery support: Customers now expect proof of delivery, whether it’s a signature or a photo. This feature also protects your company in the event of customer disputes.
How to Implement a Real-Time Delivery Management System
Once you’re ready to get started with your real-time delivery management system, it’s time to shop.
First, evaluate the top companies that provide all the features you need. Look for online reviews and testimonials for the best, most honest feedback. Also consider your budget and the cost. Make sure the company offers a free trial, so you can get a sense of the system before you commit.
Second, look for integrations with your existing systems. Remember, if your driver won’t adopt it, it’s just a waste of money.
Finally, make sure the company you go with will train your employees, that the system is user-friendly, and that you collect feedback from your employees as they begin to use the system. You also want to ask about customer support. You must be able to call for help and actually get it.
The idea should be that this new tool is one your staff raves about and is excited to use. Anything less is a waste of time and money.
The Future of Delivery Services Rests with AI
If you’re not looking at real-time delivery management systems today, you’re already behind your competitors. The bottom line is that the future of delivery services rests with AI and its ability to “think” fast and adapt to changing situations.
Predictive logistics and automation will help you optimize routes, keep your customers happy, and save time and money.
Sign up for a free trial at Cigo Tracker for real-time delivery management system that works today and get ready for better speed, visibility, and control.
FAQs
What types of businesses benefit most from real-time delivery management?
Any business that relies on deliveries—whether it’s food delivery, eCommerce, retail, healthcare, or logistics—can benefit. If customer satisfaction, fast service, and cost efficiency matter to your business, real-time delivery management is a smart investment.
How difficult is it to integrate real-time delivery management software with existing systems?
The best platforms are designed for seamless integration with common tools like CRMs, CMSs, and inventory systems. Always confirm compatibility before committing, and choose providers that offer onboarding support and training for your team.
What happens if there’s no internet or GPS signal during a delivery?
Top-tier software is built to handle low-connectivity scenarios by storing data locally and syncing once a connection is re-established. However, make sure the system you choose supports offline functionality and robust fail-safes.
Is real-time delivery management software expensive?
While there is an upfront cost, it’s more accurate to view it as an investment. The savings in fuel, time, vehicle maintenance, and customer retention typically far outweigh the initial expense. Many providers also offer scalable plans and free trials.
