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Delivery Management Software 101: A guide

Delivery Management Software 101 A guide
Delivery Management Software 101 A guide
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So, you’re running a business with deliveries. Whether you’re a seasoned logistics professional or a restaurant owner with delivery drivers on the clock, there’s one thing you need to run smoothly: Delivery Management Software (DMS). 

This software has become the lifeblood of many operations, and if you aren’t using it yet, well, we need to talk.

But hey, don’t just take my word for it—let’s dig deep and explore why delivery management software is the game-changer for your business. Here’s everything you need to know, and probably didn’t know you needed. 

What is Delivery Management Software? 

Before we get ahead of ourselves, let’s break it down: Delivery management software is a tech tool that helps businesses plan, manage, and track deliveries.

Think of it as the GPS of your entire delivery operation. It ensures that packages get from point A to point B in the most efficient way possible—and keeps everyone (including your customer) informed every step of the way.

Without this, you’re flying blind. With it? 

You’re the air traffic control tower of your delivery world, with real-time updates, route optimization, detailed performance metrics, and a customer portal that enhances the overall customer experience by facilitating order tracking, live communication, and delivery management at your fingertips.

Why your business needs delivery management software 

Alright, you own a restaurant, and it’s Friday night. Orders are pouring in. You’ve got three drivers who are running late, one customer who’s calling for the fifth time asking, “Where’s my food?” and a pile of cold pizzas waiting to be delivered. This, my friend, is what we call “Delivery Chaos.”

Now, picture the same scenario—but instead of scrambling, your delivery management system is working wonders. 

The software has already mapped out the most efficient routes, and your drivers know exactly where they’re going. Your customers are getting automatic updates on their delivery status, and you’re calmly sipping a cup of coffee, watching your business run like a well-oiled machine.

That’s the difference delivery management software can make.

5 Key features you should look for in delivery management software

So, now that you’re sold on the idea (and if you’re not, trust me—you will be by the end), let’s talk about features.

Not all delivery management systems are created equal. Some are just route planners with a fancy name, while others are the full package. Here’s what to look for:

1. Real-time tracking (AKA “Where’s My Driver?”)

Gone are the days of blindly wondering where your drivers are. With real-time GPS and driver tracking, you can see exactly where every vehicle is at any given moment.

This feature not only keeps you in the loop but also reassures your customers. No more “It’ll be there in 10 minutes… I think.”

2. Route Optimization (Because time is money)

This is a big one. Your drivers are wasting time (and fuel) if they’re zigzagging across town. 

Route optimization helps map out the shortest, fastest, and most efficient routes, saving you both time and money. Your drivers will thank you, and your accountant will probably send you a thank-you note, too.

3. Automated dispatch and scheduling

Automated dispatch and scheduling are critical components of delivery management software. 

Picture this: instead of manually assigning drivers to routes and hoping for the best, the software does it all for you. 

This feature enables businesses to optimize their delivery routes, reducing fuel consumption and lowering emissions. By automating the dispatch process, companies can also improve their on-time delivery rates, leading to increased customer satisfaction and loyalty.

Additionally, automated scheduling allows businesses to allocate resources more efficiently, ensuring that the right drivers and vehicles are assigned to the right routes at the right time. 

This not only boosts efficiency but also ensures that your deliveries are always on time, keeping your customers happy and coming back for more.

4. Automatic notifications (For the eager-to-know customers)

We’ve all been there. You order something and immediately start refreshing your tracking app like it’s going to make the package arrive faster. 

Well, with delivery management software, your customers get automated SMS or email updates on their order’s status. No more frantic calls asking for ETAs.

5. Analytics and reporting (Your secret weapon)

Knowledge is power, right? 

Delivery management systems often come with built-in reporting tools that show you performance metrics like delivery times, driver efficiency, and customer feedback. 

This is gold for making improvements to your operation. Plus, when you see how much you’ve saved on fuel, you’ll probably do a little happy dance.

What are delivery operations?

Delivery operations involve the planning, execution, and monitoring of the delivery process. This includes tasks such as route planning, driver management, vehicle tracking, and delivery confirmation. 

Effective delivery operations are critical to ensuring timely and accurate deliveries, which in turn drive customer satisfaction and loyalty.

By leveraging delivery management software, businesses can optimize their delivery operations, reducing costs and improving efficiency. 

Imagine having a system that not only plans the best routes for your drivers but also tracks their progress in real-time and confirms deliveries as they happen. That’s the kind of efficiency and reliability that delivery management software brings to the table.

Choosing the right delivery management software 

Now that you know what to look for, how do you choose the right software? The answer, my friend, depends on your needs. Let’s break it down:

The restaurant owner with a few drivers

You’re juggling kitchen orders and delivery logistics all at once. You need a simple, user-friendly solution that focuses on route planning, real-time tracking, and notifications. 

Your drivers are more concerned about getting food hot and fresh to customers than complex metrics. Something like Locate2u might be right up your alley.

The logistics company with fleet of drivers

If you’re in logistics companies, it’s a different ballgame. You need a robust system that handles not just real-time tracking and route optimization but also advanced features like multi-stop route planning, geofencing, and fleet management.

Your software should be customizable to fit your growing needs—think Locate2u.

In both these scenarios, scalability is key. You don’t want to invest in software that you’ll outgrow in six months. Make sure whatever system you choose can evolve with your business.

How drivers use Delivery Software

Let’s put the software into action with a step-by-step guide. 

1. Log in to the delivery app

The driver opens the app and logs in with their credentials to access their scheduled deliveries for the day.

2. View assigned orders

The app shows a list of assigned delivery orders with details like customer name, address, order items, and delivery time window.

3. Select an order to begin

The driver selects the first order from the list, and the app provides detailed instructions, including a delivery route.

4. Optimize route

If multiple deliveries are scheduled, the app automatically optimizes the route to reduce travel time, considering factors like traffic and delivery priority.

5. Mark order as ‘in transit’

Once the driver starts the delivery, they mark the order as ‘In Transit’ on the app, updating both the restaurant and the customer in real time.

6. Navigate to delivery Location

The app offers GPS navigation, guiding the driver to the customer’s address with turn-by-turn directions.

7. Notify customer of arrival

When close to the delivery location, the app sends an automatic notification to the customer, informing them of the estimated arrival time.

8. Complete the delivery

Upon arrival, the driver marks the order as ‘Delivered’ in the app. If required, they can collect proof of delivery, like a photo or a digital signature.

9. Update delivery status

The software automatically updates the restaurant on the completion of the delivery and records the time, ensuring all stakeholders are informed.

10. Move to the next delivery

After completing the order, the app prompts the driver to move on to the next delivery on the list or return to the restaurant.

Delivery Management Software: It’s not just about deliveries

By now, you probably think delivery management software is all about delivery services and deliveries (duh, right?). But let’s look at some hidden perks that make this software a game-changer for business owners like you:

Improved customer experience

Happy customers are loyal customers. With automated notifications, real-time tracking, and prompt deliveries, your customer satisfaction levels will skyrocket. And when customers are happy, they come back (and bring friends).

Reduced fuel costs

It’s no secret that fuel costs are through the roof. But with route optimization in place, your drivers will take the shortest, most efficient routes, cutting down on fuel expenses. 

You’ll be seeing fewer trips to the gas station and more savings in your bank account.

Manage your delivery business easier

Managing deliveries is stressful. But with delivery management software handling the logistics, you can focus on what matters most—running your business. It’s like having an extra employee who works 24/7 and never needs a coffee break.

Common mistakes business owners make 

Now, let’s talk about the elephant in the room: mistakes. No one likes to make them, but they happen. Here are some common missteps to avoid when choosing your DMS:

Focusing only on price

We get it, budgets are tight. But choosing the cheapest option often means sacrificing features that could save you more money in the long run. 

Instead, focus on value—what features are you getting for your investment?

Ignoring customer support

Things go wrong, software glitches happen. Make sure the provider you choose offers reliable customer support. If your system crashes on a busy Saturday night, you want someone available to help ASAP.

Skipping the free trial

Most delivery management software offers a free trial. Use it! Test the software thoroughly before committing to a long-term contract. 

You’ll want to ensure it fits your needs, not just on paper but in real-world use.

Now that you’ve mastered the concept of delivery management software, let’s see what Australian expert and founder of Zoom2u Technologies (ASX:Z2U) Steve Orenstein says about the key ingredients in the delivery process. 

Speed of delivery in logistics 

Speed. In today’s fast-paced world, speed is paramount. Customers expect quick deliveries, and companies that can provide this stand out by efficiently managing their entire delivery business.

“The best deliveries are speedy deliveries. Same day delivery (or next day, depending on the time the product is ordered) is what wows customers,” says Orenstein.

Give customers choice: gather customer feedback

Choice. Offering field service businesses choices in delivery options (e.g., standard, expedited) allows them to select what best fits their needs.

“The customer needs the flexibility to choose a time window and be confident that it will be delivered on the day and in the window they choose,” says Orenstein.

Communication helps in improving customer satisfaction

Communication. Keeping customers informed about their delivery status is vital. Real-time tracking and regular updates ensure customers know when to expect their parcels.

“The delivery drivers should be able to communicate with your customers if needed, and vice versa,” says Orenstein. 

How to problem solve in the delivery process

Problem solving. Issues can arise during delivery, such as wrong addresses or damaged goods. Having a robust problem-solving mechanism ensures these issues are resolved quickly and efficiently.

“If you can make sure that when there’s a problem the customer has the option to give feedback directly to you. You can fix it quickly and they are more likely to feel looked after than frustrated,” he says.

Delivery management software: Help with e-commerce boom

Verified Market Research reports the trend of going paperless and the high adoption of automation are expected to fuel the global delivery management software market. Added to this is the boom in the e-commerce market.

The report emphasizes that e-commerce has changed significantly in the last decade, and that it has become almost impossible to capture and retain customers without tapping into home delivery.

“Unless one is catering to the growing percentage of customers who look for businesses that can provide them with the quick delivery they require, you’re going to lose out,” reads the report. 

The Future of Delivery Management Software: What’s Next?

Delivery management software is already changing the game, but the future looks even brighter. 

With the rise of AI, we can expect to see even more advanced features like predictive analytics (foreseeing delays before they happen), fully automated delivery processes (hello, drones!), and smart contracts that eliminate the need for paper signatures.

The industry is moving fast, and if you’re not staying ahead of the curve, you’ll be left in the dust. So, embrace the tech now, because delivery management is only getting smarter, faster, and more efficient.

Let’s recap: Must-have software

Delivery management software isn’t just a nice-to-have anymore—it’s a must-have. Whether you’re delivering sushi or shipping pallets, this software is the secret sauce to making your business run smoother, faster, and more profitably. 

Key takeaways:

  • Real-time tracking, route optimization, and automatic notifications are essential features.
  • Choose a system that fits your current and future business needs.
  • Delivery management software can boost customer satisfaction, reduce costs, and simplify operations.
  • Test before you commit and avoid the common pitfalls.
  • The future of delivery management is AI-powered, and it’s coming fast!

NOW READ: Industries Transformed by Real Time Tracking

Photo Credit: Canva

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About the author

Sharl Els

Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.

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