2022 is coming! During this time of year, it’s common to reflect on lessons learned and to plan for the next year. Businesses in the delivery industry have a lot to think about. You’ve dealt with a variety of challenges in the past year, from rising shipping costs to changing customer expectations.
Last mile delivery is getting more time-consuming and expensive. If you don’t optimize your process, inefficiencies can lead to high costs — driving up your overhead and cutting into your profits.
Here are four ways that you can increase delivery revenue in 2022:
Reduce Failed Deliveries
According to one study, about 5 to 10 percent of all last mile deliveries fail. That’s why shipping accuracy is such an important thing to prioritize. If you could decrease that number by just one or two percent, it would result in thousands of dollars of savings every year.
There are a number of reasons why deliveries fail:
- The customer is not expecting a delivery (no prior notification)
- No delivery scheduling options (no time windows)
- Mistaken address
The right courier software can help you with each of these challenges, with features such as automated notifications, route scheduling, and address validation.
Nothing slows a delivery business down more than inefficient routes. Route optimization software can help you get the most out of your drivers. It’s common to see a 50% to 70% increase in daily capacity when delivery businesses start using route optimization. These improvements result in savings on vehicle maintenance, fuel, and personnel costs.
Smart route optimization takes a variety of factors into account, including weather, time windows for collection and delivery, up-to-date traffic data, and more. Route optimization is quick to implement and is one of the easiest ways to save money and increase capacity.
Increased pricing isn’t for everybody. If you’re starting a new business and plan on using low rates to undercut the competition, then this may not be the best option for you. But if you’ve been around for several years and haven’t increased your pricing recently, then there’s a good chance that you are leaving some money on the table.
Since March 2020, the cost of delivery has skyrocketed. There are a variety of factors involved, such as increased labor and fuel costs, and growing demand. If you haven’t raised your pricing in several years, now might be the time to give it some careful consideration.
Finding the Right Software Solution
Finding the right software for your business is one of the biggest things you can do to increase your profits in 2022. In addition to automated notifications and route optimization, delivery software can help you to organize your billing and invoicing. Billing procedures that used to take days to complete can be automated. This is just one of many time-saving features.
OnTime 360 is a trusted last mile delivery solution for thousands of companies across dozens of industries including logistics, food, pharmacy and more. It has all the tools you need to complete your delivery routes more efficiently and accurately.
To learn more about OnTime 360, book a live demo or contact us.