DTDC is one of the most successful companies, and its logistics operations are a key part of its success. DTDC has invested heavily in logistics optimization to offer fast and reliable delivery services at a competitive price. One of the ways that Courier Express & Parcel (CEP) companies like DTDC optimize their logistics is by using route optimization software. These logistics planning software help CEP companies plan the most efficient delivery routes possible, considering factors such as traffic conditions, the number of packages being delivered, and the location of warehouses.
The examples above show why logistics optimization is essential in general. Logistics is one of the most important components of every business. Logistics management accounts for a sizable portion of business expenses, especially with rising consumer demands for faster deliveries and ever-increasing fuel prices. Studies have indicated that transportation expenses account for around 40–50% of all logistics costs. Optimizing logistics operations while managing costs is essential for sustained growth and profitability in an industry like courier, express, and parcel (CEP) services.
Some strategic cost-cutting measures that businesses can use for their CEP logistics include the following:
Efficient route planning is part and parcel of a cost-effective supply chain and logistics management process. Optimized routes help businesses reduce fuel consumption, minimize vehicle wear and tear, and maximize the number of deliveries per trip. An advanced route optimization solution like Mojro's Planwyse can help managers decide on their delivery routes depending on daily load demands and other constraints like geographic and infrastructural conditions.
Improved visibility into the supply chain and logistics operations can help CEP businesses lower unforeseen or extra expenses due to missed or delayed deliveries. Although logistics process disruptions are unpredictable, managers can use an advanced solution like Executewyse to get regular updates on on-ground conditions. This will make them aware of traffic blocks, damaged roads, etc, and empower them to make swift route-changing decisions. Delivery drivers can reduce their idling time in this way and reach the delivery spots on time. Improved visibility into the logistics operations can also enhance client loyalty and satisfaction.
Inefficient packaging and container selection can lead to vans making multiple trips, causing an increase in logistics costs. Mojro's Packwyse can help businesses tackle this issue using automated loading features. Packwyse can automate and optimize carton selections and configurations using cartonization logic, eliminating free spaces and maximizing vehicle utilization. It offers 3D visualization, enabling managers to make effective decisions on packing and loading, maximizing fill rate. Packwyse also provides intelligent information on the packaging required for non-standard materials, limiting resource wastage and associated costs.
Inaccurate or incomplete addresses can confuse the exact delivery spots, often leading to multiple trips around the same area. A geocoder like Mojro's Geowyse can help CEP businesses perform swift address resolutions and identify the exact delivery spots. This reduces vehicle trips, fuel consumption, and overall logistics costs. It also prevents the cost incurred from missed deliveries.
In the fast-paced world of CEP services, cost-cutting logistics strategies are essential to achieving operational excellence, maximizing efficiency, and remaining competitive. By leveraging an effective automated solution like Mojro, CEP businesses can significantly reduce costs while maintaining high-quality logistics services.