Delivery Archives - Bringg https://www.bringg.com/blog/delivery/ Mon, 05 May 2025 20:51:18 +0000 en-US hourly 1 https://www.bringg.com/wp-content/uploads/2023/07/cropped-Logo-1-32x32.png Delivery Archives - Bringg https://www.bringg.com/blog/delivery/ 32 32 Improve the “Out for Delivery” Experience, Create More Customer Loyalty https://www.bringg.com/blog/delivery/what-does-out-for-delivery-mean/ https://www.bringg.com/blog/delivery/what-does-out-for-delivery-mean/#respond Mon, 05 May 2025 19:02:43 +0000 https://www.bringg.com/what-does-out-for-delivery-mean/ Discover how last-mile visibility and delivery accuracy turn the “out for delivery” moment into a loyalty driver.

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Customer expectations change when they receive the “out for delivery” notification. They check for an ETA and expect a fulfilled delivery promise. 

But what happens when that notification is misleading, vague, or nonexistent? What happens when customer excitement is replaced by disappointment and frustration at a lack of transparency or a failed delivery promise? The offending business loses customer trust and loyalty. 85% of shoppers won’t purchase from a retailer again after a negative delivery experience and 79% of retailers and 3PLs agree that delivery impacts customer loyalty

Trust is on the line when a package is “out for delivery.” Without real-time visibility and delivery accuracy, that trust breaks fast and 31% of retailers and 3PLs say visibility is their toughest challenge. That gap doesn’t just affect operations—it also impacts customer loyalty and long-term revenue. However, there are many strategies businesses can employ to maximize their last-mile efficiencies, improve customer experiences, and maintain trust. 

Key takeaways:

  • As eCommerce grows 14.5% through 2026, last-mile technology investments will shift from competitive edge to survival baseline.
  • Customer loyalty hinges on last-mile investments in visibility, accuracy, and delivery experiences that meet changing preferences.

Defining the last-mile 

The last-mile is more than the final leg of the eCommerce journey: it’s a digitized, consumer-centric delivery ecosystem where shipments are moved efficiently and with the customer always in mind. It’s the most complex and consequential stage of the supply chain, responsible for 30-40% of all transportation costs and the most challenging step for 77% of retailers.

The last mile is a revenue-critical battleground where delivery promises directly influence conversion rates, brand loyalty, and customer lifetime value​. It’s also the litmus test for operational efficiency, service differentiation, and profitability in a market increasingly shaped by Amazon-level expectations​.

Key steps in the last-mile include: 

  • Delivery promise made before checkout
  • Order placed
  • Order assigned to best-fit fleet
  • Item loaded to vehicle
  • Route optimized
  • Delivery window selected
  • Driver dispatched
  • Real-time tracking enabled
  • ETA shared with customer
  • Delivery executed
  • Feedback captured

The real challenge: last mile visibility and control 

While the “out for delivery” phase seems like the home stretch to the customer, it’s a consequential journey for retailers and shippers where trust is either won or lost. Once a package leaves the distribution point, visibility drops and operational inefficiencies are exposed. A lack of awareness and operation control creates risk for missed SLAs, poor customer experiences, and high last-mile costs.

Common last-mile issues include:

  • Real-time driver location and package status visibility 
  • Failed delivery attempts due to unavailability or incorrect address info
  • Disconnected tech stacks and manual handoffs 
  • Inability to proactively notify customers of changes
  • Extra delivery attempts and increased cost per order

Risks are even greater for big and bulky deliveries. Failed attempts on big-ticket items, which often require on-site installations or complex drop-offs, mean costly redeliveries and frustrated customers.

“Big and bulky deliveries are inherently expensive,” said Ali Kamil, expert associate partner at McKinsey. “Each delivery can take at least 30 minutes to an hour, requiring specialized and certified drivers for installation. This complexity makes it hard and costly. Customer expectations are high, and the delivery has to be accurate and timely. Proper planning and sophisticated tools are necessary to plan these deliveries effectively.”

No accuracy and or visibility reduces trust 

Consumers often consider delivery an extension of a brand and its products. Efficient delivery no longer means fast shipping and little else, which was the number one priority a few years ago. Today, accurate delivery promises matter more than same-day delivery. 

Consumers also prefer cheaper and more transparent delivery options, as well as easier returns, compared to faster fulfillment. 

Ultimately, more reliable and transparent last-mile experiences can make or break trust with a brand. 

  • 82% of customers pleased with their delivery experience will share and recommend the brand to friends and family
  • 72% of customers satisfied with their delivery service are likely to increase purchase levels with that brand by 12%
  • 71% of online shoppers contacted customer service in the past year due to shipping issues; late deliveries and lost orders topped the list of complaints

Invest in improved last-mile customer experiences

The space between the “out for delivery” message and a package’s arrival requires proactive visibility, flexible routing, and customer-centric coordination. 

Here’s how to get this key delivery stage right:

1. Prioritize real-time visibility across stakeholders

  • Integrate technology stacks for shared visibility across dispatchers, drivers, and customer support
  • Ensure real-time driver tracking and live status updates
  • Create centralized dashboards to monitor SLA adherence, exceptions, and performance KPIs

2. Automate customer communications

  • Trigger proactive SMS or email updates when a package is en route, delayed, or delivered
  • Send estimated time of arrival (ETA) windows with live tracking links
  • Notify customers of failed attempts or delivery options in real-time

3. Optimize first attempt success rates

  • Offer flexible delivery slots during checkout
  • Use AI to route deliveries based on customer availability, geography, and past behavior
  • Collect delivery instructions and preferred contact methods upfront
  • Allow customers to update delivery preferences after checkout

4. Create more feedback loops and operational agility

  • Gather customer and driver feedback on failed deliveries
  • Use insights to optimize routing logic, driver training, or pickup/drop-off options
  • Monitor delivery performance by fleet, location, or product category

Last-mile investments like the ones above proved successful for a number of companies:

  • A U.K. grocer saw a 20% last-mile cost reduction with using multiple fulfillment and delivery models 
  • A U.S. furniture retailer experienced $5M and $15m annual CapEx and OpEx savings with increased route density and delivery availability
  • A U.S. auto parts retailer saw 187% increase in order dispatch with automation 
  • A U.S. furniture retailer experienced a 20% stops-per-route increase with better route density 

Don’t let delays and exceptions derail trust

Delays and exceptions happen. Truck loading errors, traffic, bad weather, and poor 3PL coordination are bound to derail deliveries at some point. When something goes wrong, the response strategy matters. Although 85% of shoppers won’t repurchase from a retailer after one negative delivery, many customers may offer additional grace if the business is transparent about an issue and remediates the situation. 

“Proper planning and sophisticated tools are necessary to plan these deliveries effectively.”

Consider these best practices to maintain customer trust during delays and exceptions:

  • Detect and respond to delays in real time with exception management tools 
  • Keep the customer informed, especially when delivery goes off-course
  • Log and analyze exceptions across carriers, drivers, and locations
  • Offer proactive incentives (e.g., a discount code, gift card, or free expedited shipping on the next order) to turn a poor experience into a reason to return
  • Send personalized apology messages based on the severity or context of the delay
  • Give customers more control during disruptions with live, self-service options (e.g. delivery rescheduling, alternate pick up points, or real-time chat support) 
  • Make returns or replacements easy when an order arrives late or damaged
  • Track customer experience data alongside delivery performance and identify repeat issues with specific carriers, routes, or fulfillment partners

High-performing shippers know they can’t prevent every exception or delay. But what separates them from the competition is how fast and efficiently they detect, adapt to, and resolve roadblocks.

Prepare for the future or fall behind

B2B and B2C eCommerce is projected to grow 14.5% through 2026. Soon, last-mile technology will no longer be a competitive differentiator that earns customer loyalty—it will be the bare minimum to keep it. Greater customer satisfaction (and the revenue that comes with it) hinges on delivery orchestration tools, real-time visibility, and customer-centric workflows. Businesses that fail to prepare for more eCommerce-driven delivery will lose customers to the competition as consumers expect more “out for delivery” messages in the future. 

Learn how retailers and logistics companies will orchestrate last-mile excellence this year. Download the 2025 State of the Last Mile Report 

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How big and bulky retailers win Q4 with Q2 investments https://www.bringg.com/blog/delivery/big-bulky-strategies-for-success/ https://www.bringg.com/blog/delivery/big-bulky-strategies-for-success/#respond Wed, 02 Apr 2025 14:33:10 +0000 https://www.bringg.com/?p=20464 How can big & bulky retailers provide exceptional customer experiences that drive ongoing loyalty at scale and without sacrificing margins? Ali Kamil, Expert Associate Partner at McKinsey discusses what it will take to optimize last-mile operations for big and bulky eCommerce.

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Big and bulky eCommerce is complex and costly: 77% of big and bulky retailers say the last mile is the most difficult step in the supply chain and it accounts for 30-40% of all transportation costs.

There’s even more pressure for retailers to succeed during the holiday season because there are greater opportunities for profitability and more online competition each year. In Q4 2024, eCommerce retail sales were 16.4% of total sales—a 9.4 percent increase from Q4 2023.

Successful retailers know that exceptional customer experiences during peak season drive loyalty. However, it’s impossible to build a winning last-mile infrastructure overnight (or even in November) that meets the demands of a busy holiday season.

How can big and bulky retailers evolve their last-mile operations at scale now so they’re better prepared for peak season—all without sacrificing margins? Ali Kamil, expert associate partner at McKinsey, explores this topic with Guy Bloch, CEO of Bringg.

Key takeaways

  • 84-90% of consumers won’t return after a poor delivery experience so seamless delivery, from scheduling to execution, is critical for loyalty.
  • To compete effectively, retailers must “invest in technology, people, and processes. Quite simply, it’s adapt or die.”

Recommended action

  • Peak season success starts now—invest in order visibility, promise accuracy, and optimized route planning to maintain Q4 margins. If available resources can only deliver one, prioritize delivery promise accuracy: it’s the hardest to solve, improves cart conversion rates, and increases operational efficiency.

Related reading: The Last Mile: Key Delivery Strategies for Big and Bulky Delivery 

Big and bulky delivery challenges explained

Guy Bloch: Why is big and bulky delivery so challenging?

Ali Kamil: It’s challenging due to labor constraints, as drivers are limited in the number of deliveries they can make in a day. Deliveries take time and require specialized skills for installation. Proper planning and execution are critical. The process is complex, requiring sophisticated tools for effective coordination.

Why delivery needs to be customer-centric

Guy Bloch: I agree. I’m following the big retailers and their quarterly earnings. Consumer behavior is not just changing in terms of expectations but also in spending patterns. They are spending more on consumables, which changes margins and impacts earnings. Deloitte’s recent research indicates a 30-40% drop in consumer electronics and home furnishing spend since early 2022. 

If margins are already down, and last-mile delivery is expensive, how does this impact the economics of last-mile deliveries for big and bulky items?

Ali Kamil: Big and bulky deliveries are inherently expensive. Each delivery can take at least 30 minutes to an hour, requiring specialized and certified drivers for installation. This complexity makes it hard and costly. Customer expectations are high, and the delivery has to be accurate and timely. Proper planning and sophisticated tools are necessary to plan these deliveries effectively.

“About 84-90% of customers do not return after a poor delivery experience.”

Delivery impacts repeat business 

Guy Bloch: Interesting. Amazon approaches online retail differently from Target and Walmart. It combines technology and logistics to make deliveries exceptional, fast, and inexpensive. Consumers today expect to see delivery options and accurate time slots when they check out. 

If delivery is not accurate, something like 84% of consumers won’t return. Is this what you’re seeing as well?

Ali Kamil: Yes, about 84-90% of customers do not return after a poor delivery experience. The ordering experience needs to be seamless, allowing customers to pick delivery slots and ensuring timely and accurate deliveries, including any installation needed. 

Big players provide not just delivery but also a frictionless eCommerce experience. Making the delivery process smooth and predictable is key to retaining customers. This is why retailers have to think of the right capabilities and technology to invest in. 

Core strategies to compete effectively

Guy Bloch: Working closely with big and bulky retailers, we see these challenges. Labor, carriers, and visibility are key issues. Digitizing and connecting every step of the last mile is crucial for coordination and optimization. What do you advise big and bulky retailers to do to compete effectively?

Ali Kamil: They need to invest in technology, people, and processes. Quite simply, it’s adapt or die. Having the right technology to integrate and coordinate deliveries, training drivers, and creating efficient processes are crucial. Providing seamless eCommerce and delivery experiences will help them compete.

How to prepare for the holiday season

Guy Bloch: If big and bulky retailers don’t adapt, they risk losing customers to those who can provide a better delivery experience. What should they focus on in the next six to eight months to prepare for the holiday season?

Ali Kamil: They should invest in customer experience, making the ordering process seamless, providing delivery promises, and ensuring visibility and accuracy. Investing in technology to digitize and connect their operations is essential. They should focus on high-impact areas and adopt a strategic approach to be ready for the holiday season.

“Don’t try to boil the ocean; start with quick wins and expand. Invest in technology and best practices available in the market.”

Guy Bloch: What should be the investment areas for a c-level executive in big and bulky retail?

Ali Kamil: Invest in digitization to create a seamless customer experience. Focus on planning and optimizing routes to maximize driver utilization. Ensure third-party carriers provide the same level of service. Analytics and continuous improvement are also crucial for long-term success.

Guy Bloch: Summarizing our conversation, it’s clear that adapting is crucial. Focus on technology, people, and processes. Don’t try to boil the ocean; start with quick wins and expand. Invest in technology and best practices available in the market. What are the next steps for those who want to adopt new technologies?

Ali Kamil: Start by evaluating your current customer experience and benchmark it against industry standards. Invest in technology that enables seamless customer experience and efficient planning. Ensure your processes are agile and your drivers and third-party carriers are empowered to provide excellent service.

Big and bulky retailers thrive during peak season with proactive investments like digitized operations, well-trained delivery teams, and streamlined last-mile processes. The path to repeat business and long-term growth starts with smarter tech and a seamless customer experience. Learn how leading brands are preparing in the Big & Bulky Strategy Guide.

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Retail’s New Mantra: The Future Is “Better together”—Insights from NRF 2025 https://www.bringg.com/blog/delivery/insights-nrf-2025/ https://www.bringg.com/blog/delivery/insights-nrf-2025/#respond Wed, 26 Feb 2025 17:13:13 +0000 https://www.bringg.com/?p=20736 The National Retail Federation (NRF) conference, “Retail’s Big Show,” held annually in January in New York City, has earned its reputation as the premier event for the retail industry. With nearly 5,000 brands and 1,000 company exhibits present this year, NRF is a launch pad for innovation, strategic M&A deals, and transformative partnerships that set […]

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The National Retail Federation (NRF) conference, “Retail’s Big Show,” held annually in January in New York City, has earned its reputation as the premier event for the retail industry. With nearly 5,000 brands and 1,000 company exhibits present this year, NRF is a launch pad for innovation, strategic M&A deals, and transformative partnerships that set the tone for the year ahead.

Bringg CEO Guy Bloch was among the industry leaders in attendance. After a packed few days of meetings with senior executives and speaker sessions, Bloch shared his biggest takeaways. His insights are also supported by other thought executives who spoke at the event.

Ultimately, Bloch’s reflections offer retailers a quick-but-potent prescription on what they should be thinking about this year to see last-mile success.

Key takeaway: “Better together”

  • Businesses will form strategic partnerships and concentrate on their core strengths to create an interconnected ecosystem that improves last-mile fulfillment and customer experience.

The most popular topics at NRF 2025

Between the more than 175 speaker sessions and countless peer-to-peer conversations, a huge variety of important last-mile topics were discussed at NRF. Bloch outlined the three topics he found most vital across his time at the event.

Topic 1: Partnerships and ecosystem collaboration

“A recurring theme was the shift toward a ‘better together’ mindset,” said Bloch. “Companies are increasingly focusing on their core strengths and building partnerships to fill gaps in areas where they lack expertise—whether in last-mile delivery, fulfillment, customer experience, and more. This collaborative approach is driving a more interconnected ecosystem, where technology providers, retailers, and logistics partners work together to deliver value.”

“The retail ecosystem thrives when it works together.”

Topic 2: The return to core competencies

“After two years of internal adjustments—including reorganizations, revived teams, and recalibrated strategies—companies are returning to their core competencies while innovating to propel the digital transformation of retail,” said Bloch. “The emphasis is on creating sustainable, scalable solutions that drive operational efficiency and customer loyalty.”

Topic 3: AI and automation in last-mile delivery

“Retailers and technology providers are doubling down on AI-driven innovations to optimize the last-mile delivery experiences,” said Bloch. “This includes smarter routing, predictive demand planning, and enhanced delivery orchestration to meet customer expectations for speed and reliability.”

Levi Strauss & Co. was represented at the event by Chief Digital Officer Jason Gowans, who spoke on a panel with executives from Ralph Lauren and Starbucks. Gowans shared details of how Levi’s is using AI in a new platform called BackPocket, which gives in-store associates a 360-degree view of the shopper across all channels. The AI-driven solution helps associates quickly personalize the customer experience all the way down to determining the most convenient delivery method if a particular product isn’t in the store.

AI investments are also happening faster than ever in retail according to Joe Austin, VP of solutions architecture at Comcast Business.

“When decision-makers make a decision, they’re ready to move,” Austin commented during the conference. “Before in retail, we would see a decision-maker want to implement a new technology, and they were okay with a 12- to 18-month rollout, especially major nationwide, large retailers. Now when those CIOs are making that decision and they want to bring in the latest AI technology, they want it implemented tomorrow, and they’re ready to invest and they’re ready to grow.”

The biggest learning: Collaboration will be key

The last two years have been about adapting to the new economy. But Bloch said the learning from NRF 2025 is clear: “The industry is now pivoting to growth through collaboration and targeted innovation.”

“Companies are more willing to share components of the value chain where they lack strengths, ensuring better outcomes for everyone,” Bloch continued. “This collaborative mindset—paired with an accelerated focus on the last mile—shows that the retail ecosystem thrives when it works together.”

Ellen Svanström, chief digital information officer with H&M, echoed the need for partnerships during a panel discussion with leaders from Qurate Retail Group and Tapestry. She said partnerships and industry collaboration will be vital to keep up with the rapid pace of technological and customer changes.

“No single player can succeed alone in this rapidly evolving market.”

The universal appreciation for partnerships this year

When asked what takeaway from the event he found most surprising, Bloch  doubled-down on the excitement around “the universal acknowledgment that no single player can succeed alone in this rapidly evolving market.”

He said, “Even the largest retailers are embracing partnerships, combining their strengths with technology providers and delivery networks to build hybrid, scalable solutions. This openness to collaboration signals a profound shift in the market and highlights how the last mile is becoming a shared strategic priority across the ecosystem.”

More retail collaboration means there will be more opportunities to guarantee customer satisfaction in the last mile. By working together, retailers will ensure that products are delivered on time and in excellent condition, leading to a positive customer experience. This increased satisfaction not only fosters loyalty among existing customers but also incentivizes them to become repeat buyers, generating greater revenue and long-term success for retailers.

A collaborative approach among retailers will also optimize delivery routes, reduce shipping costs, and diversify delivery options like same-day or scheduled delivery. By sharing resources and expertise, retailers can create a more efficient and sustainable last-mile delivery network that benefits both businesses and consumers.

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The State of the Last Mile Summary: Key Insights from 500 Retail and Logistics Leaders https://www.bringg.com/blog/the-state-of-the-last-mile-summary/ https://www.bringg.com/blog/the-state-of-the-last-mile-summary/#respond Wed, 26 Feb 2025 16:20:47 +0000 https://www.bringg.com/?p=20731 2025 will be a big year for eCommerce. Consumer expectations will continue to evolve around more flexible delivery options during pre- and post-purchase stages. Macroeconomic shifts are also happening more frequently and with greater magnitude, so retailers and logistics services providers (LSPs) still face persistent supply chain challenges. Because of its complexity, the last mile […]

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2025 will be a big year for eCommerce. Consumer expectations will continue to evolve around more flexible delivery options during pre- and post-purchase stages. Macroeconomic shifts are also happening more frequently and with greater magnitude, so retailers and logistics services providers (LSPs) still face persistent supply chain challenges.

Because of its complexity, the last mile is a key proving ground for revenue, logistic efficiency, and customer loyalty. Last mile operations highlight whether retailers and LSPs invested in the right technology to balance their supply chain and cost challenges with customer satisfaction strategies (which are often at odds).

Bringg uncovered details of how well retailers and LSPs are performing in the last mile. The State of the Last Mile: Challenges, Insights, and Implications surfaces survey results from 500 director-level professionals in the U.S. and U.K. The leaders shared the last-mile challenges, wins, and investments they experienced in 2024 as well as what their strategies are for 2025.

The key findings were clear: Continuous last-mile improvement isn’t a differentiator, it’s an imperative.

  1. The last-mile directly impacts cart conversion, customer loyalty, and customer lifetime value.
  2. Despite being the hardest last mile element, 82% of enterprise retailers plan to invest in more 3PLs.
  3. Retailers are investing in solutions like last-mile orchestration, AI automation, same-day delivery to stay competitive and cost effective in 2025.

The full report has over 20 pages of statistics and insights. Some of the biggest findings are summarized below but be sure to explore the full report to see much more.

The last mile impacts customer loyalty

Last-mile deliveries are a crucial step in the supply chain because of how closely they’re tied to the overall shopping experience: 65% of consumers will abandon a retailer after two to three late deliveries. Unfulfilled delivery promises and missed expectations quickly erode customer trust and lead to lost sales.

Survey respondents agreed. In fact, 75% stated that the delivery experience directly impacts:

  • Cart conversion
  • Customer loyalty
  • Lifetime value

This was also demonstrated through online cart abandonment. Three of the biggest causes for failed checkouts are delivery-related:

  1. Delivery costs are too expensive
  2. Checkout process is too long or complicated
  3. Lack of delivery options

Retailers also said the number one reason they lost customers was because their competitors offered more delivery options.

The costs and benefits of 3PLs

Working with 3PLs unlocks greater operational efficiency for many businesses but the wins come at a cost.

The number one last-mile challenge across respondents was “working with multiple carriers.” Why? There’s less control and it’s difficult to “maintain consistent customer experiences” across multiple operators.

And yet, two-thirds of retailers use 3PLs for more than 50% of all their deliveries. More specifically, 82% of enterprise retailers said their 3PL investments will either stay the same or increase in 2025. There’s good reason for the increased investment: 48% of businesses said 3PLs improve their delivery times.

The reality is that 3PLs are a necessary investment for business scalability. Retailers use 3PLs to regionalize fleets for faster delivery times because it’s more cost-effective than investing in their own fleets.

The biggest last-mile investments

Consumer preferences, business demands, and last mile technology continues to evolve. Businesses that want to stay competitive should grow alongside those elements—well-planned technology investments are fundamental to this evolution. However, there are often significant last-mile investment barriers to overcome for many companies:

  • 40% said business requirements are hard to define
  • 35% said measuring ROI is difficult
  • 35% said costs are too high

New last-mile tech investments are most impactful when they’re shaped around well-defined business needs. Without a clear roadmap, new solutions add complexity rather than streamline operations.

The companies that did adopt new technology in 2024 invested most in:

  • Last-mile orchestration and management tools
  • Digitization tools to automate operations
  • AI technology to personalize the customer experience

Major eCommerce players like Amazon and Walmart set customer expectations for more efficient and flexible delivery options—and those expectations aren’t likely to change anytime soon. So retailers are continually investing in new or expanding last-mile capabilities in 2025. For example:

  • 60% will invest in same-day delivery
  • 31% will invest in express delivery
  • 21% will invest in curbside pickup

Effective digitization and last-mile delivery investments can increase efficiency, reduce costs, and improve customer satisfaction.

However, in order to achieve wins at the customer’s door, leaders have to ask themselves:

  • How fragmented are current last-mile operations?
  • What real-time insights are missing from existing visibility tools?
  • How can AI and ML improve both efficiency and personalization?
  • How should short-term ROI and long-term scalability be balanced?

Businesses manage a great deal during the last mile. The leaders who continue to invest in the last-mile strategies that meet the needs of their business and their customers will be the winners across this make-or-break delivery stage.

Explore the full “State of the Last Mile” report

The insights collected here are only about 50% of what’s present in Bringg’s full State of the Last Mile report. Access the full report to learn:

  • The top reasons retailers lose customers
  • The percent of big and bulky, grocery, and apparel retailers increasing or maintaining 3PL investments
  • How to balance 3PLs investment while maintaining brand experience and efficiency
  • The full list of last-mile technology investments focused on operational efficiency
  • Additional metrics around the biggest barriers to technology adoption

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Key findings from the Gartner Market Guide for Last-Mile Solutions https://www.bringg.com/blog/analysis-gartner-market-guide-for-last-mile-solutions/ https://www.bringg.com/blog/analysis-gartner-market-guide-for-last-mile-solutions/#respond Wed, 22 Jan 2025 22:27:48 +0000 https://www.bringg.com/?p=20714 As 2025 begins, retailers and logistics firms must navigate the evolving last-mile delivery landscape, particularly as more shoppers expect deliveries to rival Amazon’s. To us, this recent Gartner Market Guide for Last-Mile Delivery Technology Solutions underscores this urgency. Bringg discovered that roughly 48% of organizations struggle to meet consumer expectations for delivery visibility. Bringg also […]

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As 2025 begins, retailers and logistics firms must navigate the evolving last-mile delivery landscape, particularly as more shoppers expect deliveries to rival Amazon’s. To us, this recent Gartner Market Guide for Last-Mile Delivery Technology Solutions underscores this urgency. Bringg discovered that roughly 48% of organizations struggle to meet consumer expectations for delivery visibility. Bringg also feels that this highlights a critical need for improvement alongside a broader push to meet additional customer demands like greater sustainability.

This piece serves two purposes. First, it summarizes some of the biggest insights from Gartner’s report—outlining shopper expectations as well as business last-mile priorities in 2025 and beyond. Second, the article surfaces Bringg‘s analysis of the Market Guide’s reporting—giving shippers details on what the data means, why these insights are important, and how they can take advantage of the information.

Key Takeaways:

  • “Organizations consider last-mile speed and reliability as most important, but need the least improvement”
  • Businesses ranked their top three improvement priorities across the supply chain as: business innovation, productivity, customer service
  • When weighing a new last-mile investment, “Define your business strategy, planning, and timeline to ensure that vendors can grow with changing business needs, including those related to functional and geographic coverage,” wrote Gartner
  • A holistic last-mile approach requires integrating customer priorities with core business objectives

Defining last-mile delivery and its capabilities

Gartner defines last-mile delivery technology based on three key principles.

  • “Last-mile delivery (LMD) technology solutions are specialized, customer-centric transportation management solutions that focus on managing the delivery process by which a consumer receives the products they order online.”
  • “LMD supports internal and external fleets, providing access to carrier networks for non-asset-based shippers. They also provide customer-engagement capabilities, providing a digitized experience to a shipper’s customer that allows end consumers to route, book, track and communicate changes to their shipments through a digital channel.”
  • “LMD solutions focus on the orchestration of the delivery of products, considering more than just different fleet options, such as owned fleet versus outsourced fleets. They also focus on providing enhanced customer experience capabilities to the recipient of the goods.”

There are also a wide range of capabilities mentioned in the report that last-mile solutions offer retailers and shippers in this vital delivery stage:

  • “Internal fleet versus external fleet selection based optimal outcomes”
  • “Route optimization for companies using their own fleets”
  • “Access to external carrier networks through APIs”
  • “Customer web portal branding capabilities”
  • “Visibility and live order tracking”

Where businesses need to do better for customers

It’s no secret that many shoppers want their shipping experiences to rival Amazon’s. However, most companies don’t have inventory spread across hundreds of warehouses and tens of thousands of employees to sort, pick, and ship stock. They also lack the technology infrastructure to mirror the delivery giant’s quick and transparent operations.

Gartner asked logistics operators to outline the investments they needed to make to keep up with customer demand: “According to the 2023 Gartner Last-Mile Operations and Customer Expectations Survey, speed (90%) and reliability (85%) are by far the aspects of last-mile operations that organizations considered as most important.

“However, the same study also showed that, when it comes to meeting customer expectations, organizations need the most improvement in areas such as flexibility, supplier diversity, visibility and sustainability.”

It also reported, “LMD vendors are increasingly putting more development efforts in extending their carrier library and connectivity options, providing more flexibility and service options to shippers.”

Retail and logistics industries made great strides in speed and reliability to keep up with consumer expectations set by companies like Amazon and Walmart.

However, what’s the cost of these efforts? For example, pushing for more speed and reliability may reduce carrier or delivery window options.

According to Gartner, “LMD vendors are increasingly putting more development efforts in extending their carrier library and connectivity options.”

Bringg’s analysis: Three of the four improvement areas—greater flexibility, supplier variability, and visibility for their teams and customers—fall under the umbrella of operational efficiency. It’s clear that as consumer expectations continue to increase, shippers have to improve these core capabilities.

They should address these challenges not only for their customers but for their businesses overall. The retailers and shippers that don’t meet these operational demands could experience higher costs and/or lower productivity than they would if they made a few savvy last-mile investments to improve performance.

How experimentation meets major business priorities

Gartner’s survey respondents pointed to three primary areas of business-level improvement: business innovation, greater productivity, and improving the customer experience.

Gartner also outlined specific tactics retailers and shippers use to stay competitive among those top three priorities:

  • Smaller parcel shipments: Improve packaging utilization and parsing orders to take advantage of lower shipping rates
  • The expansion of micro-fulfillment: Regionalize specific inventory to shorten delivery times and costs
  • Measuring customer satisfaction: Use analytics to pull insights from reviews, returns, and other customer data
  • New fulfillment methods: Invest in “green delivery,” pickup in store, and locker pickup

Bringg’s analysis: Any of the above tactics, and many not listed, could be considered “business innovations” or experimentations if a company doesn’t already employ them. When successful, these innovations lead to greater productivity for the business and customer experiences that consumers want. We believe the first business priorities Gartner uncovered can optimize the second two.

Everything is connected.

All this means that many companies will test new strategies with last-mile technologies in 2025 and beyond. The savviest retailers and shippers will satisfy business and customer needs with a few great infrastructure innovations (or maybe even one).

Reciprocal relationships across the last-mile

Bringg’s analysis: Retailers and logistics service providers (LSPs) across the last-mile landscape shouldn’t separate customer priorities from business priorities. Again, everything is connected.

“These are not standalone goals—they are deeply interconnected,” said Bringg CEO Guy Bloch. “True innovation drives efficiency while enhancing customer satisfaction. It’s not always about massive transformations; sometimes, the most meaningful progress comes from pragmatic, impactful changes that elevate operations and experiences simultaneously.”

The changing last-mile priorities for both consumers and businesses also impact the features that last-mile technology providers build.

“The expansion of micro fulfillment is having an impact on LMD vendors’ roadmaps, as more vendors are starting to include inventory visibility and management capabilities in their solutions to help optimize routing and carrier/fleet selection decisions,” Gartner wrote.

The savviest retailers and shippers will satisfy business and customer needs with a few great infrastructure innovations (or maybe even one).

This cooperation is rooted in consumer calls for greater sustainability.

“Sustainability demands are increasing from consumers and brands, impacting the roadmap of LMD vendors,” wrote Gartner. “The selection of carriers and other capabilities embedded in the delivery orchestration engine allows shippers to establish new service models based on sustainable delivery options.”

Important strategies to prepare for 2025 and beyond

There are myriad factors to weigh when considering new last-mile technology investments. Several of the key recommendations by Gartner provide a framework for retailers in search of new solutions and partners.

  • Specify the functional areas to include, such as: delivery orchestration, fleet optimization, customer experience, post-purchase delivery capabilities, advanced analytics, and warehouse management.
  • “Start with vendors that address your industry and geography. This will increase the possibility of a good functional match, adherence to local requirements and a network of logistics providers that are in your supply chain network.”
  • “Determine company preference for SaaS and cloud versus an on-premises solution because many vendors have only one or the other…involve IT in these discussions.”
  • “Evaluate the vendor’s ability to provide integration to other applications, such as ERP, DOM, TMS or WMS solutions.”
  • “Assess the capacity of the vendor to offer consulting and implementation services that go beyond the software capabilities of the product.”

Bringg’s Analysis: The last mile is the most critical part of the supply chain now. This report shows that retailers and LSPs need effective last-mile solutions to keep up with consumer expectations. Older, home-grown solutions won’t work because they aren’t built for today’s environment. Luckily, last-mile technology is evolving just as quickly as consumer expectations and business priorities across the supply chain. And more retailers and logistics service providers are adopting last-mile technology to keep up with all the changes.

Designing a solution that addresses all the variables discussed here will be instrumental for retailers and shippers as last mile evolutions continue across 2025. The businesses that first connect their customer priorities with their business goals will have the clearest vision to outline the specific tech they need. From there, these companies can experiment with their new capabilities and refine them until they’ve got a winning strategy.

So who has the best chance to succeed this year? Businesses that invest in solutions that simultaneously address great customer experiences, operational efficiencies and cost reductions. Missing the mark in any of these areas could mean losing customers, less productivity or going over budget—all of which can impact market positioning.

With a market that changes so quickly, organizations can’t afford to be the last innovators in the race across the last mile.

Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner, Market Guide for Last-Mile Delivery Technology Solutions, 18 June 2024, Oscar Sanchez Duran, et.al.

GARTNER is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Bringg.

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11 Ways to Reduce Shipping Costs, Increase Margins, and Speed Up Delivery https://www.bringg.com/blog/delivery/reduce-shipping-costs-increase-margins/ https://www.bringg.com/blog/delivery/reduce-shipping-costs-increase-margins/#respond Tue, 21 May 2024 09:48:58 +0000 https://www.bringg.com/?p=20451 With the e-commerce industry continuing to grow, it’s essential to stay competitive, offer premium service, and keep your loyal customers satisfied, all while avoiding fluctuating shipping rates. 
Here we offer 11 tips to slash shipping costs, grow your margins, and speed up delivery.

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Your business’s profit depends on more than just how much you sell—shipping costs and delivery efficiency also impact your bottom line. With the e-commerce industry continuing to grow, it’s essential to stay competitive, offer a top-notch service, and keep your loyal customers satisfied, all while avoiding fluctuating shipping rates. 

In this article, we offer 11 tips to slash shipping costs, grow your margins, and speed up delivery. 

Luckily, if you’re trying to lower shipping costs, there are plenty of options.

Leverage negotiation power 

The power of negotiation factors into most business deals, and shipping is no exception. While you may have an agreement with one carrier, it can be worth branching out to see what others offer—either to jump ship or use as a bargaining chip to lock in a more competitive rate. 

Tip: Since carriers tend to increase their rates frequently, it’s important to stay on top of current tariffs to avoid overpaying unnecessarily.

Rely on a Delivery Management Platform 

One of the best ways to save money, not only on shipping but on other aspects of your business, like staffing and fleet management, is by leveraging a Delivery Management Platform (DMP).

DMPs offer automation, real-time updates, and tracking, streamlining the entire process from checkout to delivery. Plus, data analytics features provide insight into opportunities to optimize your shipping processes and costs.

Invest in route optimization software

A surefire way to decrease shipping costs is to optimize the delivery route itself. Many DMPs include route optimization software to find the most efficient path and avoid congestion. This cuts costs by saving money on fuel and drive time and enables your workforce to focus on other tasks.

Be smart about tracking inventory

Inventory management systems keep track of exactly what you have in stock and where. This information prevents financial losses from accidental overstocking, as well as stockouts, which can lead to rush shipping fees to fulfill orders, putting you at risk of missing your goals for on-time delivery.

DMPs can integrate with your inventory management system, which keeps everything streamlined and ensures every system has accurate information. 

Switch to just in time delivery

Alternatively, use a “just in time” inventory process. This means placing an order with your supplier only when you require the goods, which removes warehouse and inventory costs. 

However, just in time delivery requires you to be on top of demand forecasting, as it’s important to know exactly what inventory you need and when. 

Maximize your warehouse space

While it’s likely you’ll need to store inventory most of the time, you can do it smartly. Organize your warehouse to get the most out of the space available and avoid the need for additional storage facilities. This helps reduce shipping costs since you’ll send everything from one location instead of dealing with variable costs from multiple places.

For example, assess how your space is used currently. See if you can reorganize by storing items based on size and get rid of any old inventory you won’t sell. You can even reduce the width of aisles or other empty spaces to create more room for stock. 

Consider dropshipping 

Dropshipping is the practice of shipping goods directly from the supplier to the customer, rather than involving your business. It can save money on storage and remove the cost of shipping to and from your warehouse. 

Some studies have shown it’s possible to increase profits by 18.33% with dropshipping as opposed to selling products on your own. This is due to fewer costs for storage, packaging, and more. 

Optimize packaging 

Efficient packaging can reduce the cost of materials and shipping. Smaller, lower-weight packages also cost less to ship, allowing carriers to transport more at once. 

Such packaging improvements are attractive to sustainability-minded customers who appreciate environmentally friendly shipping.

According to a case study by McKinsey, one supplier eliminated customized packaging and replaced it with collapsible packages that were transferred to and from local locations by a third-party vendor, thus reducing costs and packaging emissions by 50%.

Get bulk discounts by consolidating shipments

Many carriers charge by volume, meaning the more you ship, the less it costs per shipment. It’s important to note that carriers often provide discounts for bulk shipments. 

By combining multiple shipments into fewer packages, you may qualify for a bulk discount that helps you pay less in shipping costs per item. 

Provide flexible delivery options

Customers appreciate having the ability to choose what’s most cost-effective for their needs—for example, a choice of standard or expedited shipping. If customers frequently choose the lower-cost option, it’ll help reduce shipping expenses. 

Plus, putting the power in customers’ hands makes it more likely they’ll have a great experience and return again, which is key in last mile delivery.

Offer pickup or delivery to locals

If you’re trying to provide an on-demand delivery experience, a quick option is to offer local customers the ability to pick up their goods directly or deliver them to a nearby specified drop-off.

Offering local delivery lets you avoid paying a carrier. If customers pick up directly, you won’t even incur shipping costs. 

Conclusion

Cutting shipping costs can skyrocket your profit, and there are plenty of ways to do it—whether your focus is on negotiating discounts or better rates, leveraging DMPs for route optimization and inventory management, or changing how you store and package your goods. 

Bringg’s all-in-one delivery platform offers route optimization, inventory management integration, real-time delivery tracking, and more to streamline operations and reduce shipping costs. 

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9 Best Grocery Delivery Software Options for 2024 https://www.bringg.com/blog/delivery/best-grocery-delivery-software/ https://www.bringg.com/blog/delivery/best-grocery-delivery-software/#respond Mon, 13 May 2024 17:58:57 +0000 https://www.bringg.com/?p=20443 The demand for grocery delivery is steadily increasing. A recent eMarketer report forecasts the sector to reach 13.7% of all US grocery sales in 2024, with a market share of over $253.8 billion by 2025. Let’s take a look at some of the best ones on the market.

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The demand for grocery delivery is steadily increasing. A recent eMarketer report forecasts the sector to reach 13.7% of all US grocery sales in 2024, with a market share of over $253.8 billion by 2025.

If you’re a grocery or food retailer who hasn’t yet implemented grocery delivery, it’s time to get started. Delivery can open up your business to a whole new customer base, increase sales, and even provide you with data-driven insights into consumer trends, allowing you to optimize your inventory and product offerings.

However, with so many tools on the market, how do you decide which is right for your business? In this review, we round up the best grocery delivery software in 2024.

No matter the size and stage of your business, there’s grocery delivery software that suits your needs. Let’s take a look at some of the best ones on the market.

1. Bringg

Bringg’s unified platform makes delivery simple. Whether working with your own fleet, third-party carriers, or both in a multi-carrier solution, you can manage all aspects of the last mile process, from online ordering and scheduling to delivery tracking, updates, and returns

There are plenty of customization options to suit your unique needs, including tailored service plans and order processing. Plus, Bringg provides data and analytics insights to help you optimize your operations. 

For customers, Bringg leverages machine learning algorithms to predict delivery times and even calculate future delivery slots to ensure adequate capacity.

Though users have noted Bringg’s platform requires some training, it’s very user-friendly and easy to learn. 

Capterra Rating: 4.8
Pricing: Contact for pricing

2. Instacart

Chances are, almost anyone looking for a grocery delivery app has heard of Instacart. With more than 1,400 retailers using Instacart to deliver their goods, it claims 95% of the US is covered by its delivery service.

Instacart’s Fulfillment product is available on its own or as part of the overall e-commerce solution, and can be set up for use with your own delivery staff or contractors. However, the majority of deliveries are completed by external “shoppers,” which is great for saving time but leaves you with less control and involvement in the process.

And, because Instacart is a large, enterprise company, and tends to market toward similar-sized organizations, it’s likely a pricier option better suited to bigger companies.

Capterra Rating: 4.6
Pricing: Contact for pricing 

3. Shipt

Shipt connects food retailers with consumers through a streamlined ordering and delivery process. It provides 24/7 customer support and handles all aspects of delivery, from customer messaging to rescheduling.

However, end users note frustration with the cost and availability of retailers, meaning customers may be more likely to use other services instead. 

Rating: 4.0
Pricing: Contact for pricing

4. Growcer

Growcer enables entrepreneurs to start their own grocery e-commerce business with no coding skills required. It specializes in various business and delivery models, including B2C and B2B, as well as scheduled and on-demand delivery. 

Since Growcer is a new product, there are limited reviews. However, customers like the user experience and ease of setup, but note that customer service is lacking and there are few customization options. For companies starting out, its $2,499 startup fee is fairly pricey.

Capterra Rating: 5.0
Pricing: From $2499

5. OnTime 360

OnTime 360 is a courier solution offering a suite of features for couriers, dispatch, management and administration, and customer tracking. During deliveries, it provides automated notifications and driver tracking to reduce delivery failures. 

However, users report that routing can be confusing, and the client invoicing and payment process has some kinks to work out when it comes to user interface and experience. Plus, while the base cost is fairly low, there are additional costs for more features or users. 

Capterra Rating: 4.3

Pricing: From $39 per month

6. Routific

Routific, geared toward small and midsize businesses, lets you manage the entire delivery process, from route optimization to delivery tracking to payment. Small businesses without extensive systems can upload a spreadsheet of orders, and larger or more tech-savvy companies can integrate existing systems with Routific’s API. 

Online reviews express a common frustration that you can’t communicate directly with customers through the app. Routific also doesn’t support on-demand delivery.

Capterra Rating: 4.9

Pricing: From $49 per month

7. ShopHero

ShopHero provides independent grocers with infrastructure for online shopping, order management, and order fulfillment. It offers integration with more than 70 POS systems, platforms, and partners, enabling retailers to design tailored shopping experiences that include ordering, pickup and delivery, marketing, shopper support, and more. 

Online reviews, while scarce, note that ShopHero is easily customizable. However, customer service isn’t always the most helpful and the product can be buggy. Unfortunately, pricing isn’t published on its website, but reviews refer to it as “affordable.” 

Capterra Rating: 4.4
Pricing: Contact for pricing

8. Onfleet

Onfleet offers a flat rate starting at $500 per month, making it an option for midsize or large companies. Though not specifically geared toward grocery delivery, Onfleet’s route planning software enables grocers to map and execute deliveries with mobile apps, a dispatch dashboard, and automated customer notifications and tracking. 

Reviewers note that Onfleet seems to take a “less is more” approach, so it doesn’t offer as many features as other software solutions, and some additional features incur a higher cost. 

Capterra Rating: 4.7

Pricing: From $500 per month 

9. DispatchTrack

DispatchTrack is used by major brands like Walmart to power their deliveries. One of its biggest selling points is its AI-powered routing, which claims 98% accuracy. 

Users note in their reviews that it’s easy to communicate with customers and share delivery updates, plus routing is intuitive and accurate. However, reviews also state there’s a lack of training or guidance and it’s hard to get details about forthcoming updates or changes.

Pricing isn’t disclosed online—you must contact the company directly to get the details. 

Capterra Rating: 4.6
Pricing: Contact for pricing

Conclusion

With grocery delivery demand continuing to climb, it’s imperative to set yourself up for success. The right software can streamline operations, attract new customers, and grow sales. 

Bringg combines machine learning and automation to simplify even the most complex deliveries. Learn more today!

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How to Unlock Customer Loyalty via Delivery https://www.bringg.com/blog/delivery/how-to-unlock-customer-loyalty-via-delivery/ https://www.bringg.com/blog/delivery/how-to-unlock-customer-loyalty-via-delivery/#respond Wed, 08 May 2024 15:18:08 +0000 https://www.bringg.com/?p=20438 Loyal customers are essential for business success, frequently returning and referring others. Attracting and retaining them requires more than just marketing and sales. Read on as Rhys Mason explains why providing an excellent delivery experience is essential for customer loyalty.

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Loyal customers are key to a successful business—not only are they likely to come back again and again, but they’ll spread the word to their network as well. 

Attracting a loyal customer base takes concerted effort and it’s not always top of mind. Most business owners are intimately familiar with the concepts of marketing, branding, and sales, but these strategies just get customers in the door for the first time. 

A great way to keep customers once you’ve attracted them is by providing a high-quality, swift, and easy delivery experience. This works to keep customers coming back, and you can even reward the most loyal of your customer base with premium options.


Read on for a deep dive into how the delivery experience impacts loyalty, and how you can leverage this for success. 

How does the delivery experience affect customer loyalty? 

Throughout the past decade, a majority of the population—56% of Gen X and 55% of Millennials—preferred to shop online and receive delivery as opposed to physically shopping in-store. Plus, Gen Z is four times more likely to use food delivery services than other generations. Simply put, delivery is popular and it’s only becoming more so. 

The great news is there are plenty of ways to leverage this to drive customer loyalty:

  • Reward customers with premium options. For example, consider offering your most loyal customers the first choice of delivery window, as many grocery delivery services do. 
  • Communicate in real time. Let customers stay in the know about their delivery and any changes to the process by providing real-time tracking and communication. 
  • Offer easy returns. Make it easy for customers to return what doesn’t work for them, and they’ll be happy to come back.
  • Sustainability. Nearly 60% of customers prioritize sustainable and environmentally friendly packaging, making them more likely to patronize a company that provides it. 

5 ways to unlock customer loyalty with the delivery experience 

A seamless last mile delivery experience deserves just as much strategic attention as your sales and marketing processes. One of the best ways to do this is by using a comprehensive delivery management platform (DMP), which lets you manage the entire delivery experience.

Let’s take a closer look at how DMPs can improve customer loyalty.

Maintain up-to-date inventory information

A selling point of the best DMPs is that they can help you maintain the most accurate inventory details, often through an integration with your existing inventory software. This, in turn, gives customers the confidence and satisfaction that they can get what they need, when they need it, and avoid disappointment. 

Plus, you’ll spend less time fielding communication from frustrated customers whose orders couldn’t be completed due to low inventory.

Offer premium delivery options 

There are numerous ways to leverage premium delivery to foster customer loyalty. One is simply to provide it as an option for each delivery—for instance, offering same-day or next-day shipping for an additional charge. This lets customers access fast delivery so they get their products as soon as possible.

Another method is to provide premium options to the most loyal customers, often as a subscription. Amazon Prime, for example, allows customers who purchase an annual subscription to receive free, fast shipping on most products, as well as other perks like access to books, music, and more.

Offer a strong post-purchase experience 

Customers aren’t done once they click “order.” In fact, that’s where most of the important work begins. A positive post-purchase experience entails detailed order confirmation, delivery scheduling, status updates and customer communication, returns, and collection of feedback. Using a DMP like Bringg, for example, lets you provide a great post-purchase experience with ease. By starting with a detailed and easy-to-use checkout experience, you can make delivery as seamless as the ordering process you’ve carefully crafted. 

Track deliveries transparently and in real time

Transparent delivery shows your business is honest and customer-focused. It helps to limit the number of frustrated customers reaching out to inquire about their order—known as “where is my order” (WISMO) requests. 

Reduce customer stress and your team’s workload by using a DMP that provides real-time delivery tracking and keeps customers aware of every step of the process. Even if a package is delayed, informing the customer immediately manages expectations and helps them feel everything is under control. This builds trust in your company and a greater likelihood for return business.

Provide sustainable and environmentally friendly delivery

With a majority of customers seeking options that help contribute to environmental sustainability, appealing to this need will work in your favor for increasing customer loyalty. 

Consider options such as providing sustainable packaging, limiting the amount of packaging used, or offering environmentally friendly delivery services. For example, route optimization helps to reduce mileage and CO2 emissions, which not only makes your service more efficient but will gain you points with sustainability-minded customers. 

Conclusion 

Your delivery experience is just as important to your business’s success as your marketing and advertising plans. One attracts customers and the other keeps them coming back. 

Foster customer loyalty by offering a delivery experience that provides your customers with real-time order tracking, transparent communication, accurate inventory details, premium delivery, and even sustainable packaging. 

Consider using a delivery management platform such as Bringg to simplify and automate the process. Get in touch today to learn how Bringg can help you cultivate happy, loyal customers by providing an exceptional delivery experience. 

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Unlocking Efficiency: The Case for Delivery Management Software https://www.bringg.com/blog/delivery/what-is-delivery-management/ https://www.bringg.com/blog/delivery/what-is-delivery-management/#respond Thu, 18 Apr 2024 16:10:34 +0000 https://www.bringg.com/?p=20415 Your business is important to you, and chances are, you’ve tried doing everything in-house. Learn why using the right delivery management system can free up time so you can focus on running your business.

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Your business is important to you, and chances are, you’ve tried doing everything in-house. After all, you want to ensure only the highest quality for your customers. 

However, the more your business grows, the more of a challenge it is to maintain a top-tier service. You may realize that you are  investing more and more of your internal IT resources to coordinate complex delivery logistics and manage your own fleet. Or headcount related to manually managing delivery operations like routing and dispatching may be climbing. If this is the case, it may be time to consider using a delivery management platform. 

With a delivery management system, you’re free from arduous tasks like route optimization, delivery tracking, and last-minute inventory fixes—you can focus instead on running your business and know that deliveries are in tip-top shape. 

Let’s take a deeper dive. 

What is delivery management?

Delivery management software handles the delivery of goods from your company to your customers. The purpose is to optimize the process to keep delivery operations running efficiently, on time, and with care. 

For instance, solutions like Bringg combine last mile delivery, fulfillment, and returns, allowing your business to expand its capacity and increase its efficiency. 

Why is delivery management important? 

Delivery technology doesn’t just get goods to the right place at the right time, its implications are much farther-reaching. 


Why is delivery management an important part of your business plan? 

  • Higher customer satisfaction and retention: Faster, more accurate deliveries make happy customers. Plus, if a delivery management system can help expand your service area, you may end up with more customers.
  • Increased profits: While there’s an upfront cost to delivery management, a positive ROI is more likely, as there’s no need to spend money on dispatchers to manually map routes.
  • Efficiency: With route optimization, you can reduce delays and excess trips, bringing the customers what they want, faster, while minimizing fuel costs.
  • Competitive advantage: Delivery management lets you set your business apart with reliable delivery and exceptional customer service.
  • More data and insights: With reporting and analytics, data management platforms give you insight into customer behavior, market trends, and delivery performance. You can use this data to improve your service and better your business. 

8 benefits of delivery management software 

It’s clear delivery management can save time, money, and effort, but let’s take a look at some of the main benefits—beyond just handling deliveries for customers. 

  1. Optimize routes for utmost efficiency 

Route optimization uses technology to identify and assign the most efficient route from point A to point B, factoring in variables like traffic patterns and delivery locations. This means that not only will you or an employee avoid mapping out routes, but you’ll also save on fuel costs, reduce wear on your vehicles, and even lower your carbon footprint. 

Bringg’s route planning, for example, lets you automate dispatch and routing operations while still having control of how routes are mapped, based on criteria like time on site, delivery volume, package weight, and more. 


Image of Bringg’s route optimization feature, showing multiple orders, driver schedules, and locations on a map.  Source

  1. Stay on top of fleet maintenance 

Effectively managing your fleet of vehicles requires oversight of maintenance, driver schedules, and overall performance. Delivery management platforms make it easy to keep track of all these moving parts, even allowing you to automate tasks like schedule creation. 

When you use software to track where your vehicles are at a given time, check fuel usage, and monitor any required maintenance, you’ll reduce manual time spent trying to hunt down information. You’ll also likely reduce maintenance costs because you’ll be able to solve issues as soon as they arise, rather than waiting until it’s too late and much more costly. 

You can even use some delivery management systems to replace or augment your own fleet. Bringg, for example, offers multiple delivery options including the use of your own drivers for white glove deliveries or partnering with an external delivery provider—whether that means carriers, third-party logistics, or independent gig workers. 

  1. Increase customer communication

The ability to stay in touch with customers throughout the delivery process is paramount to providing an exceptional customer experience. A delivery management system like Bringg makes it possible to share real-time updates with customers. This means they’re always in the know about the status of their deliveries, including tracking numbers, estimated arrivals, and how to make a return

image of Bringg’s return tracking and feedback interface, including a menu allowing the customer to choose how to make a return, and a map showing estimated arrival time.

Image of Bringg’s return tracking and feedback interface, including a menu allowing the customer to choose how to make a return, and a map showing estimated arrival time. Source

Not only does this help customers stay informed, but it can also set your business apart from others. Proactive, real-time communication manages customer expectations, lowers the chance of questions or issues, and enhances trust in your company. Over time, this can lead to strong customer retention as well as business growth via word-of-mouth from your satisfied customers.

  1. Improve your inventory management

Many Delivery Management Platforms can integrate with inventory management software, enabling you to handle inventory and order fulfillment alongside delivery. Keeping track of inventory in real time allows you to avoid stock issues (whether overstocking or understocking) to ensure products are available when the customer makes an order. 

Aside from simply making it easier to track everything in one place, using a delivery management system with your inventory software lets you view data that can help you forecast order demand, choose optimal locations to hold your inventory, and even reduce costs by consolidating stock locations or carrying less inventory when low sales are forecast. 

  1. Make data-driven decisions

Data provided by delivery management software can offer valuable insight into your company’s delivery performance. With data ranging from driver performance metrics to customer feedback to delivery efficiency trends, you have plenty of information to help you uncover areas for improvement or optimization. 

For example, customer feedback may frequently include notes about environmentally friendly packaging. You could then decide to pilot a strategy addressing these requests and determine if it impacts customer satisfaction and increases business. 

Or, you might find out that market conditions are changing, affording you a chance to pivot as needed before there are any negative impacts on your business. For instance, if you discover that customers are ordering more frequently, you can immediately increase inventory and drivers to ensure you can meet demand.

  1. Reduce risks 

Using software to manage delivery for your business doesn’t just increase efficiency, it can prevent future issues and reduce risks to your business. 

For instance, real-time delivery tracking allows you to monitor traffic situations for delays or accidents, so your drivers can deviate to a more efficient route. Automated alerting helps dispatchers quickly identify and take action on delayed deliveries.. 

A delivery management platform will also allow you to establish driver actions to ensure compliance with local laws, such as requiring ID or signature for specific types of deliveries. Driver actions also help to manage the chain of custody of the goods being delivered, through real-time tracking during the delivery process and proof of delivery via signature or photo when the delivery is complete. Building these actions into the delivery driver’s workflow ensure that steps won’t be forgotten and your business will be in compliance.

Being proactive in this way can head off customer dissatisfaction and damage to your brand that can come with late deliveries or incorrect delivery updates. 

  1. Scale and flex your business as demand fluctuates

Your business isn’t one-size-fits-all, so why should your delivery service management be? You want a delivery management system that can scale with your business and adapt as demands change. 

If your business is in any way seasonal, you likely experience peaks and valleys in customer demand. This means you may have different delivery requirements at different times of the year. An effective system can help by forecasting demand so you can have the right amount of inventory on hand or build up your fleet. 

Bringg, for instance, uses machine learning so you can better manage your inventory. Plus, during busy times, route optimization can make it easier to execute many deliveries efficiently. 

Using a system like Bringg that provides third-party delivery options helps you scale, too. You can access additional drivers without needing to hire, nor worry about laying off or furloughing excess drivers when business levels off. 

  1. Stay in compliance with regulations

Delivery software can monitor compliance with driving regulations, keep track of vehicle maintenance schedules and registration, and notify you of any changes in environmental standards. This is particularly helpful for businesses operating internationally — helping you maintain compliance throughout diverse regions with differing regulations.

Not only does this take manual effort off your plate, but it also helps you avoid fines or penalties. You can rest assured your delivery practices are legal and position yourself to your customers as a trustworthy business. 

Conclusion

With the right delivery management system, you can see increased profits, higher customer satisfaction, and improved business decisions. It can even help you reduce risks like late deliveries or being out of compliance with regulations. 


If you’re in the market to add delivery management software to your company, Bringg has you covered. Check out what Bringg offers today and get on the road to increased delivery efficiency.

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AI and Machine Learning Are Revolutionizing the Last Mile https://www.bringg.com/blog/delivery/ai-machine-learning-last-mile/ https://www.bringg.com/blog/delivery/ai-machine-learning-last-mile/#respond Thu, 11 Apr 2024 10:00:00 +0000 https://www.bringg.com/?p=20407 AI and machine learning revolutionize last mile delivery, enhancing efficiency and customer satisfaction. The sector is expected to surpass $200 billion by 2027 in the US. This article explores their impact on grocery and white-glove delivery, and future trends.

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AI and machine learning technologies are revolutionizing the last mile for grocery and white glove delivery services—improving efficiency, accuracy, and customer satisfaction. These technological advancements will shape the future of a booming last mile delivery sector, which is expected to grow to more than $200 billion by 2027 in the US alone.

In this article, we look at the key ways AI and machine learning are already shaping last mile grocery and white-glove delivery. Plus, we examine how Bringg uses these technologies and consider the future trends that are set to define the industry. 

Optimizing last mile delivery with AI and machine learning 

Let’s take a closer look at how AI and machine learning (ML) are offering strategic opportunities for improving the last mile delivery experience.

Route optimization 

AI algorithms analyze factors such as traffic patterns, delivery locations, and vehicle capacity to optimize delivery routes. This allows for dynamic route scheduling that takes into account travel time, fuel consumption, and vehicle wear and tear—ultimately leading to cost savings and an improved customer experience. 

At Bringg, we’ve implemented ML for predicting Time Onsite more accurately and, for one client, this was able to improve On Time In Full (OTIF) by over 6% during the course of 6 months.  

Predictive analytics 

By analyzing historical data, weather patterns, and events, and implementing ML techniques, AI can predict future demand and delivery times, thereby increasing customer satisfaction. DHL’s Logistics Trend Radar reports that predictive analytics can improve delivery efficiency by up to 20%. 

Customer experience 

AI-powered chatbots and customer service platforms provide real-time updates to customers about their delivery. This allows customers to send in queries, receive ETAs, and initiate returns. Having chatbots handle WISMO enquiries at scale reduces stress on the customer service team and call centers, leading to greater cost savings.

Inventory management 

AI algorithms can help businesses maintain optimal stock levels by analyzing demand patterns, seasonal trends, and market fluctuations.

Reporting and strategy

ML and AI-analyzed data can help businesses better understand their customer base, allowing for strategic decision-making to improve customer retention, satisfaction, and business growth.

Quality control and compliance

AI and ML algorithms are being used to monitor the quality of delivered goods and ensure compliance with regulations and standards. These systems can detect anomalies, identify potential risks, and take corrective actions in real time to prevent delivery errors and safety hazards.

How Bringg uses AI and ML to enhance last mile delivery

Bringg has conducted several pilot programs utilizing AI and ML. Recently, it has integrated ML algorithms into its product offerings, specifically for Estimated Time On Site (ETOS) calculations. This integration is particularly beneficial for grocery and white glove services that rely on timely ETOS notifications for customer satisfaction and waste reduction.

The implementation of ML for ETOS calculations has far-reaching effects on last mile delivery operations. One significant outcome is the unlocking of additional capacity within the fleet. With precise estimations of the time needed for each delivery, companies can optimize their resources more effectively, leading to improved asset utilization. 

This optimization translates into tangible benefits that reduce idle time for vehicles and drivers, ultimately maximizing the efficiency of the entire delivery network.

The integration of ML into ETOS calculations contributes to achieving On Time, In Full (OTIF) delivery targets. By accurately predicting arrival times and service durations, Bringg’s solution helps ensure deliveries are complete and arrive according to schedule. 

This reduction in late deliveries not only enhances operational reliability but also has a direct positive impact on customer satisfaction. Customers receive their orders promptly and in full, leading to a more positive overall delivery experience.

Bringg has also integrated AI to manage its internal knowledge base. This implementation has led to notable improvements in support accuracy and response times. Looking ahead, Bringg plans to extend this AI-driven capability to users by including a chatbot service that will resolve issues and queries even faster. 

Future of AI and ML in last mile delivery

As technological advancements continue to develop and become readily available, the delivery and logistics industry will change drastically in the coming years. Let’s explore some important trends.

Automation and robotics 

AI-powered robots and drones are already being used for last mile delivery in urban areas and remote locations. These autonomous vehicles can navigate through traffic, deliver packages to customers’ doorsteps, and even perform tasks such as inventory management and shelf restocking. 

Research suggests that the use of AI-driven robotics is expected to grow exponentially, increasingly prompted by the logistics and e-commerce industries

Predictive maintenance

AI-powered predictive maintenance systems will become more prevalent in delivery fleets. These systems will analyze vehicle data in real time to predict potential equipment failures and schedule maintenance, minimizing downtime and optimizing fleet efficiency.

Augmented and virtual reality (AR/VR)

AR and VR technologies will be integrated into last mile delivery processes to enhance efficiency and accuracy. For example, delivery drivers could use AR glasses to visualize optimal delivery routes, access real-time inventory information, and interact with virtual assistants for guidance.

Blockchain integration

AI-powered blockchain platforms will enable end-to-end visibility of delivery processes, secure digital transactions, and ensure the authenticity of delivered goods.

Robotic process automation (RPA)

RPA technologies can automate repetitive tasks, such as data entry, order processing, and invoice generation. This will free up human resources to focus on more strategic tasks, improve accuracy, and reduce processing times.

Summary

AI and ML technologies are transforming grocery and white-glove last mile delivery services through route optimization, predictive analytics, customer experience management, inventory management, reporting, and quality control.

Bringg’s implementation of ML for ETOS calculations has improved delivery accuracy, asset utilization, and OTIF delivery performance, leading to enhanced efficiency, accuracy, delivery capacity, and customer satisfaction.

AI and ML applications are increasingly widespread and, as these technologies continue to evolve, we can expect further advancements in delivery operations and logistics management. AI and ML are poised to drive efficiency, innovation, and growth.

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