Increasing Operational Efficiency in Your Parcel Networks

23 May, 2019

The global e-commerce boom has opened new opportunities for parcel companies. Millions of home deliveries are generated each day and this growth continues steadily. But then, growing challenges such as the volatility of volumes and labor shortages among others pose a threat to profitability. Here at SendMySipment.com, we believe that by keeping costs under control, parcel delivery companies will be able to increase operational excellence. How can they do this? 

 

Adopting a modern business model

The majority of parcel volumes in the past were B2B services which unlike today are quite stable. The old business networks are usually fixed and can easily accommodate these demands. The advent of e-commerce has changed all of these. While growth has been dynamic and growing at double digits, volumes have been volatile. 

Seasonal factors among other things can easily cause a spike in volumes. Parcel delivery companies have to adopt newer business models that can easily accommodate this volatility and dynamics by finding the right balance between fixed and variable costs. At SendMyShipment.com, we advise that parcel delivery companies start adopting new and modern business models to meet today’s entirely different needs. 

 

Incorporating AI and advanced planning into business operations

In your quest to create a more dynamic parcel network, it makes sense to look towards newer and more advanced solutions such as artificial intelligence and advanced planning. Rather than see AI as automation intended to take jobs away, it makes more sense to see this as a complementary system that will help you get better at planning especially as this relates to volume anticipation to better adjust as far as the use of depot and routes and personnel needs are concerned. This will make parcel volumes forecasts better with more insights into origin-destination forecasts, delivery area forecasts, and shipment flows between cities. With AI, projections and forecasts may be as high as up to 90% in most cases.

 

Making a sense out of the last mile

From our experience here at SendMyShipment.com, last mile deliveries usually account for more than half of the total costs for shipping a parcel. While most delivery routes are somehow planned in a static way, smart forecasts with the help of advanced technologies can be used in re-plotting routes daily to maximize van and driver availability. The use of AI can fit into this area as well with self-learning algorithms that can keep on improving efficiency. 

Truth is there is pressure, much pressure on businesses to adopt new technologies to increase profitability. Recent pilot projects have shown that incorporating new AI technologies can improve costs from about 2% to 5%. But then, this is not to say that incorporating AI into your business operations should be done overnight. It can be a gradual process that will, later on, spread every facet of your network. However, what is important is not to be left behind by competitors while waiting for other solutions.

 

SendMyShipment.com

Here at SendMyShipment.com, we are totally committed to helping you make absolute sense of your parcel and e-commerce logistics needs. Our strategic partnership with some of the best carriers in this industry means we can always guarantee value and efficiency.

You can get started today. Log on to our website at www.sendmyshipment.com with details of your shipment to get free quotes at competitive rates from multiple carriers. You can also contact us at info@sendmyshipment.com for additional information.