Businesses working in the hyperlocal delivery industry must adhere to a set of operations. Managers need to make sure that their delivery agents have all the right resources needed to execute tasks. For hyperlocal deliveries to succeed, they also need to maintain their time efficiency. They also need to have a system in place that can reduce manual labour to make the optimisation process seamless and efficient.
Before we see how businesses can do that, let us first understand the process of hyperlocal deliveries. We also need to understand the challenges that these businesses face for easier mitigation. Let us learn more about this in the following sections.
What are Hyperlocal Deliveries
In recent years, there has been a rise in the number of e-commerce businesses. But this can sabotage a lot of local shops and sellers as people can now simply order their requirements online and get deliveries at home. This has led to business models coming up that allow local vendors to still sell their products but still adhere to the process of the last mile.
Last-mile delivery is the process of transporting to its final destination, the customer. In the hyperlocal context, this usually means that a delivery agent collects goods from a shop and then delivers it to the customer. The main role a hyperlocal business plays in this is that they provide the shops with the technology and delivery agents to sell their products online.
As of recently, this process is about more than just products. People can also sell their services online. An excellent example of this is the gig economy. Customers simply request a service provider, like a plumber, and they reach their house after a short while. This process adheres to the requirements of hyperlocal, both geographical and time-bound.
Challenges Executing Hyperlocal Deliveries
There can be several challenges that can make hyperlocal deliveries very tough for managers. Some of these challenges include:
- Time Constraint: For delivery to qualify as hyperlocal, they need to be completed within the time frame of 2-3 hours. This means that the delivery agents in this industry need to make sure that they complete tasks as quickly as possible. Not adhering to this timeline can reduce employee trust in the business and can also affect their overall clientele.
- Geographical Boundary: As the name suggests, hyperlocal deliveries need to be completed within the local neighbourhood. This is why managers need to decide which of their orders are hyperlocal and which are not. While subjective, there needs to be a distance limit so that the deliveries can be done in the set time.
- ETA Adherence: As we mentioned above, hyperlocal deliveries are time bound. Usually, businesses share their agent’s ETA with the customers. This means an added responsibility for the employees to deliver products on time. Otherwise, they can lose their clientele.
- High Operational Costs: It can be very costly for businesses to deliver goods from one location to another. They need to take into consideration their travel costs including fuel. They also need to pay for any damage that the products sustain on the road. This means there is no window for carelessness in this industry.
- Difficult Scheduling: Orders always come in as a trema during the working hours of drivers and employees. But this means that last-mile managers need to make sure that they schedule their tasks properly. They need to assign the same employee several deliveries that fall in the same area to become time efficient. But doing so manually can be a tough situation.
Ways to Mitigate the Operational Challenges of Hyperlocal Deliveries
So how can businesses ensure that their company can overcome the challenges we mentioned above and can make better choices? They also need to keep in mind the productivity and profitability of their business. Here are some ways automation can make optimisation easier for executives:
- Route Optimisation: Using management software has a lot of benefits, but route planning and optimisation are one of the best ones. Managers can easily decide what way their employees travel for their tasks, removing long and dangerous paths. They can also club together delivery destinations and create multi-stop routes. Employees cannot deviate from divided routes as managers get alerts and notifications for route deviations.
- Driver Companion Application: There Is a separate app for the employees. This means that they get all their tasks to their devices and do not have to run after the managers for instructions constantly. They can also see the delivery address and other details for better visibility.
- Live Tracking: Managers are always aware of their employees’ location. This means that they can see which executive is closest to the delivery centre and can assign emergency tasks. This reduces the time spent on planning and communicating with each delivery agent about their whereabouts.
- Career Insights: Whatever the type of vehicle, managers can see their insights. This means they can see if any vehicle requires servicing or maintenance for better safety. They can all see when their vehicle is losing fuel to cut down their operational costs. This can affect theory overall budgeting.
- Reports and Insights: The system provides managers with data. This information can be very important to monitor their business performance and pain points. Thus, managers can make better decisions and also rely on automation for error-less data. They can also store data for long-term study.
We have all at some point opted to order our daily needs items and services to be delivered to our doorsteps. This rise in the trend of hyperlocal deliveries increased a lot recently, especially after the pandemic. This is why the scope of automation also improved with this growth. There is no way managers need to manually ensure the safety of their deliverables and employees.
TrackoMile is the best last-mile delivery management software that can help you optimise your hyperlocal deliveries as well. It has all the right solutions for you to ensure high customer relations and better productivity. So why the wait? Get a demo and see how the system can help your operational transformation!