In today’s dynamic logistics environment, the quest for efficiency and customer gratification remains paramount.
This increases the pressure on third-party logistics providers (3PLs) and fleet managers. As new demands arise, can carriers meet every requirement of supply chain operations? Can carriers also provide every service and vehicle demanded by customers?
They probably cannot because the complexity and cost of choosing a carrier precisely matched to the needs of each shipment would be high. Yet, new options — powered by advanced technology — will support maximized fulfillment, greater efficiency, improved customer service and a reduced carbon footprint. Businesses now have the freedom to match carriers to their more specific needs seamlessly and simultaneously, loosening the grip of core carriers on logistics operations.
That freedom comes from technology that removes barriers to fleet diversification, opening a broader selection of vehicle types as well as drivers with unique experience and skills that support optimized last-mile operations.
Five essential strategies to realize the benefits of fleet diversification are:
1 Fleet Augmentation by Leveraging Last-Mile Providers
Working with a core group of carriers who meet many of the most critical supply chain requirements is no longer “good enough.” Now, to remain competitive, companies can utilize a more diverse group of vehicle types — even cars — to fulfill delivery needs.
The prospect of implementing a fleet diversification process may seem daunting. There can be a perceived risk of increased management complexity, a need for more control over third-party vehicles, and the upfront cost of acquiring new types of vehicles or integrating with third-party services. Adding more carriers could diminish the customer’s brand experience or service quality.
These concerns are no longer relevant. Digitally enabled last-mile delivery partners have matured and now offer a nearly seamless transition to gig economy platforms, local courier services, or technology platforms that connect shippers with a network of professional drivers and available vehicles on a per-delivery basis.
For instance, three-pallet shipments often delivered in a box (or even larger) truck can instead be loaded into a lower-cost, more efficient Sprinter van provided by a versatile last-mile carrier.
2 Driver Quality Assurance
Until now, the selection of drivers was almost entirely left to carriers. This will continue to be true in many instances, but what about when a shipment’s delivery can only be completed by drivers who hold TWIC credentials required for maritime port access or who are pre-cleared by TSA for airport access? Or when drivers with solid experience handling hazardous, medical or cold chain shipments are required?
Needs for specific driver qualifications can arise in various situations, including when regular drivers suddenly call in sick, a customer offers an unusual shipment, or when demands surge.
In these “one-off” situations, it’s difficult to deploy specific drivers who have been through a rigorous vetting process and ongoing performance monitoring and with whom there are clear service level agreements (SLAs). Meeting these needs by assigning managers to make deliveries or scrambling through directories to find a driver adds cost and reduces reliability.
All this can be handled quickly and simply with a technology-based delivery partner that automatically identifies and provides vetted drivers when and where needed.
3 Re-Imagining the Strategic Role of Major Carriers
Primary carriers are ideally selected based on strategic supply chain needs. The benefits of this process can include equipment commitments, predictable service levels, and lower prices. The downsides can also be substantial, with the potential for significant service disruptions when carriers go bankrupt, strikes occur, or equipment becomes scarce.
Now, these risks can be mitigated by augmenting core carriers through a fleet diversification strategy — keeping the relationships and benefits of existing carriers and adding a larger universe of equipment and drivers. With the right last-mile partner, options greatly expand for efficient and reliable deliveries, even when sudden problems arise.
Additionally, the adoption of new fleet sources can motivate existing carriers to sharpen their skills or offer more competitive agreements.
4 Diversifying Carrier Partnerships
Finding and transitioning to one or more last-mile providers isn’t as difficult or time-consuming as it may seem. An excellent first step is to check with industry peers for recommendations, followed by a broader search for potential partners.
The list of candidates can be narrowed by matching carrier capabilities with business needs. Businesses can look for geographic areas served, types of equipment and drivers offered, ease of technology migration, tracking capabilities, key performance indicators and customer feedback available via the web or other resources. Additionally, they can review how drivers are rating the candidates and, above all, learn about candidates’ safety performance and quality assurance processes.
5 Ensuring that Partners Convey Known Brand Experience with Every Customer Interaction
For shippers, the logo on the delivery vehicle is a relatively minor part of their brand experience compared to actual service quality. Carrier partners will retain and win new customers for brands through adherence to specified service levels, packaging and delivery presentation standards, and customer interaction protocols. Technology can also support brand consistency through branded tracking pages, notifications and feedback mechanisms.
Technology-driven last-mile carriers have been in the market for nearly a decade. Look for those with a proven performance record over time and who can demonstrate a solid financial foundation. Partnering with a startup and hoping for the best is no longer necessary.
FRAYT, a Stand-out Example, Is Ready Today
FRAYT is a last-mile delivery solution that has withstood the test of time. In business since 2018, their platform connects businesses with a marketplace of experienced owner-operator drivers who deliver goods quickly and efficiently. Service levels are tailored to the needs of customers.
FRAYT provides a simple platform accessible via an app or web browser. It can also be provided as an application programming interface (API) for larger users. Users have a variety of services available, including:
•Seamless dispatching and delivery management from mobile or desktop devices;
•End-to-end visibility with live tracking;
•Diverse fleet ranging from sedans to box trucks;
•Elite O-O drivers who are rigorously vetted;
•Preferred driver program, allowing shippers to select trusted drivers of their choosing;
•Expedited DASH service for pickup within 59 minutes.
The last mile can also be the most challenging one. This is when shipments can become suddenly costly, delayed or damaged if the carrier doesn’t have the right capabilities. It’s worth the effort to look at how this part of logistics operations can be improved. This report reveals that improvement is needed, and now — with the right partner — a change for the better is easier and faster to make.
Resource Link: www.frayt.com/platform/preferred-driver-program
