Last-mile logistics can benefit from Artificial Intelligence and Data Analysis | Technology
|Last-mile logistics can benefit from Artificial Intelligence and Data Analysis|
In last-mile logistics, Artificial Intelligence and Data Analysis are becoming increasingly important
In this special guest feature, Anar Mammadov, founder of Senpex, highlights how powerful data analytics and AI tools are at their disposal for delivery logistics companies, and part of the innovation in this field has been ensuring that customers can access this data. Anar is a software development professional with over 15 years of extensive experience in enterprise solutions and mobile app development. In addition to his extensive software experience, he is a hands-on, results-oriented entrepreneur. Senpex Technology is a new web-based and mobile application, to provide personalized courier delivery and logistics services to our customers with ease and cost-effectiveness. Senpex can be used 24/7 with no interruptions to your delivery needs.
While the last-mile logistics process may seem simple on the surface (getting a product from point A to point B), the entire process is generally much more complicated than that. To serve their customers in an efficient and timely manner, delivery logistics companies must streamline their operations, which involves processing data from many different sources to create the best possible solution.
Delivery logistics companies have powerful data analytics and AI tools at their disposal, and part of the innovation in this field has been ensuring that customers can access this data. An analytics dashboard allows customers to understand what is happening with their delivery orders and ensure their precious business is in the right hands.
Route optimization with Data Analysis
The primary way delivery logistics companies use AI and data analytics in last-mile deliveries is to optimize routes. Delivery is about getting something to its destination on time in less than 1 hour, and that requires you to be efficient and fast with your routing logistics. Optimizing a delivery route is much more than avoiding traffic, as a rush-hour traveler would need, which is why data analytics is necessary for success in the field.
One of the most common issues with popular consumer-facing delivery companies like Doordash and Uber Eats is driver error. When you have a driver picking up multiple orders from multiple sources for multiple destinations, there is a chance that the orders will get mixed up. On the other hand, having multiple orders for a pickup or multiple pickups for a delivery will result in fewer errors. This is the solution offered by delivery logistics companies on the business side.
The success of this type of strategy boils down to implementing the right drivers for the right orders. Proximity is certainly an essential factor in fast delivery, but there are other factors that need to be taken into account as well. For example, if the driver closest to the pickup location cannot handle the demands of that particular order, it might be better to hire another driver for that pickup. Analysis of available data enables dispatch teams to assign drivers appropriately.
To streamline the dispatch process, delivery logistics companies create profiles of their drivers to help them place the right orders. Data such as its performance metrics can be critical in determining whether or not a conductor is the best fit for a given project. Driver performance data, such as whether they were punctual and responsible, or have good reviews and ratings, is also critical in determining what drivers will be paid.
Having this data makes it so much easier when it comes to delivery fulfillment in higher numbers. If your delivery drivers arrive on time, your customers are happy, which leads to a better perception of your business by your customers. Remember that your customers are trusting you with their business; If you do anything to violate this trust, be it delaying or messing up an order in transit, your business will suffer along with theirs.
Information Security in last mile logistics
It is crucial that stored delivery data is kept secure. Drivers should only be able to access pickup and return information while delivering. While a certain level of information is necessary to enable the driver to get from point A to point B efficiently, the need for this information ends once the delivery has been made. Restricting this information on a “need to know” basis will ensure the safety of everyone involved.
One of the ways delivery logistics companies can help protect and secure information is by integrating their API into an existing e-commerce system. In doing so, delivery logistics companies are changing their role from intermediary to partner. The company is using data already collected by the customer, not collecting it themselves, thereby eliminating the need for more secure collection practices.
Ensuring information security is especially important when handling information of a highly confidential nature, such as personal data, medical data, etc. Confidentiality and discretion are paramount in these matters, as the information involved in these deliveries can significantly affect the lives and businesses of customers.
Finding the best last mile logistics solution can be tricky, especially as there is often more than one way to approach a challenge. However, there can only be one "best" solution, and finding it requires analyzing data and looking at the problem from several different angles. The sheer amount of information these companies work with can initially be overwhelming. Still, having the right tools and security measures in place will result in a smoother operation.