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TL;DR
- E-commerce spending is expected to reach $910 million this holiday season
- Freight management software allows you to optimize your logistics operation in five key ways:
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Peak shipping seasons are just around the corner, and consumer spending is on the rise. Experts report e-commerce sales reached $910 million last holiday season—10% up year over year. More e-commerce spending means more orders for your business. But, the news isn’t all great. There were also widespread shipping delays due to COVID-19 outbreaks and supplier shortages last year.
Avoiding delays in your logistics operation can be the key to maximizing profits and finishing the year in stride. But to do so, you need to prepare, streamline processes, make informed decisions, and stay flexible. Logistics optimization software can help you do this and more in five key ways.
How can freight management software help with high demand?
Logistics optimization software automates your logistics operations from dispatch to delivery. By leveraging AI and machine learning, advanced logistics management systems streamline your workflows and help you take control of your supply chain. Below are five ways freight management software can help you navigate peak season shipping.
1. Prepare for increased demand with simulation modeling
With high shipping volumes incoming, you’ll want to be as prepared as possible. Simulation modeling allows you to take the guesswork out of scaling for the season. Logistics optimization software with this feature will enable you to accurately formulate plans for package distribution, driver workflows, distance traveled, and fuel consumption.
Simulation modeling modules can estimate your future delivery output by allowing you to adjust inputs, such as expected orders, driver capacity, geography, and time-frames.
With this invaluable tool, you can reduce your risk and create operational efficiency by running various “what if” scenarios for your fleet. For example, you can estimate changes to delivery times if your total orders increase by 10%.
2. Automate your package distribution with AI-based route allocation
The peak shipping seasons can get hectic, but a sound package distribution system can reduce hold-ups at distribution centers. Logistics optimization software with AI-based route allocation automates your agent’s package assignments according to variables such as skill, time, and destination.
A good route allocation system helps create more cost-efficient and balanced routes by distributing the optimal number of orders to each vehicle and driver. A great system will dynamically adjust plans based on new information, such as a driver calling the day off or a canceled order—allowing you to rest assured that your package distribution is fully optimized.
3. Streamline dispatch management with real-time route optimization
Well-organized dispatch management is essential to minimizing peak season delays. Real-time route optimization lets you keep an eye on traffic patterns and formulate routes accordingly. This feature, in turn, generates highly accurate ETAs that will help you predict arrival times and easily coordinate deliveries.
With logistics optimization software, you can gain unlimited data from your fleet, such as historical delivery timelines, and make informed decisions about scheduling and order priority—all without adding additional work for your team.
4. Stay flexible with intelligent driver repositioning
Staying flexible to changing conditions can make or break your peak shipping season. Using intelligent driver repositioning algorithms can minimize driver downtime and maximize your profits.
If there is an increase in orders at a particular hub and insufficient drivers nearby, logistics management software will recognize this problem. Then, it will automatically reroute idle drivers to delivery hub hot zones to balance workloads.
Driver repositioning algorithms can utilize traffic data and information collected from your fleet to predict where you will need your drivers most. That way, you waste less time managing your drivers and can be prepared for whatever the season throws at you.
5. Make informed decisions with advanced reporting and analytics
Information is key to making the right decisions at the right time. But with access to unlimited data, information overload can leave you with more questions than answers. Logistics optimization software with a customizable analytic dashboard lets you utilize customer and driver data and gain insights into the metrics that matter most, like the number of delays and customer satisfaction ratings.
Take on the peak shipping season with FleetRunnr
Don’t let seasonal high demand slow you down. FleetRunnr is the logistics management software that allows you to manage your whole fleet and maximize your order capacity effortlessly.
Experience an enterprise-grade solution at a small- and medium-sized business price point. Request a demo today, and see how FleetRunnr can transform the way you run your logistics operations.