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5 LAST-MILE DELIVERY CHALLENGES AND HOW TO SOLVE THEM

Last-mile delivery accounts for 53% of shipping costs and is the most inefficient part of the supply chain. As businesses rise to the challenge of delivering to customers’ doorsteps, there are a few hurdles that need to overcome.

We have listed the five last-mile challenges that lead to supply chain disruptions and how Dexter’s logistics can help lessen these challenges.

1) The uncertainty of estimating arrivals in last-mile delivery 

A recent survey found that 56% of consumers say they won’t shop with a retailer following a deficient delivery experience. Customers expect to know where their package is at all times and when it is going to reach them. Delivery delays hurt the brand experience and increase customer churn.

Road and traffic conditions, warehouse congestion, and inaccurate routes can affect a package’s expected time of arrival (ETA). Dexters provides Real-Time tracking of the shipment to reduce cancellations and customer churn.

  1. Inefficient route planning

Route planning is an integral part of last-mile delivery that converts to cost and time savings. Getting it wrong leads to delayed deliveries and higher costs. 71% of last-mile drivers spend between 4 to 10+ minutes trying to find the exact drop-off location. And over 95% of drivers have faced problems with inaccurate mapping, leading to an estimated $2.6 billion increase in costs annually.

At Dexters, we have a robust team of Locals for Last-Mile Delivery and route optimization solutions that can compute efficient routes.

  1. Unpredictability in transit

Even the most thorough last-mile delivery plans can be disrupted by the unpredictability of unloading time, customs delays, highway closures, accidents, adverse weather, and more. When every second counts, a simple flat tire can have a snowballing effect on a tight schedule.

At Dexter’s, we enable easy rerouting and tracking using real-time data. This goes a long way in helping logistics managers identify when an emergency plan needs to be set up.

  1. Rising last-mile delivery costs

Last-mile delivery accounts for more than half of the shipping costs and that number is regularly rising. From escalating fuel prices to fleet management costs, delivery is an expensive business. In addition, losses stemming from failed or delayed deliveries and various delivery attempts to put a strain on the already tight margins.

Logistic managers are turning to enterprise-centric location technology solutions to help keep the costs down and enhance delivery times.

  1. Lack of fleet visibility

Visibility at the final stage of delivery is critical for businesses. To avoid or communicate any deviation in the promised ETA and delivery promise, companies require up-to-date and exact tracking information. But with little to no access to enterprise-grade map data, fleet visibility, and tracking is one of the major pain points.

Dexters Logistics’s last-mile delivery solution can help your business tackle the above challenges efficiently

 

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4 Implications of Rising Fuel Costs to Freight Transportation

Logistics costs are influenced by the underlying price of fuel. Over the past decade, fuel costs have dramatically increased, which has increased the cost of air and road freight. While Dexters logistics, a logistics company in India, goes above and beyond to streamline logistics processes and help customers save money. In this article, we are sharing the factors that influence shipping costs, giving you a better understanding of the market.

  1. Increased Costs to Transport Freight

Fuel is the backbone of the shipping industry, so when fuel prices increase, shipping costs do too. If it costs more for the shipper to transport, it will cost more for the receiver to make up for the difference.

  1. Product Inflation

Besides fluctuating shipping costs, the cost of fuel affects just about every other level of the supply chain. Rising fuel costs have a snowball effect on the economy, politics, environment, and technology industries. If fuel costs increase and shipping costs increase, product costs typically increase because manufacturers need to make more money to cover the cost of shipping and production.

  1. Service Areas

As fuel costs rise, freight forwarders will re-evaluate their service areas to optimize shipping routes. For example, Dexter’s provides air freight and shipping over roads and railways. If fuel costs for shipping road freight have significantly risen, it may be more cost-effective to use rail freight for a particular shipment instead. This has to be balanced against increased transit time and other factors. youtube music premium crack

  1. Usage Level

Rising fuel costs affect many industries and even more companies. When companies face rising costs, they cut back on the frequency of their services. If the price is affecting the usage level, then companies affected will try to save money wherever they can, hence the reduction in services.

The Impact on the Future of the Industry

Over 80 percent of cities in India get all of their goods solely by truck, so while the trucking industry isn’t going anywhere soon, costs could continue to rise. The increasing cost of freight transportation has led some companies to keep more products on hand, which can reduce the amount of necessary transportation. download license key pes 2017 pc

The rising costs of fuel will affect the freight transportation industry in over one way. However, if you prepare yourself ahead of time for things to come, you’ll have fewer headaches down the road.

 

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A CAREER IN LOGISTICS – WHY?

Logistics Industry is coming up, not just for those looking at entry-level career opportunities, but also for the mid-level to senior-level aspirants trying to spot the next best position for them. Yes, the logistics industry in India is expanding at an unprecedented rate to bring forth a plethora of career-shaping prospects for professionals from all walks of life. In this article, we’ll give you a quick rundown of what logisticians do and what you can expect from a career in this crucial field.

WHAT IS THE WORK OF LOGISTICIANS?

Let’s start with the basics. Logisticians are to manage a business’s supply chain—their work falls under the broader shade of supply chain management (SCM). Typical job duties include developing relationships with customers, ensuring all materials are transported on time, knowing customer needs, and diminishing the cost of moving goods and materials. But that’s just scratching the surface—if this sounds like the type of job that would interest you, read on for additional insight.

LOGISTICS MEANS OPPORTUNITY:

According to Forbes. Com, a staggering 1.8 million jobs will require to be filled in logistics by 2023. Because of this, there aren’t enough candidates to fill the positions. This develops an opportunity for all willing to rise to the occasion to join the fast-paced world of logistics.

LOGISTICS MEANS FLEXIBILITY:

From working from home to working in a high rise, positions within the industry have flexibility. The job roles may be very hectic as each day is a unique adventure–but those experiences don’t happen in a quiet cubical.

LOGISTICS MEANS EXPERIENCE:

In very few industries, do you have to change hats as often as you do within third-party logistics? One moment you will speak to a CFO about the impact of transportation pricing on an organization’s bottom line and the next, discuss route optimization with a contracted carrier partner. Having a robust communication skill-set is an essential trait to have. From inside sales to running a board room presentation, roles within the logistics field give the authority and experience to communicate with individuals at any organizational level.

Is it a logistics career for you?

Logistics has many levels and facets. This allows for advancement opportunities to be available. As the industry and organizations within it grow, high mobility within a company is certain. From building out departments to run sales teams, there is shifting and shaping within organizations, leading to more and more evolution.

WAYS TO BREAK INTO LOGISTICS

Update your resume to highlight skills that align with the opportunity. If you’ve already worked in a role (or completed an internship) where you oversaw inventory management or assisted with the operation, then highlight these accomplishments on your resume. As a logistics manager, you’ll be working with procurement, finance, sales, marketing, and other departments to develop and start strategies. So, if you were cross-trained across multiple organizational departments, point that out on your resume.

As you explore your opportunities in logistics, be sure to follow the advice in this blog and if you want to apply for this exciting career, please visit https://dexters.co.in/career/

 

 

 

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The Impact of E-commerce growth on Logistics

The growth of the e-commerce region has given the logistics industry to develop and broaden its activities. E-commerce represents a rising share of the retail market. As per the findings of the report, total e-commerce sales for the Calendar year 2021 is $67-84 billion, up significantly from $52.57 billion attained in 2020, and $40.44 billion in 2019. The e-commerce sector has become stronger like never, ever since the pandemic. Let’s find out further about the impact of e-commerce on the logistics industry.

Enhanced focus on last-mile delivery

The online shopping trends have affected another essential service area of the logistics industry, namely last-mile delivery. Independent freight forwarders are boosting their last-mile delivery to compete with the services like Amazon.

Changing customer expectations

These days, consumers expect deliveries within one or two days if not the same day. The logistics companies are adjusting to the increasing delivery pressures to match customer expectations. This has led to an increasing alternative for single warehouse locations rather than multiple storage facilities. Freight forwarders are also changing their vehicle fleet composition to manage the demands of e-commerce. For example, they are now investing in small trucks and trailers that are more suitable for short and more last-mile deliveries.

Enhanced reverse logistics

Reverse logistics can refer to all post-sale activities that are done to enhance market activity. Online consumers often return and exchange the purchased items for several reasons, which is why the logistics companies are now coming up with helpful reverse logistics solutions in which customers don’t pay for the return.

Focus on visibility

End-to-end visibility of shipments is of utmost importance for seamless e-commerce operations. Most e-commerce retailers update their customers about the shipment status until they delivered it. Therefore, logistics service providers are now investing in a robust data sharing system along with effective fleet management and route optimization technologies.

Adoption of digitization

Using Big Data solutions in logistics has become indispensable in the post-pandemic world, where a vast section of consumers is buying their goods online and these platforms also help to create a better understanding of customer expectations. Handling Big Data is allowing freight forwarders to collect the required data and analyze it in real-time for better customer service. We are also witnessing a rise in using online payment methods via cards, mobiles, and net banking.

Requirement Based Packaging

With packaging, quite a few numbers of choices become available and you have the liberty to select the type of packaging material following your product. This is essential so that the product reaches the customer in an undamaged manner and completes a satisfying shopping experience. Here, the calculation of the shipping cost becomes crucial again and therefore makes sure that it aligns with such other respective factors.

Logistics systems crucial

Storage locations are increasing and spreading out. The ability to know where your items are, how many of them there are, and where they should be for greater efficiency is vital. To access critical data from a variety of locations, in close to real-time is a crucial element in the future of logistics. In a world where consumers desire same-day delivery, technology is essential to bring together all the elements of inventory, storage, packaging, and delivery.

Thus, the mounting popularity of eCommerce is no more a fantasy game; people know it, companies are working hard to survive in the race and the economy is progressing as well. When things roll at a high speed, the only concern remains the rate of survival. ECommerce industry will grow in leaps and bounds and with heavy potential and demand in the coming future too, logistics have to be equally active and emergent about new ideas and strategies.

Having a symbiotic understanding ratio between both logistics and eCommerce suggests that, if one is growing, the prospering chances of the other one automatically increase.

 

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Difference between a Freight Forwarder and 3rd Party Logistics Provider

Shipping your goods to a distinct region is a complicated and time-consuming process as it contains multiple tasks that have to be completed within a specified time frame. It is really confusing to determine how to move your bulk goods from one place to another. To solve these problems, many companies have evolved as service provider to navigate the complex shipment arrangements and they are freight forwarders and 3PLs. Both freight forwarders and 3PL deal with the shipping, but the way of their service is different. They have their own capabilities, costs, and working styles.

Freight Forwarder

A freight forwarder company helps in moving shipment from one place to another by using single or multiple shipping modes and carriers. While shipping from one country to another, there may involve shifting goods from one or more shipping modes, and this makes the process hassle. So, freight forwarders help you in this process by making necessary arrangements. The freight forwarders are not the shipping companies but they are service providers and are liable for setting up all of the shipping services that a customer needs with the carrier. Some freight forwarders provide limited storage of goods with respect to shipping.

Third-Party Logistics Provider

A third-party logistics company is a complete service company that takes care of everything that is involved in the shipping process. The complete care includes the entire supply chain from warehousing to shipments and to logistics, and is solely responsible for the shipment. If any problem arises in the shipping process the third-party logistics service providers decide to tackle the problem and the customer needs not have to worry. All decisions, including carriers, packers, warehouses, or shipping methods, are done by 3PL. The customer has to just concentrate on their business goals and the rest shipping process is carried out by the service providers

It is helpful to use 3PL service providers as they make it easier to get real-time updates and tracking of the shipment since their business is equipped with web and mobile-based application software. 3PL also makes business economical and reliable as they cut unnecessary time and cost

A 3PL offers additional services that are benefitted by the customers whereas freight forwarders are just middlemen or mediators between the customer and the shipping company. 3PL has an additional role like a carrier, keeper of warehoused goods, packer, and biller all in one. They are experts in solving logistics problems and well experienced in implementing solutions.

So choosing between freight forwarder and 3PL depends on the requirement like distance of movement of goods, kinds of goods, and the deadline. Usually, customers are more satisfied with the 3PL service.

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3 Best Practices to Cut Inbound Freight Costs

For every business, inbound freight is an integral component of their supply chain. If companies neglect their inbound freight strategy, the transportation process can become complicated, full of hidden costs, and overspending is a result.

For many companies, different parts of the supply chain are given more consideration than other parts. In fact, in some companies, inbound costs can attain 40 percent of the entire transportation budget.

 

How to reduce inbound freight costs?

Freight management must be controlled in order to reduce costs of incoming shipments. With this in mind, you can identify optimization opportunities and identify gaps that need to be filled. It’s not just about cost-savings when it comes to analysing and improving your inbound freight movement. It enables more visibility into your supply chain and fosters more committed relationship with your vendors.

 

  1. Review your approach

Ask yourself if your vendors meet the compliance program standards, what level of supply chain visibility you have, and how much control you have over inventory movement. Relationships with your vendors are crucial, and the key for these relationships to be successful is communication. Most likely, you’re losing out on many of the benefits of a collaborative partnership because you’re not communicating.

 

To get the most from your inbound shipments, you’ll need to stay up to date on the current state of the economy to determine whether you should put in more or less oversight. This will help you find opportunities to cut down your inbound freight spending.

 

2) Enhance visibility with technology

Supply chain executives can set their own terms and conditions for suppliers and vendors with the help of inbound software. This consists of deciding which parties will enter the shipment information. One option is to have the supplier enter the shipment information so that the logistics team can be notified and book to meet business requirements. The executives could authorize the supplier to work with preferred carriers and suppliers, which results in reduced costs. Either way, it is always at the discretion of the executives to decide the best process based on inbound software insights.

3) Enforce a retail compliance program

In a vendor compliance program, the retailer or consignee and the supplier come to an agreement with stated terms and conditions when moving freight. Vendors must comply with delivery times and other performance requirements outlined by retailers. As a part of this agreement, the consignee also specifies penalties for the supplier’s failure to comply with terms and conditions. The vendor compliance program gives both parties a clear picture of how they work together and has a significant impact on performing inbound shipments.

Inbound freight management with Dexters

In summary, the more transparent your inbound freight is, the better. Dexters can help you reduce your inbound costs with our inbound freight solutions. Consider applying for a free, no-obligation Freight Bill Analysis or Logistics Opportunity Assessment to see how you can save on your logistics strategy!

 

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