Rating Carriers Based on Delivery Performance 

by LJM Group

On the heels of the pandemic and as we close 2021, it may be wise to reflect on the changes we’ve witnessed and the lessons we’ve learned. Evaluating our findings provides an opportunity to put new tactics into place. When choosing a Parcel Carrier, it may be helpful to consider rating the points below to help select one based on your shipping profile and a Carrier’s performance. One area of critical focus that distinguishes Carriers from each other is their transportation and last-mile delivery strategy. Almost 61% of logistics companies have revealed that this part of the delivery chain is usually the most ineffective process.1

There’s no one-size-fits-all shipping Carrier — which is why you need to weigh your business wants, needs, and costs and see which fits those needs. Whether you choose a single or multi-carrier strategy, looking at a Carriers’ ability to leverage transportation to improve fulfillment capabilities should be factored into a decision. Here are some trends that you should review and consider when evaluating Carriers in 2022:

Smart Tracking 

Real-time tracking provides enhanced visibility and route optimization to improve the delivery process and guarantee delivery times. Carriers leverage GPS tracking systems to monitor a driver’s performance to increase efficiency and driver accountability. It can help you enhance productivity by up to 20% and reduce fuel costs by almost 15%.

Drones and Delivery Bots

Drone deliveries provide an alternative to the human role and the interaction with a possibly infected delivery driver transporting essential items. With UPS, FedEx, and Amazon all focusing on emerging technologies to address the demand for same-day delivery, these new solutions will help businesses adapt to life after the pandemic.

Local Warehouses

It is estimated that same-day deliveries will reach a combined share of 20%-25% of the entire last-mile delivery market by 2025.2 To fulfill same-day delivery needs, warehouses are being built in metropolitan cities for the immediate delivery of products. Geography counts!

Data Analytics

Data is being used for predictive analytics to optimize the delivery process. It is especially useful for delivery including rerouting, planning, and even inventory management. It can help you make well-informed decisions and significantly boost your revenue.

Environmental Strategy

Carriers are going to great lengths to reduce their carbon emissions. They are looking for ways to work in a more environment-friendly manner. For example, UPS has committed to be carbon neutral by 2050 and FedEx set an ambitious goal of 2040.

Depending on your shipping volume and the types of goods you ship, it can be challenging to know which service you should use. And, with more frequent and higher than usual Carrier rate increases (FedEx 2022 rate increase) (UPS 2022 rate increase) combined with rising customer expectations, shippers need innovative solutions to gain a competitive edge. Understanding the many variances that come into play, LJM offers the necessary tools to assist in achieving a shipping strategy that’s customized to meet your business needs.

  1. Accenture, How Could Last-Mile Delivery Evolve to Sustainably Meet Customer Expectations?
  2. McKinsey & Company, How Customer Demands are Reshaping Last-Mile Delivery
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