4 advantages of Click and Collect in logistics operations

vehículo de transporte furgoneta de reparto dibujos animados. Ventajas del Click and Collect

The importance of implementing sustainability in supply chain processes is often discussed from the point of view of the logistics and transportation industry. In this case, in terms of sustainability, users demand both commitment and convenience in the delivery of their orders. However, these desires are not compatible with a genuine commitment to the environment, at least not with the technology currently employed.

One of the rising trends in the retail sector is Click & Collect, an option that has gained prominence in recent years and offers several advantages for both the store and the consumer, including reducing carbon emissions.

If you want to know the advantages of Click and Collect in logistics operations, take a look!

Accorciare l'ultimo miglio

The last mile often has a number of challenges that have arisen in recent times, which are difficult to circumvent and employ good capillarity in delivery. For example, restrictions on the entry of large vehicles into urban centers and difficult access to certain addresses with very narrow streets along with the common challenge of facing the usual traffic congestion of large cities.

With Click & Collect , the final destination is shortened, being its ultimate transport objective that it arrives at the establishment meeting the established objectives. However, it still depends on the location of the premises, which will be easier if it is located in a shopping center on the outskirts with a good platform for unloading goods or just as difficult if it is in a pedestrian area in the heart of the city. Nevertheless, it is still a very economical option for both the logistics operator and the company.

Avoid missed deliveries

One of the biggest inconveniences faced by deliveries to the end customer is that they are not completed successfully. Among its main causes are the absence of the end customer at the home or office, generating more inconvenience for redelivery, which results in more reverse logistics costs. In addition, not all logistics operators can guarantee that the order will arrive in a very specific time slot requested by the customer.

El Click & Collect gives the guarantee of successful delivery of the package and the freedom to pick it up at the store or post office when the customer is available. This is as long as it does not exceed the order booking period (usually about 15 days) and within the business hours of that establishment. Although time restrictions can be eliminated with the option to store them in automatic lockers accessible 24 hours a day.

Empresaria preparando el envío de paquetes. Ventajas del Click & Collect

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Differences between Push and Pull distribution

Ilustración isométrica de un almacén. diferencias entre distribución push y pull vector

It is known that inventory management is based on the structure and objectives of the company's distribution network according to the sector in which it operates. This is done by deciding on the distribution channels through which to deliver products to customers and seeing which are the most optimal in terms of customer service and cost and resource savings.

To this end, there are two ways to fill inventory in a distribution channel: Push and Pull. Knowing their definitions and their advantages and disadvantages is crucial to choose the right strategy according to the industry you work in and your needs.

If you want to know the differences between Push and Pull distribution, their benefits and drawbacks and for which cases one strategy or the other is intended, read on.

Push Distribution

In a Push distribution system, it is the manufacturer or supplier that decides how many units of product are manufactured and distributed. First, they aggregate all the lower level storage points to historical demand and then perform demand forecasting to determine quantities. Next, replenishment inventory is shipped through the warehouses from the originating supply facilities.

This method makes the first nodes of the supply chain responsible for replenishing the stock, manufacturing the efficient amount of goods to be able to ship them to their distributors and avoid excess inventory.

Push Advantages

One of the advantages of this method is that high inventory levels can be maintained by predicting demand to generate a safe stock level. This is a producer-centric strategy. Therefore, for products that have peaks in demand at specific times of the year or are in high demand throughout the year, such as the food sector, such an approach is effective.

Push Disadvantages

However, one of the most notable drawbacks of Push distribution is that, as this decision is made by the lowest nodes in the supply chain, it is far removed from the actual demand being demanded by current customers. For this reason, it suffers from a notable lack of transparency and visibility into the needs of those customers.

That is why it is difficult to adjust to peaks in demand that are difficult to predict and provide good service, usually causing stock-outs. In addition, it requires good management to maintain a good product flow.

foto-media-hombre-usando-auriculares. diferencias entre distribución Push y Pull foto

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Which route will get you to your customer first?

Tiro medio hombre hablando por teléfono. cómo llegar antes a tu cliente foto

One of the most important and, at the same time, tedious tasks to perform in a company with logistics and transportation is the calculation and planning of routes for a specific day or week. With the increasing number of challenges in the industry such as low-emission zones, high fuel prices and higher demands for satisfactory customer service, it is necessary to re-manage routes to adapt and become more efficient.

Para encontrar la ruta definitiva que hará llegar antes a tus clientes se deben de tener en cuenta varias características de las paradas, vehículos y restricciones, entre otras. Además de mantener una comunicación sólida ante cualquier incidente que pueda ocurrir, ya sea un factor interno o externo.

If you want to know the key factors for optimizing delivery routes and how to reach your customer faster, take a look!

Distances between delivery points

Entre los principales factores que se piensan primero cuando se habla de optimizar rutas de reparto son las distancias entre el centro logístico y los puntos de entrega. Además de que es más sencillo calcular una ruta concreta en cuanto echamos un vistazo a la proximidad entre varios puntos de entrega.

Generally, if other factors and constraints are not taken into account, one of the best routes is the one that starts with the stop closest to the warehouse. And then follows the second stop close to the first, and so on until you have finished with all orders and return to the logistics center.

However, a simple glance at delivery points can hide narrow and difficult to navigate last-mile streets that can significantly delay deliveries. Consequently, this factor is one of the first to be considered when creating a "sketch" route and then assigning drivers, vehicles and other constraints.

Delivery and staffing schedules

It is known that, with a number of batches or individual orders for a specific day, a delivery time zone is agreed with the users when calculating routes. However, these customers are increasingly requesting more precise time zones, according to their needs. Therefore, such orders must be assigned to the carrier with shifts and agreements that are compatible with the assigned time slot.

It should be noted that special attention must be paid to labor restrictions for carriers. For example, drivers are not allowed to work more than 6 hours at a time without a break in a day, so they must rest for a minimum of 30 minutes. If it is a very long route, the appropriate time slot would be assigned in accordance with the regulations and, if necessary, another carrier would be assigned to cover the shift. Not to be forgotten are the hours when loading and unloading is allowed in the cities or at the logistics center receiving the delivery.

Punto de entrega concepto abstracto ilustración vectorial. cómo llegar antes a tu cliente vector

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How to plan the management of light electric vehicles?

Hombre de entrega montando bicicleta con paquete - gestión de vehículos ligeros eléctricos foto

When people often talk about a fleet of vehicles, their most familiar image is usually that of trucks, trailers and even vans, given their relevance in the logistics industry. However, we should not forget the latest protagonists in terms of alternative vehicles to the usual ones: motorcycles and bicycles.

More and more companies have already implemented electric light vehicle management, promoting sustainability and last mile capillarity. However, how can you have control over a fleet of motorcycles and bicycles? Does it differ much from a conventional fleet of trucks and vans?

If you are curious about the following points to keep in mind when controlling a fleet of light vehicles, take a look!

Define a fleet management strategy

Like any logistics fleet, such a fleet requires a good strategy in its respective document in order to be in line with the needs and other business strategies. In particular, if one takes into account objectives such as the sustainability of the activities for which an electric light vehicle management can grant.

It should be noted that a fleet strategy must be connected to the fleet policy, which establishes everything that can be covered by the strategy, both its objectives and the rules to be followed by both the personnel involved and the drivers. Consequently, it is essential that all the organization involved in the fleet participates in the realization of the strategy so that the strategy is defined in a realistic and well realized way.

Automate routine tasks

Fleet management (and, for that matter, electric light vehicle management) is known to have very tedious tasks and optimizing time and cost savings is paramount to improving the efficiency of the process. These include paperwork, MOT, fines, regulatory compliance and supplier cost invoices, and so on.

Therefore, the automation of manual processes is an almost essential step because of the numerous benefits it provides. Among its advantages are reducing the number of unnecessary tasks, going paperless, creating the possibility of analyzing data collected from operations and improving the use of human resources.

Mensajero profesional que entrega el pedido en la ilustración plana de scooter - gestión de vehículos ligeros eléctricos vector

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5 ways to optimize your logistics nodes

ordenación-de-cajas-en-el-centro-logístico-nodos-logísticos

Logistics nodes are known to be a fundamental part of all the processes involved in logistics. They range from factories to last mile distribution centers in charge of receiving, storing and managing the entire distribution of goods.

However, these operations are often not optimized. Therefore, the quality of service to customers deteriorates considerably due to delays, reduced shelf life of perishable products, having a product out of stock for a prolonged period of time, among others.

For ways to get the most out of your logistics infrastructure, take a look at the following points:

Design distribution strategies

The company may already have its own distribution strategies for its own network of logistics nodes. However, given the constant changes that can affect all logistics, it may be necessary to update them according to current demands.

Para ello, recopilar la mayor cantidad de datos posibles es esencial para conocer los siguientes pasos que se tienen que dar. De esta manera, se pueden diseñar estrategias eficientes para cubrir las necesidades de la mercancía y la distribución.

Define management indicators

As it is often mentioned, the performance of an activity cannot be evaluated if we do not have key indicators assigned. In the management of a logistics infrastructure, this is no exception and KPIs must also be assigned in all operations to have their monitoring at hand.

It not only serves to measure the performance of merchandise management. It is also very useful for keeping logistics node costs and customer satisfaction in check, especially in the event of complaints and problems with products.

Perform inspection of the infrastructure

The inspection and maintenance of the infrastructure of the logistics nodes is essential both for the safety of the personnel and for the guarantee of the goods. Otherwise it can cause serious accidents in both situations.

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7 benefits of a TMS that will help your business

Ilustración de vector de concepto abstracto de gestión de cadena de suministro - beneficios del tms

You've probably already heard about why it's so important for your company to implement transportation management software because of all the benefits a TMS provides. Thanks to the growth that the TMS industry has experienced, there are now more affordable options for small and medium sized companies along with that of large enterprises.

However, it may seem complicated to install a TMS and that it will take time to understand its interface and manage it. But the opposite is true: it saves time and money in your logistics operations.

If you want to know in detail the benefits of a TMS, take a look at the following tips:

Unify all data in one place

Imagine a TMS as a control tower that also unifies all types of data on a single platform, from the manufacturer to the last mile. In this way, you can visualize it from a single platform and always keep the information up to date.

Thanks to this unification, managers and staff can make changes easily and with all the updated information. From route adjustments to implementing new processes, this is one of the key benefits of a TMS for your company.

Increases warehouse efficiency

Being up to date on the life cycle of orders throughout the supply chain gives a clear view of future needs and anticipates when inventory needs to be replenished.

Having full control over the loads entering and leaving the warehouse helps to better calculate the amount of stock needed to meet demand without delays and also to avoid stock-outs.

Let's not forget either that all the time saved on more automated tasks can be invested in this very important aspect of the entire logistics process.

Save transportation costs

It is known that one of the most costly activities in the entire logistics process is transportation, due to the fact of handling fuel, distances traveled, personnel, among others. It is estimated that it accounts for more than 50% of the total logistic cost of all companies.

However, one of the benefits of a TMS is that it assists in the planning of all loads so that each trip is worthwhile and no more money is wasted than could be saved. In addition, if we optimize our routes for those loads, we will be able to reduce further costs.

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5 solutions for carriers to make their job easier

Ilustración de concepto abstracto de centro logístico vector gratuito - soluciones para transportistas

One of the most critical moments in logistics is the transport of goods in which we try to operate with the least possible inconveniences to achieve the objectives successfully. Also carriers are a key part of this process with many setbacks, therefore, it is important to find solutions for carriers.

The most common problems drivers encounter are often beyond their control and their main causes are overwork and lack of proper management. If you want to know the keys to help carriers in their delivery and driving management, take note!

Optimize routes

Carriers often work against the clock to get deliveries to loading and unloading centers on time, especially those over long distances. It usually takes a lot of work to organize all the destination points to save time. In addition, both freight managers and carriers have strict work schedules and limits on their vehicles, making organization even more difficult.

Therefore, a route optimizer plays an important role in finding the most efficient route possible taking into account the various constraints and characteristics of the load, the vehicle and the driver himself. That is why it is one of the most useful solutions for carriers.

Communicate in real time

On the road and in cities, many types of mishaps can occur despite a well-defined route and optimized loading. All this work would be in vain if good real-time communication is not maintained.

Thanks to the digitization of the industry, more carrier solutions have been developed that keep staff in touch and can instantly send messages about the status of the delivery. From supply chain delays to traffic restrictions and outages, everyone involved in the process must be informed of any unforeseen events and create strategies to avoid them as much as possible.

Upgrade vehicles

Given the increasing restrictions in cities and on highways regarding the circulation of a certain number and type of vehicles, it is time to consider such solutions for carriers as alternatives that meet the requirements of the environmental label.

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4 Smart City initiatives that drive sustainable mobility

Ilustración vectorial del concepto de mensajero autónomo. movilidad sostenible Smart City

Currently, one of the issues we are most aware of and concerned about is global warming and measures to reduce its impact. Whether it is minimizing carbon emissions, eliminating plastic and opting for renewable energies, and among them is to achieve sustainable mobility.

One of the most important initiatives is to promote smart cities in cities. It consists of managing all the usual things that are taken into account in a city but adding the plus of sustainability.

Here are some examples of how to promote sustainable mobility applied to logistics:

Electric vehicles

Given the increasing traffic restrictions on distribution vehicles in terms of number allowed, length, capacity, vehicle model, level of congestion and other aspects, it is becoming increasingly common for companies to renew their vehicle fleet to pursue an ideal level of sustainable mobility.

Among the most notable changes are electric or hybrid trucks that significantly reduce CO₂ emissions and minimize noise pollution.

Some last mile companies have also opted for more unusual vehicles such as scooters and electric bicycles because of their ability to access difficult urban areas that even a van could not enter, thus considerably reducing the impact of the carbon footprint.

DUM monitoring and optimization

Given the increasing difficulties faced by last-mile distribution (LMP) due to the growth of large cities, the increase in traffic restrictions and the great momentum of e-commerce, solutions to these problems are becoming increasingly complex.

Among the initiatives to reduce these inconveniences, deliveries are made during off-peak hours to avoid congestion.

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Optimizing Delivery Routes: 6 Strategies for Successful Delivery

Last mile distribution

One of the most important and costly processes for companies is optimizing product delivery during the last mile

With an increasingly demanding customer and the constant advancement of technology, a simple mistake in delivery can have serious consequences for the company.

The focus of organizations is now on the end customer. A satisfied customer is a sure value. 

If we want to provide a last-mile service in line with demanding customers, we must consider the following strategies:

  • Implement the use of artificial intelligence. Both AI and machine learning son dos herramientas fundamentales en la gestión de las plataformas de logística. Con ellas la mejora de precisión en el pronóstico de envíos es de hasta un 90%. En temporada alta, ya sea Navidad o fechas señaladas como el Black Friday, las ventas pueden aumentar hasta un 300% y tanto los procesos como los equipos deben agilizarse más que nunca. Gracias a las previsiones inteligentes se puede mejorar la organización de las rutas, la optimización de los vehículos y qué repartidores hay disponibles. Invertir en Inteligencia Artificial merece la pena, ya que también su uso conlleva una reducción de los costes.

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Balancing cost and quality of service in last mile distribution

Cost vs Quality of Service Balance in Distribution

La distribución de última milla tiene un objetivo muy simple: mover bienes desde un almacén o hub hasta su destino final. Pero, de ser tan simple, no serían necesarios ni expertos en logística ni ningún software de optimización. Los factores más relevantes a la hora de planificar la distribución son las restricciones y el entorno, la calidad … Read more

Why delivery companies need fleet optimization algorithms

Seguimiento de rutas de reparto

¿Por qué las empresas de reparto necesitan algoritmos de optimización de flotas? Durante los últimos diez años, el comercio electrónico ha cambiado la forma en que las personas esperan recibir sus compras en línea. Actualmente, cuando un usuario compra un artículo en línea, espera que la entrega sea rápida, fiable y gratuita. De esta manera, … Read more

Beyond Distribution Planning

Más allá del la planificación de tu flota - hedyla

Ya seas un vendedor al por mayor, una empresa logística, o tengas un pequeño negocio que necesita distribución, seguramente te hayas encontrado el problema en la planificación de tu flota, incluyendo: Qué vehículos usar. Los pedidos que entregará cada vehículo. El orden de entrega de los pedidos. La hora de comienzo de las entregas. Aunque … Read more