IT Outsourcing

How does tracking software reduce the costs of the last-mile delivery process?

15 Dec 20229 min read

Marcin Kulawik

Marcin Kulawik

How does tracking software reduce the costs of the last-mile delivery process?

In the face of the global recession, logistics companies must find a way to keep their financial goals. Introducing new technologies and software solutions opens opportunities for cutting costs. The last mile is the final stage in the delivery process, accounting for 53% of total shipping costs, and it also has the most visible impact on end-customer satisfaction.

So, get a coffee, dive into our thoughts, and experience creating solutions to help businesses thrive and reduce costs.

What are the biggest challenges in the last-mile delivery process?

Why is even the last-mile stage so essential and challenging?

In the era of Covid 19, consumer habits changed. Now, we have switched to buying online, and the opportunity to purchase products online has become a must-have for retailers. When e-commerce grows, the number of orders that need to be delivered rises significantly. If a company has only one location or is far from the shipping destination, it may be necessary to have multiple pick-up points to cover the route.

In addition, it's essential to have a reliable route model - this means knowing which locations are most likely to generate orders and making sure that pickups and deliveries occur at those locations.

By taking these steps, you can optimize your last mile and ensure a successful shipment for your customers.

Getting the product to the right point of sale for maximum profit requires optimizing the entire supply chain. Everything must be in sync to run smoothly from planning to production to delivery.

How can new technology improve the last-mile delivery process?

Tracing applications and data collection is the answer to these challenges! With the increasing use of mobile devices for purpose-built apps and IoT devices, companies need to use better-unstructured data stored on devices and apps.

"In the era of widespread computerization of many aspects of our daily lives, we increasingly use IoT solutions such as trackers in the broadest sense.

These solutions help optimize processes, provide greater security and make our daily activities easier, so we can increase the efficiency and productivity of both ourselves and the product/business we are working on." Jakub Rejman, ReactNative Developer in SolveQ

Modern companies often use advanced technologies to help businesses work smarter and more efficiently. Developments in technology have made it easier than ever to access information and resources, collaborate and coordinate projects.

However, this also creates new challenges for organizations that need to track end-user activity effectively. From a cost perspective, it is an unnecessary financial burden on the company. But are you sure? Because from the standpoint of productivity and cost reduction, however, such an application is a shot in the arm if you want to maximize efficiency and increase profits.

"A company can reap many benefits from having a tracing application, depending on the goal it wants to achieve. From purely managerial to client-to-consumer communication(e.g., delivering food on the phone or packages) to have a powerful marketing tool, which is profiling." Sebastian Kasiński, Senior Frontend & Mobile Developer at SolveQ.

What benefits will the logistic company have from using a tracking app?

Such an app can perform many roles - from pure management (fleet, employees, company assets) to customer-receiver communication (in the case of food delivery or information on where our package is). The app then helps to track items in real-time.

A hidden feature that end users are already a little less fond of is profiling (a powerful tool for marketing, by the way). Based on behavior, e.g., frequency of movement places visited, we can map the user's location against the location stored in maps. The collected information will then help to reach the end user with the right message, i.e., hitting their tastes.

That is, from a simple thing - where you are, eventually we are able to go to a level where collecting all this information, aggregating it and mapping it appropriately gives us the answer that, for example, you like to eat at McDonald's often so we will send you coupons.

Tracking software as a solution to last-mile challenges

One of the most crucial challenges of last-mile delivery for logistics companies are reducing costs. As mentioned before, technology can help overcome some challenges, especially tracking software. At SolveQ, we designed and built several tracking solutions which allowed our customers to stand out from the competition.

We asked our tech experts about challenges and solutions.

Tracking solution for Norwegian unicorn company

What was the customer's problem and how was it solved?

For people who own a pet, its safety and health are the most important thing for us. Norwegian company Telenor was perfectly aware of this and decided to cooperate with us to create a product that helps us increase safety and take care of our dogs' activity (and thus also health).

The answer to this problem became a dog tracker and a dedicated mobile application for iOS and Android platforms, the combination of these two solutions made it possible to create a product through which users can:

  • Find their dog if it escapes
  • Set an area on the map ( Geofence ), and then be notified the moment the dog crosses the boundary of the area
  • Record walks, compare statistics and share them with their friends'

Thanks to our solution, thousands of people can ensure their pets' safety, monitoring and healthy living.

What was the biggest challenge?

“The biggest challenge of this project was adapting our capabilities to our customer's expectations. We had to anticipate many scenarios (including bad ones), so the product was pleasant and effective.

We had to predict which solutions would work best when a dog has just gone missing and we need to find it as soon as possible. In a situation where every minute counts, we must ensure that our solution is entirely usable. If a dog owner finds himself in such a situation, he will know what steps to take without hesitation.

When walking our dogs, we often go to areas with significantly limited network coverage, so we had to create a system that would work regardless of network and Internet availability.” Jakub Rejman, React Native Developer at SolveQ

Route tracking application for a leading bicycle company

Kross is a leading two-wheeled vehicle manufacturer in Europe and the biggest bicycle maker in Poland, with over 30 years of company history. Its products are exported to 35 countries worldwide. The aim was to build a smart application that would connect with bicycles wirelessly and enable route tracking, riding parameters, maintenance monitoring, social sharing and other features.

What was the challenge you needed to face in the project for Kross and how did you solve it?

“We created a mobile app that connects to the bicycle NFC stickers and transmits the information to the user's phone. The app enables route tracking, riding parameters, maintenance monitoring, and social sharing. The app only collects this information when the user uses the application, that is, when it is on (it does not have to be actively used).” Sebastian Kasiński, Senior Frontend & Mobile Developer at SolveQ.

Wrapping up

Introducing tracking software will significantly reduce costs and improve the effectiveness of the last-mile delivery process.

Many logistics companies will look for custom solutions, but not every software development company can create tracking applications from scratch.

At SolveQ we offer a battle-tested process to ensure your product will be delivered and successfully launched. Check our portfolio and get in touch with our tech and business experts.

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Marcin Kulawik

Marcin Kulawik

Founder and CEO of SolveQ. Huge fan of building things with purpose, agility, and having fun while changing the World. Loves his family, teammates, and nature.