What Is Delivery Management?

Effective delivery management is the backbone of successful ecommerce. This article explains what it is, why it matters, and how to improve it for smoother operations and happier customers.

In today’s competitive world of ecommerce, as we face off against giants like Amazon or Temu, successful customer delivery isn’t simply about getting products from point A to B – it’s an opportunity to provide an unparalleled customer experience and differentiate your business.

In this article, we’ll dive into delivery management: what it is, why it’s so important, and how you can refine your process to boost efficiency and deliver on your promise to customers. Whether you’re just starting a small online shop or a seasoned ecommerce veteran, these tips will help you to up your delivery management game.

What Is Delivery Management?

Delivery management is the process of overseeing the entire journey of an order, from the moment a customer places it to when it arrives at their doorstep. It involves coordinating all the steps in between, like picking, packing, shipping, and tracking, to ensure that each delivery is completed accurately and on time.

In day-to-day operations, delivery management often involves leveraging software solutions to automate tasks like route planning, real-time tracking, and performance monitoring, helping you scale as your business grows.

A strong delivery management strategy will improve customer satisfaction, streamline operations, and help to keep costs under control. It's about making sure that your products reach your customers efficiently, reliably, and exactly as promised.

What Are the Benefits of Delivery Management?

It’s easy to feel overwhelmed by all the logistics concepts already out there, from ‘inventory management’ to ‘order fulfilment’. You’d be forgiven for wanting to avoid yet another ‘big’ idea. But delivery management is particularly valuable because it zeroes in on the customer experience during the final leg of the journey – the ‘last mile’.

It’s the crucial last mile that has the biggest impact on how customers perceive your business. It’s also the most costly part of delivery by far, accounting for over half of the total cost of shipping. In short, it’s something worth managing.

Let’s jump into these benefits to discover why refining your delivery management is worth the investment.

Customer Satisfaction

At the heart of delivery management is the goal of keeping customers happy. When deliveries arrive on time and in perfect condition, it reinforces trust and builds loyalty. A well-managed delivery process ensures that customers get what they expect, when they expect it, leading to positive reviews, repeat business, and a stronger reputation.

Lower Costs

Better delivery management helps cut costs by optimising routes, reducing fuel consumption, and minimising delivery issues, such as failed attempts or returns. Strong delivery management also means better resource allocation, which can lead to significant savings in the long run. Lower costs not only improve your bottom line but also allow you to offer more competitive pricing to your customers.

Faster Deliveries

Good delivery management means fewer delays and quicker turnaround times. By using smart route planning and well-trained drivers, orders reach customers faster. Efficient order processing ensures packages are ready to go as soon as they’re ordered. Real-time tracking helps avoid any hold-ups along the way. All this adds up to quicker deliveries, keeping your customers satisfied and your business ahead of the competition.

Happier Staff

When your delivery management is smooth, your team feels the difference. Clear processes and fewer last-minute issues reduce stress and frustration for everyone involved. Drivers have clear routes and schedules, warehouse staff deal with fewer errors, and customer service handles fewer complaints. This leads to a more positive work environment, where staff can focus on their jobs without constant firefighting. Happier staff are more productive and engaged, which benefits your entire business.

Scalability

As your business grows, so do the demands on your delivery process. Effective delivery management makes it easier to scale by providing a strong foundation. With efficient systems in place, you can handle more orders without sacrificing speed or accuracy. Automated tools and silky smooth processes allow you to expand your delivery network, add new routes, and increase order volumes. It all combines to ensure that your business can grow without the growing pains, keeping everything running smoothly even as demand increases.

Sustainability

Delivery management can also help you to hit sustainability goals by optimising your routes and reducing fuel consumption. Fewer miles travelled and efficient use of resources mean a smaller carbon footprint. It also helps to minimise waste, such as excess packaging or unnecessary trips resulting from failed deliveries. With clear, measurable efforts to improve your eco-friendly credentials, you can better appeal to customers that value sustainable business practices.

What Is a Delivery Management Plan?

A delivery management plan is a structured approach to managing the entire delivery process from start to finish. It involves outlining the steps needed to get products from your warehouse to your customers efficiently and effectively.

Your plan should cover everything from order processing and route planning to real-time tracking and customer communication. By having a clear plan in place, you can ensure that your deliveries are consistent, reliable, and scalable, helping your business run smoothly as it grows.

A well-crafted delivery management plan typically includes several key components:

Order Processing: This involves setting up systems to handle orders as soon as they come in. Whether through automation or manual processes, the goal is to get orders ready for shipment quickly and accurately.
Inventory Management: Keeping track of what’s in stock and where it’s located in your warehouse is crucial. An effective delivery management plan ensures that inventory is managed efficiently, reducing the chances of errors and delays.
Route Planning: Optimising delivery routes is essential for reducing costs and speeding up delivery times. This generally involves using sophisticated route planning software, though you may find other methods to ensure drivers take more efficient paths in simpler contexts.
Real-Time Tracking: Providing real-time updates to your team and customers about the status of deliveries builds trust and reduces inquiries. This involves implementing tracking systems that keep you informed.
Customer Communication: Clear and timely communication with customers about their orders is key to maintaining satisfaction. Your plan should include (ideally automated) strategies for keeping customers informed at every stage of the delivery process.
Performance Metrics: Measuring the success of your delivery operations is essential for ongoing improvement. A strong plan includes setting up key performance indicators (KPIs) to monitor aspects like delivery time, accuracy, and customer satisfaction.

You can see that a good delivery management plan will help focus energy towards that last touchpoint with your customers. It should empower you to evaluate the experience from their point of view and make incremental improvements to keep customers happy.

How Can I Measure Delivery Management Success?

To understand whether your delivery management strategy is working, you’ll need to track specific key performance indicators (KPIs). These metrics provide a clear picture of how well your delivery process is performing and where improvements might be needed.

By regularly monitoring these KPIs, you can ensure your operations are on track, identify any issues early, and make data-driven decisions to enhance efficiency.

Here are some of the most important KPIs and areas to measure the success of your delivery management efforts:

Customer Satisfaction

Customer Satisfaction (CSAT or NPS) is a key metric that directly reflects how well your delivery process meets customer expectations. It’s usually measured through surveys sent after delivery, asking customers to rate their experience.

High scores indicate that your delivery management is working well, resulting in happy customers. On the other hand, lower scores can point to issues like late deliveries or damaged goods. Regularly tracking satisfaction helps you understand customer sentiment and identify areas where your delivery process could improve.

On-Time Delivery Rate

On-Time Delivery Rate measures the percentage of orders delivered to customers within a promised time frame. It’s a vital KPI because it clearly impacts customer satisfaction and trust. A high on-time delivery rate indicates that your delivery management is effective, showing that customers receive their orders when expected. On the other hand, a low rate can signal issues in your processes, such as poor route planning or delays in order processing.

Cost Per Delivery

Cost Per Delivery is a helpful metric that tracks the average cost of delivering each order. The metric includes expenses such as fuel, labour, vehicle maintenance, and packaging. Monitoring this KPI helps you understand the total cost efficiency of your delivery process and identify areas where costs can be reduced.

Delivery Time Per Order

Delivery Time Per Order tracks the average time it takes for an order to reach the customer from the moment it’s placed or dispatched. It’s useful for gauging the speed and efficiency of your delivery process. Shorter delivery times typically lead to higher customer satisfaction, while longer times can indicate bottlenecks or inefficiencies that need addressing.

First-Attempt Delivery Success Rate

First-Attempt Delivery Success Rate measures the percentage of deliveries successfully completed on the first try, without needing a redelivery. This metric is important because each failed delivery attempt increases costs and can lead to customer dissatisfaction. A high success rate indicates efficient delivery processes and effective communication with customers, ensuring they are available to receive their orders.

Order Accuracy Rate

Order Accuracy Rate measures how often orders are fulfilled correctly, including the right products, quantities, and packaging. This metric is critical for maintaining customer satisfaction and reducing the costs associated with returns and replacements. A high order accuracy rate indicates that your picking, packing, and shipping processes are reliable and precise.

Fleet Utilisation Rate

Fleet Utilisation Rate measures how effectively your delivery vehicles are being used compared to their full potential. It looks at how much of your fleet's capacity – whether in miles driven, hours used, or volume transported – is actually used over a given period. A high utilisation rate indicates that your fleet is operating efficiently, making the most of available resources. A low rate suggests underutilisation, which might mean missed opportunities to optimise routes, consolidate shipments, or reduce costs.

Fuel Efficiency

Fuel Efficiency tracks how much fuel your delivery vehicles use relative to the distance they cover or the number of deliveries they complete. This metric helps you understand how effectively your fleet is consuming fuel, which directly impacts your operating costs and environmental footprint.

High fuel efficiency means your vehicles are running optimally, using less fuel to get the job done, which reduces expenses and supports sustainability efforts. Low efficiency, on the other hand, can indicate issues like poor vehicle maintenance or inefficient route planning.

Driver Performance Metrics

Driver Performance Metrics assess how well your delivery drivers are performing in areas like speed, safety, and adherence to routes. Driver performance metrics can include on-time delivery rates, fuel efficiency, compliance with delivery schedules, and more. With the KPIs you care about segmented by driver, you can identify top-performers and those who may need additional training or support.

Return and Redelivery Rate

Return and Redelivery Rate measures the percentage of orders that need to be returned or redelivered due to issues like incorrect addresses, damaged goods, or customer unavailability. It’s useful to track because high rates can indicate inefficiencies in your delivery process, such as poor packaging, inaccurate address information, or insufficient communication with customers.

How Can I Improve Delivery Management?

Ok, so delivery management is clearly useful, but what can you actually do about it? If you're tired of dealing with delivery headaches or just want to take your processes to the next level, there are practical steps to make everything run smoother.

From route optimisation to tighter customer communication, here are some actionable tips to refine your process and keep deliveries on track:

Set Accountability

Accountability is the cornerstone of an effective delivery team. When everyone knows their role and feels responsible for their tasks, operations run more smoothly, and outcomes improve.

Define Roles and Responsibilities: Clearly define each team member’s role to avoid confusion and ensure every task is handled efficiently.
Track Performance Metrics: Implement KPIs to track both individual and team performance, allowing you to spot areas for improvement and reward excellence.
Promote an Ownership Culture: Encourage a culture where team members take ownership of their tasks, promoting pride in their work and better overall results.

Stick to Your Commitments

Reliability is key to building trust with your customers. To maintain this trust, it’s essential to consistently meet your delivery promises.

Promise What You Can Deliver: Align your delivery promises with your actual capabilities to avoid over-promising and under-delivering.
Build in Buffer Time: Include extra time in your delivery schedules to account for unexpected delays, ensuring you can still meet your commitments.
Communicate Transparently: If a delay does occur, proactively inform your customers to manage their expectations and maintain their trust.

Improve Customer Communication

Effective communication is vital for keeping your customers informed and satisfied throughout the delivery process.

Personalise Communication: Tailor your messages to each customer, using their name and specific order details, to make them feel valued and enhance their experience.
Resolve Issues Proactively: Contact customers before they notice a problem, like a potential delay, to manage expectations and preserve trust.
Establish Feedback Loops: Create an easy way for customers to share their delivery experience, and use this feedback to continuously improve your service.

Optimise Route Planning

Efficient route planning is the foundation for reducing delivery times and costs while keeping customers happy. You’ll likely find that high-quality software is the answer here, but there are some general tips that can support better route planning:

Cluster Deliveries by Area: Group deliveries by geographic area to minimise travel time and fuel usage, which is especially effective in dense urban environments.
Incorporate Customer Preferences: Factor in customer preferences, such as preferred delivery windows, to enhance satisfaction and improve delivery success rates.
Adapt to Real-Time Conditions: Utilise real-time data to adjust routes based on current traffic, weather, or road conditions, ensuring timely deliveries despite unforeseen obstacles.

Track Orders in Real-Time

Real-time tracking is essential for both efficient delivery management and providing transparency to your customers. In truth, thanks to the bigger players, it is now the default expectation of most customers.

Use Modern Tracking Tech: Implement real-time tracking solutions to monitor deliveries, ensuring you can manage operations effectively and keep customers informed.
Provide Customer Updates: Use tracking data to give customers accurate delivery times and status updates, enhancing their experience and trust. It can also enable them to respond and prevent errors before they happen.
Resolve Problems Proactively: Use real-time data to spot and address potential issues, like rerouting to avoid traffic, before they impact the delivery.

Audit Processes

Regular auditing is an essential part of maintaining efficiency and staying competitive. Without audits, inefficiencies and errors can go unnoticed, leading to higher costs and lower customer satisfaction.

Conduct Regular Audits: Routine checks help you uncover hidden inefficiencies and keep your operations running smoothly.
Audit the Customer Journey: Walk through the entire process from the customer’s perspective to identify and eliminate pain points.
Benchmark Against Industry Standards: Compare your processes to industry leaders to ensure you’re not falling behind. Have some ambition and try comparing your experience to logistics leaders, like Amazon.
Implement Continuous Improvement Cycles: Make audits a regular part of your strategy, followed by consistent, incremental improvements. This approach keeps your operations proactive rather than reactive, ensuring you’re always improving.

Assess Driver Productivity

Your drivers are the beating heart of your logistics operation. Trying to understand and improve their experience and performance can significantly impact your overall delivery performance.

Track Productivity Metrics: Monitor key metrics like average delivery time per stop, idle time, and customer feedback to evaluate driver efficiency.
Empower Driver Autonomy: Allow drivers the freedom to make decisions on the road, which can boost efficiency and job satisfaction.
Introduce Peer Benchmarking: Implement a system where drivers can compare their performance with peers, fostering healthy competition.
Motivate with Incentive Programs: Reward high-performing drivers with incentives to encourage continuous improvement and maintain high productivity levels.

Train and Support Your Delivery Team

But, be sure to understand that productivity for drivers and the rest of the team starts with you. A well-trained and supported delivery team is the engine of great delivery management.

Implement Ongoing Training Programs: Regularly update your team on best practices, safety protocols, and customer service techniques.
Use Scenario-Based Training: Prepare your team for real-world challenges, like difficult deliveries or customer complaints, through practical, scenario-based exercises.
Foster a Supportive Work Environment: Create an environment where team members feel valued and motivated - an unhappy team cannot be expected to deliver the best results.

Gather Team Feedback

Your team on the ground is also likely to be the best source of fresh ideas. Regular feedback also helps you identify issues early and make work a great place to be.

Schedule Regular Check-Ins: Hold short, frequent check-ins with drivers and other team members to discuss what’s working and where they see potential for improvement.
Provide Anonymous Feedback Channels: Offer anonymous options like suggestion boxes or digital forms to encourage honest feedback without fear of repercussions.
Follow Up with Action: Act on feedback promptly and visibly to show your team that their input directly leads to improvements and changes.

Build for the Future

Even the smoothest logistic operation can fall apart as your business evolves and grows. Plan for the future to ensure that your delivery management stays in alignment with your business goals.

Focus on Forecasting Demand: Use historical data and market trends to predict future demand and prepare accordingly.
Design for Scalability: Build delivery systems that can easily scale, including flexible processes and scalable software.
Embrace Emerging Technologies: Stay ahead by exploring affordable emerging tech, like AI-driven route optimisation or IoT sensors, to gain an edge as your business evolves.

Tired of Delivery Headaches? We've Got the Fix.

Managing deliveries can be frustrating, with delays, errors, and unhappy customers adding stress to your day. When your delivery process falters, your reputation and growth can take a hit.

With Tap'in, you can leave those worries behind. Our expert ecommerce fulfilment service takes the hassle out of delivery management, ensuring that your products reach customers efficiently and on time, every time.

Ready to get back to what you do best? Contact us today and discover how easy it is to streamline your operations with Tap'in.