Almost every retailer has faced some backlash from unsatisfied customers for an untimely or failed delivery. They are well aware that their choice of logistics provider reflects directly on their own reputation. And while logistics companies have had to struggle with labor shortages and fierce price competition (even forcing some to resort to only a single delivery attempt), others have turned to technology to provide an even better service.
“The robotization and automation entering the logistics processes is a fact,” said Waldemar Osmólski, Ph.D., from the Institute of Logistics and Warehousing (ILiM), a state-owned R&D institute with focus on logistics, e-business and standardization. According to Osmólski, the industry is embracing automation and robotics to reduce costs and increase efficiency. “This also applies to mobile solutions in which data is downloaded and transmitted in real time from devices to information systems (e.g. ERP, WMS, TMS),” he stated.
Upgrading warehousing technology, e.g. by introducing portable printers and automated bar-code tagging and parcel registration has almost eradicated the problem of human error, fundamentally improving the speed and accuracy of logistics processes. “As a result, we can eliminate the need to manually enter data into the IT system, streamline the process while increasing control and improving the quality of services,” Osmólski added.
One area that still has room for improvement is the last leg of the delivery process. Traffic jams, changing routes and other unforeseen events all affect operations and efficiency, both on the side of the logistics provider and the client. Some restaurants already provide a countdown clock to when your food is due to arrive at your doorstep. But for parcel delivery, that level of dependability has proven elusive. Currently, the industry standard is the delivery notification system based on historical data. The best most of them can do is offer e.g. a six-hour window when delivery can be expected. But there are those who are trying to do better. At the beginning of January 2019, Raben Group provided its clients with a tool enabling them to track a shipment in real time, aptly dubbed ETA.
“We are not saying that traffic jams or random situations do not happen. We are not miracle workers,” said Marcin Sobczyński, head of marketing at Raben Group. In his opinion though, the company is obliged to provide reliable information so that customers can have better control over their own time.
REAL-TIME TRACKING
The term ETA (estimated time of arrival) means the time when the delivery is expected to reach its destination. Raben Group has developed a system for monitoring shipments based on the ETA parameter. It uses information about the current position of the driver based on the GPS location provided by their mobile device.
“With a GPS position transferred to the Raben Group’s information systems every five minutes, we are able to calculate with a high degree of accuracy the expected time of arrival of the shipment to the recipient. We work with data in real time, and this significantly increases both the accuracy of the calculation and the quality of the final information,” Bartosz Kolasiński, project manager from Raben Group, explained. The system also takes into account all current road conditions, updating the estimated delivery time on an ongoing basis.
Customers can monitor the delivery in real time on the platform myRaben.com. In case of emergencies resulting from road blocks, accidents etc., the system automatically updates the estimated delivery time and sends updates to the platform. The customer can also activate email and text notifications for the current estimated delivery time. “We see that progressively more customers, instead of reaching for the phone and calling customer service, are eager to use IT solutions,” said Sobczyński.
Mobile devices also support the company’s drivers in their daily work. The terminals are used for navigation and communication between the driver and the dispatcher. As a result, the driver is in contact with the company at all times.
The company is rolling out the new solution (developed in cooperation with logistics software providers TIS Gmbh and PTV) in all its 11 European markets. “At the moment, our drivers already use more than 5,000 devices, and the implementation of the next ones is planned in the coming months. We have over 70 percent of shipments covered by ETA. The numbers increase every day,” Sobczyński said.
As we all know, the client is king, and that is even more true when you have to satisfy both the end-customer and the retailer that has entrusted you with their business.