Smart routing and capacity solutions could be a way out for you during driver shortage
Drivers are the backbone of any successful last-mile strategy, and that's not just hyperbole. Whether you're a retailer or a courier company, your products and services are only as good as your ability to get them to your customers. Without drivers, you might as well pack up and call it a day. Unfortunately, driver shortages are becoming more common, and they can cause a lot of problems for companies trying to stay ahead of the game.
Trucking Troubles: The Driver Shortage and Its Ripple Effects
According to ATA, driver shortage in the United States is said to reach 160000 in 2030 from current 80,000. Driver scarcity is impacting retail and courier industries by hurting their supply chain operations and ultimately revenue. 71% of all commodities in the USA is moved by the trucking industry, including retail and couriers. So how exactly is the driver drought hurting these industries?
Unable to accommodate orders during peak seasons:
During the holiday season, for example, retailers often find themselves scrambling to find enough drivers to handle the influx of orders. If they can't keep up, they risk losing revenue and disappointing customers.
Delivery and reverse logistics:
Managing delivery and reverse logistics during a driver shortage is a problem of its own. With capacity levels already stretched thin, it can be difficult to keep up with SLAs and manage returns, leading to frustrated customers and lost business.
Shortage in stores:
Due to drive shortages, retail stores face product shortages. This will ultimately affect the consumers and businesses. Business/brands will also have a dip in revenue due less sales.
So, what's the solution? It's no secret that technology has transformed the last mile industry in recent years, and capacity and route optimization solutions are among the most promising options for companies looking to weather the storm of driver scarcity.
Advanced Routing and Capacity Optimization
By implementing a better version of these solutions, with intelligence and automation, companies can ensure that they're making the most of their available resources and keeping customers happy.
Capacity Management
When it comes to capacity management, legacy solutions simply aren't up to the task. They lack the automation and smart order assignment capabilities that are necessary to handle the sheer volume of orders that companies face during peak season. But with cutting-edge technology, companies can take advantage of advanced capacity management solutions that can assign orders to available resources with precision and plan ahead for peak season. These solutions can even handle on-demand orders and assign drivers during time-off, ensuring that every order is fulfilled without waste or loss.
Route Management Solution
When it comes to routing, legacy solutions simply don't match up to the demands of modern dispatch management strategies. Static routing is no longer enough, as urbanization and other real-world variables make dynamic routing a necessity. Legacy solutions simply can't handle the exceptions that companies face on a daily basis, such as traffic, road closures, accidents, and more. And when it comes to reverse logistics, legacy routing solutions often require additional resources to be deployed, making it difficult to manage during a driver shortage.
But automated routing solutions are far more intelligent, and they offer a range of benefits that legacy solutions simply can't match. By taking into account real-world variables like traffic,road closures and more, automated routing solutions can help dispatchers deploy fewer vehicles, which is essential during a driver shortage. These solutions also offer smart routing capabilities that make reverse logistics seamless, without the need for additional resources.
With the help of advanced routing solutions, companies can optimize their last mile operations and ensure that each and every order is delivered on time and with minimal disruption.
In conclusion, the solutions outlined in this article offer promising ways to address the challenges of driver shortages for retailers and courier companies. By investing in cutting-edge capacity management and routing solutions, companies can improve driver satisfaction, reduce costs, and provide better customer experiences. Ultimately, this can lead to higher revenue and a more successful last mile strategy for companies looking to stay ahead of the game.