Everyday logistics require straightforward solutions. However, ongoing staffing shortages, rising fuel costs, and unexpected slow-downs mean that today’s logistics are anything but routine. Logistics providers faced with these challenges are turning to new, tech-enabled supply chain technology and final mile services to deliver on time. Nowhere are these developments in supply chain technology more urgently needed than in last mile delivery, which accounts for more than 53% of the total cost of shipping, according to Insider Intelligence.
One major contributor to last mile delivery costs is the high price of reconsignment. By considering how reconsignment affects last mile delivery, businesses can learn how to implement last mile delivery software to solve their last mile delivery problems.
What Is the Reconsignment Problem?
Reconsignment is changing a shipment’s destination, point of delivery, or consignee from its original Bill of Lading (BOL) while the load is still in transit. These last-minute changes are often due to unforeseeable supply change issues, which pop up in the last mile more often than anywhere else.
In short, the reconsignment problem arises with unexpected, unavoidable last mile delivery expenses. Luckily, final mile services are increasingly utilizing cutting-edge last mile delivery software. These recent advancements in supply chain technology provide businesses with the on-demand visibility they need to predict reconsignment crises before they occur.
Outdated Processes Slow Growth and Put Companies at a Competitive Disadvantage
More often than not, steep reconsignment fees result from poor supply chain visibility. Without real-time visibility, businesses are left to guess at the location of their freight assets, often leaving them scrambling to accommodate inevitable logistical lapses. A lack of real-time visibility also means a lack of real-time communication necessary to ensure a smooth and efficient supply chain that keeps all stakeholders informed.
Without everyone working together with complete visibility, these problems quickly turn reconsignment from a nuisance into a nightmare. Reconsignment costs can quickly keep businesses from investing in the essential things: their customers and their growth. Eventually, these reconsignment costs leave companies playing catch up to their competitors and customers searching for other options.
Last Mile Delivery Improvements Are Possible With Technology Improvements
Lucky for businesses tired of ongoing last mile delivery issues, recent improvements in supply chain technology can provide the visibility solutions needed to avoid costly reconsignment. Features like intelligent allocation, on-demand exceptions assistance, and real-time freight tracking, when paired together in a single easy-to-use API (Automated Programming Interface), enable businesses to keep a careful eye on any freight asset at any point within the logistics process.
Benefits of Optimizing Delivery With Supply Chain Technologies
For businesses considering last mile delivery software, it’s important to consider how the specific features of a final mile services provider could help them serve their customers.
- Faster disruption response time. When supply chain disruptions inevitably occur, businesses must be able to respond as quickly as possible.
- Improved visibility and insights. Data insights can give businesses the tools they need to develop a deeper understanding of their supply chain.
- Optimized customer service. On-call logistics experts provide real-time assistance, meaning businesses can quickly solve real-world logistical crises.
- Real-time scheduling adjustments. Reconsignment doesn’t have to doom a bottom line. With real-time scheduling adjustments, businesses can adapt their capacity without the stress of traditional logistics.
- Predictive planning improvements. With predictive planning, businesses can identify potential logistical crises before they arise, giving them time to make adjustments to survive and thrive in a competitive market.
- More cost-efficient shipping options. With on-demand courier and freight asset services, many final mile service providers offer creative, in-house solutions to help shippers get from A to B.
- Higher profits and lower expenses. With better efficiency comes better cost structures. Businesses that partner with tech-enabled last mile delivery software providers can see the benefits of improved visibility in the service they provide and their bottom line.
Improve Final Mile Delivery and Boost Supply Chain Productivity With the Right Tools and Technology
With reconsignment costs higher than ever, businesses must use every tool available to avoid costly logistical snags. By partnering with OneRail, a final mile services provider specializing in API-enabled last mile delivery software, businesses can gain instant access to the latest logistics tools and technology. Schedule a demo with OneRail today, and see what the future of logistics can do for your business.
