maximize cubic capacity, improve vehicle utilization, and avoid unnecessary transportation costs.
way but have little context about what is actually being delivered will not be entirely happy. Andrew Leone, CEO and co-founder of last-mile delivery platform Dispatch, sees a great deal of opportunity in extending visibility beyond the shipment itself to the actual products inside the box. “Often, I buy something online and get notifications from a carrier that my order is on the way. Then I wonder, ‘Great, what’s on the way?’” Leone says. “It’s a fragmented experience.” Passing SKU data on through the shipper directly to the buyer creates a better experience, he says. Customers can validate what’s arriving, verify nothing is missing, and often answer their own questions without having to contact customer service. 5. RIGHT-SIZE EVERY SHIPMENT Packaging decisions directly impact transportation costs. It’s helpful if an ecommerce brand has an information management system (IMS) capable of imparting information such as SKUs, dimensions, and weights to last-mile providers either directly or through their carrier, assuming the carrier has the technology to ingest such data and pass it along. “We use that information to figure out cubic space on trucks and to optimize vehicles,” says Leone. The stakes are significant because carriers and last-mile providers charge based on dimensional weight or DIM weight, a pricing technique that calculates shipping costs based on the amount of space a package occupies, rather than just how much it weighs. A large box filled with lightweight products may be billed as weighing far more simply because it occupies valuable space in a truck, Kemper explains. For temperature-sensitive shipments, packaging becomes even more complex, with refrigerants, liners, and box sizes all influencing both cost and performance. Right-sizing packaging should be a priority. By reducing empty space, selecting appropriate materials, and
This strategy is gaining traction as regional carriers expand their reach and capabilities. “The closer you can store your inventory to the end user, the better,” says G10’s Becker. By distributing inventory across a network of warehouses in key geographic regions, brands can shorten transit distances, reduce shipping costs, and improve delivery consistency. The challenge, however, is finding the right balance. While proximity can be a powerful advantage, it requires careful inventory planning and visibility to ensure the right products are stocked in the right locations. When executed effectively, a local-to-local fulfillment strategy can deliver the speed consumers want without the costs associated with premium shipping. 4. PROACTIVELY COMMUNICATE Prioritizing delivery certainty over delivery speed requires keeping customers informed. Providing real-time tracking, delivery notifications, exception alerts, and status updates helps minimize failed delivery attempts and cuts down on dreaded WISMO (where is my order?) inquiries. “The more informed consumers are , the less likely they are to complain,” says Coiro. Bits and pieces of information aren’t enough. Customers who receive a carrier notification that a package is on the
Many ecommerce brands are developing transportation strategies that prioritize predictability, transparency, and cost control over simply sending packages as quickly as possible. Right-sized shipments are also key.
6. EMBRACE A DATA-DRIVEN APPROACH
The best transportation decisions start with data. Yet many companies fail to regularly analyze information already at their fingertips. “The data is out there,” says Becker. “Companies should understand what zones they’re shipping into and what their average lead times are.” In fact, some of the most valuable information waiting to be mined involves delivery speed, as in what’s acceptable to customers and what’s not. “Smart shippers approach their SKUs in a segmented way,” says Coiro. “They align the delivery speeds that are available to them based on the product and the choice of the consumer.” By understanding the data intricacies of their products and the accompanying service-level requirements, brands can tailor their delivery promises and educate customers accordingly. Ultimately, this results in a more transparent delivery experience, fewer surprises, and a higher customer satisfaction score.
By extending visibility down to the products inside the box, Dispatch helps create a strong customer experience for last-mile delivery.
providing carriers with accurate dimensional data, companies can
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