The parcel transportation and courier market has become a critical component of the global economy, estimated to represent an astounding $413 billion worldwide. As e-commerce expands and reliance on flexible home delivery grows, the parcel and courier services industry is more important than ever.
Many shippers’ most visible connection to customers is the parcel transportation providers and courier services that provide timely deliveries in an increasingly on-demand world. In this fast-paced environment, service providers need a trusted Transportation Management System (TMS) partner to help them navigate the complexities of delivery.
Parcel Transportation: Navigating a Complex Market
Parcel Transportation Market Dynamics and Challenges
- Efficient routing optimization: Planning the most efficient routes for parcel delivery considers factors such as distance, traffic, and time constraints.
- Visibility and dynamic updates: Ensuring real-time tracking and visibility for parcels and adapting to changes in delivery requirements or conditions.
- Flexibility to meet changing demand: Responding to fluctuations in volume, delivery locations, and customer preferences.
- Avoiding delays and their impact: Minimizing disruptions and delays that lead to customer dissatisfaction and loss of business.
How MercuryGate TMS Addresses Parcel Transportation Challenges
- Delivery slot planning: Facilitate efficient delivery schedules by allocating specific time slots for each order, maximizing route productivity.
- Customer communication: Provide timely and accurate updates to customers about their delivery status and expected arrival times.
- Day-of transportation routing optimization: Optimize routes in real-time based on traffic and weather conditions or the addition of new stops to ensure the fastest and most efficient delivery.
- Pick-up and returns management: Streamline the process of managing pick-ups and returns, reducing the burden on drivers and improving overall operational efficiency.
Parcel Company Case Study Snapshot: Premier Regional Distributor
To meet their unique needs, they turned to MercuryGate TMS for inbound and batch route planning, driver mobile tracking with custom mobile workflows, parcel scanning (on and off vehicle), electronic proof of delivery, and customer service desk support.
Courier Services Enter the Age of Optimization
As consumer expectations continue to rise, courier services must adapt to deliveries with life-impacting implications, like medical devices, vaccines, or even live human tissue. Courier services require constant and dynamic optimization to manage these demands within vehicle, personnel, and time constraints.
Courier Services Market Dynamics and Challenges
- Time-sensitive deliveries and consumer expectations: Meeting the demand for fast, reliable deliveries while keeping up with ever-increasing customer expectations.
- Constantly changing conditions: Adapting to dynamic factors such as traffic, weather, and delivery requirements that can impact courier operations.
- Matching delivery method with package requirements: Ensuring the right vehicle transports every package, considering factors such as size, weight, and sensitivity to environmental conditions.
How MercuryGate TMS Addresses Courier Services Challenges
- Route planning with constraints: Creating efficient routes taking into account factors like time windows, vehicle capacity, and delivery priorities.
- Pick-up assignment support: Streamlining the process of assigning pick-up tasks to drivers based on location and availability.
- Autonomous routing and dispatcher focus: Allowing dispatchers to focus on exception management while the system autonomously handles routing decisions.
- Configurable driver mobile app and third-party solutions: Offering a customizable mobile app for drivers and integration with third-party solutions to enhance operations.
- Support for regionalized or centralized dispatch model: Providing flexibility to adapt the dispatch model to suit specific business needs and preferences.
Courier Services Case Study Snapshot: Large Transportation & Business Services Company
The company manages both pick-up and delivery of time-sensitive items and turned to MercuryGate TMS for:
- Batch route planning.
- On-demand route planning & optimization.
- Dynamic same-day pick-up and delivery assignments.
- Autonomous routing allows dispatchers to handle exceptions.
- Driver mobile tracking with custom mobile workflows.
- Customer service desk support.
The company implemented MercuryGate TMS and planned routes that reduced mileage, vehicles, and carbon footprint. Improvements in on-time ETA calculations enhanced customer satisfaction and reduced inbound customer call volume. Autonomous routing allowed dispatchers to centralize and handle 100+ vehicles, focusing on exception management and optimizing final mile operations.
