Integration key to driving home delivery innovation

Logistics businesses are now using a host of different IT systems as part of a continued drive to optimise their supply chains. Warehouse management systems (WMS), transport management systems (TMS), routing and scheduling solutions, and telematics tools are all increasingly commonplace, yet despite the growing reliance on technology, much of this infrastructure is still at best only loosely integrated. However, it does look like this is beginning to change.

The potential benefits on offer are many. Retailers and their delivery partners are beginning to take advantage of improved integration to target reduced costs, improved collaboration between different supply chain teams, enhanced stock control, superior customer service and a better understanding of where there is room for improvement.

A good example of where system integration is already working is between routing and scheduling systems and vehicle tracking devices. The ability to access live tracking information allows a delivery operation to plan their routes and schedules and then compare this against what is actually happening on the day. This means that any delivery issues can be seen in real-time and steps can be taken to rectify them or communicate with customers whose deliveries may be delayed.

This added visibility can be further enhanced with the use of handheld electronic proof of delivery (EPOD) devices, which confirm when a delivery has been successful or not, or if a “returns item” has been picked up and is on its way back to the warehouse. With appropriate integration, data can be immediately fed back to complementary systems, such as CRM or WMS, enabling stock levels to be accurately updated and customers to receive automated communications throughout the order lifecycle by text, email or phone call.

The fast-paced home delivery marketplace is one sector where breaking down the silos between supply chain systems is key to improving both efficiency and customer service. Delivery options now strongly influence whether someone decides to place an order with one retailer or another. Added choice – whether Click & Collect, same-day delivery or 1-hour timeslots – is increasingly expected, with little appetite from the consumer to pay large delivery charges for such a service. In order to achieve the desired levels of convenience and flexibility, it is necessary to draw upon information from a range of different business and supply chain systems.

With appropriate integration between systems it is now possible to present accurate and efficient delivery window options at the point of order. However, this does require the customer-facing application to be able to take account of a significant amount of data including stock availability, when the product will be available to despatch, unloading times, number of people required to deliver, size of vehicle required and other planned deliveries in the area on the same day.

Dreams is one such company that has recognised the benefit of bringing together its core technology systems to boost the efficiency of its home delivery service. The UK bed retailer and manufacturer has integrated Paragon HDX with business management solution Microsoft Dynamics NAV and GPS vehicle tracking with the aim of streamlining and optimising its delivery planning and execution processes.

You can read more about how Dreams uses Paragon’s software here. Or alternatively get in touch and one of our experienced team will be happy to discuss your logistics requirements in detail with you.