Case Studies

How to increase operational efficiencies in E-commerce

With E-commerce becoming more complex, thanks to increasing customer demands, it is imperative to increase operational efficiencies across all miles. Right from sorting in the warehouse to the last-mile delivery, increasing efficiency at each level ultimately leads to better customer satisfaction.

What makes increasing operational efficiencies a tough challenge?

Human dependency: Right from sorting packages, delivery route planning to the actual delivery, E-commerce firms are heavily dependent on humans to get things done. This is usually tedious and error-prone. One small error can have a cascading effect, finally leading to a bad customer experience. A lot of dependence on humans also means rising operational costs.
Lack of visibility in the supply chain: There is usually very minimal to no visibility in the movement of riders/vehicles in pick-up and return. This leads to inefficiency and loss of time, thereby not meeting promised SLAs. Manual route planning does not take real-time events like traffic, roadblocks, rest stops, etc, into consideration.
Lack of tracking and insights: Since a lot of the operations and planning are manual, decisions are taken on gut feeling or some rudimentary data tracking. With better data comes better insights and ultimately smoother operations.
Lack of digitized proof of delivery: A great last-mile delivery should ideally be a thing of joy for customers. It is expected to be smooth, instead customers are signing papers and delivery boys are searching for customer names and matching them with the delivered products.

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Achieving flawless accuracy in sorting deliveries

A top fashion E-tailer in India had minimal to no visibility in the movement of riders/vehicles in pick-up and return. This led to inefficiency and loss of time. Also, the firm was using traditional sorting methods, which is heavily dependent on human intelligence, for their package segregation. This resulted in an increase in error rate with higher processing time and human resource cost. All of these together led to a compromise on the agreed service levels with the end customers.

Locus reduced more than 60% of the firm’s sorting time at each delivery center, resulting in saving man-hours. These resources can now be used for more deliveries or to tackle more package sortation during peak seasons. Locus’ geocoding capabilities helped maintain over 99% address accuracy in sorting shipments. All this led to an improvement in capacity planning and understanding the zones that had a huge demand.

Solutions Offered

Locus IntelliSort: A comprehensive solution that maintains a high level of accuracy in the sorting process while significantly reducing the time taken. The completely automated parcel sorting process reduces human dependency.
Geocoding: The solution ensures that addresses are mapped against the corresponding route number, irrespective of the quality of address, thereby leaving no room for error.
Delivery Route Planning and Printing: Every shipment is automatically assigned to the most optimal delivery route and the rider best suited for it. The Routes provided by IntelliSort can be printed on the shipping label to eliminate manual dependence.

Business Sector

E-commerce

Performance Improved

99% address accuracy in sorting deliveries

>60% Reduction in sorting time

Man-hours saved by eliminating high human dependence

99% Address accuracy in sorting deliveries via our Geocoder

How Locus can help companies in the E-commerce space

Accurate address detection and Geocoding to automate sorting
Provide a control tower application that will help manage operational exceptions and predictive alerts like delays, idle time, vehicle breakdowns, etc so as to ensure a great customer experience
Intelligent clubbing of orders, based on factors such as location, delivery time slots, order specifications, priority orders
Coming up with the most optimal fleet mix and route plan for the vehicles. This is done while considering both business as well as local constraints such as traffic, route restrictions, etc.
Digitization of the process by enabling Electronic proof of delivery (EPOD).
Reducing turnaround time for the customer by optimizing locations of warehouses/distributor centers, sorting times at fulfillment centers and last-mile distribution centers
Increasing first attempt delivery rates (FADR)

Locus Helps Businesses Globally Achieve Their Last Mile Goals

Geocoding

Control Tower Application

Intelligent clubbing of Orders

Optimal fleet mix

First Attempt Delivery Rate

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