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How On-demand Delivery Apps Benefit Logistics Companies?

Over the years, logistics providers have evolved from brick-and-mortar and rolling stock operations to advanced technology providers and automated transportation and logistics solutions through on-demand apps.

The logistics in commerce have transformed entirely due to the adoption of technology. What was once restricted to courier delivery services is now taking a leap to another level, with drone delivery, local drop points, and real-time tracking no longer figments of the imagination.

These developments are largely fueled by technological advancements, shifting customer expectations, and the massive magnitude of online shopping. As we are already into 2024, Statista forecasts that global online sales will rise to $6.91 trillion by the end of this year.

Understanding the On-Demand Delivery App Landscape

In any industry, on-demand delivery refers to delivering goods and services as and when demand arises. To simplify, on-demand delivery is the process where retailers, restaurants, manufacturers, grocery stores, etc., are able to deliver orders quickly and with no advanced notice.

These deliveries are possible with the help of on-demand delivery apps where the users request something, and the thing is delivered to the user within a set frame of time, say 10 minutes or 20 minutes. These apps became particularly popular due to the shift in consumer mindset and expansion of eCommerce after COVID-19.

How Does On-Demand Delivery Work?

Imagine a scenario where a consumer decides to purchase the latest iPhone using a mobile application. This quick purchase aims to surprise a friend with a birthday gift the next day. Hence, the delivery is urgent. Once the order is placed, the mobile application instantly alerts the warehouse where the iPhone is stored.

Upon receiving the notification, the warehouse swiftly identifies the item and initiates the shipping process. Simultaneously, a driver is promptly assigned to ensure the expedited delivery of the iPhone. The driver collects orders from a designated hub and embarks on the last-mile delivery journey.

As the journey unfolds, the driver navigates efficiently, optimizing the delivery route to ensure timely arrival. The result is the delighted consumer receiving the birthday gift in less than 24 hours—a seamless example of a typical on-demand delivery. However, it’s crucial to recognize that this scenario is a simplified illustration.

Why the Logistics Industry Needs On-Demand Mobile Apps:

Efficiency and real-time data processing is what make the logistics sector thrive, as they both streamline and bind the industry. An on-demand app emerges as a strategic solution to streamline supply chain management and fill in the gap between changing market dynamics, increasing customer demand, and industrial supply. Processing tons of real-time data and outlining meaningful insights through these apps helps in industry decision-making. On-demand apps in the logistics industry help companies overcome their operational challenges and achieve excellence by keeping a tap on every freight movement within the supply chain in real time. Uber Freight, a logistics mobile app that experienced substantial growth, is a potential example of one such on-demand mobile application.

Famous On-Demand Apps in the Logistic Industry

On-demand deliveries are becoming increasingly complex yet faster due to the market’s ever-changing dynamics. The complexities of modern logistics require sophisticated solutions to navigate the intricacies and deliver efficient and reliable on-demand services. There are many key players who have already cracked the equation and fits well into the industry’s ever-changing dynamics. Here are some of the famous apps in the logistics industry.

  • FedX

The global delivery services company FedX has well adopted to the digital transformation in the logistics. They have expanded the supply chain to accommodate the rising demand for deliveries due to the eCommerce industry boom.

  • Uber Freight:

Uber freight leverages Uber’s model for logistics by connecting shippers with truck drivers, allowing for efficient, on-demand transportation of goods.

  • DoorDash Drive:

DoorDash, a popular food delivery service app, has expanded into logistics with DoorDash Drive. This service allows businesses to use DoorDash’s extensive fleet for delivery.

  • Postmates Fleet:

Postmates Fleet is an on-demand logistics delivery app that enables businesses to use Postmates’ network of couriers for on-demand delivery. It caters to various industries, including retail, groceries, and more.

  • Shipt:

Shipt is a popular US convenience store Target’s acquired logistics and delivery app. Shipt allows users to place orders from their favorite local stores and have them delivered by Shipt shoppers.

  • CargoFlow Connect: 

CargoFlow Connect is an all-in-one logistics app that emphasizes connectivity and efficiency in the supply chain. It enables large enterprises to manage deliveries with precision.

How On-demand Delivery Apps Benefit Logistics Companies?

For the logistics sector, on-demand delivery apps pose as emerging tools for companies seeking efficiency, flexibility, and customer satisfaction. Here are all the potential advantages that logistic industry at large can leverage through on-demand delivery apps.

Streamlined Operations:

On-demand logistics apps streamline logistics operations as they enable real-time tracking and solve the complex industry-wide problem of real-time preview of goods and services. These apps allow both consumers and business leaders to monitor vehicles and fleets in real time. This functionality not only assures consumers of timely deliveries but also provides companies with insights to optimize processes and seize better opportunities in the market. Here are the potential use cases of Streamlined operations through on-demand logistics delivery apps.

  • Real-Time Tracking:

Enhanced visibility into the entire delivery process.

Improved monitoring of fleet movements and delivery status.

Enables proactive problem-solving and customer communication.

  • Route Optimization:

Reduces delivery times and fuel costs.

Minimizes the environmental impact with optimized routes.

Enhances overall efficiency in the last-mile delivery process.

  •  Automated Task Assignment:

Efficient allocation of tasks to drivers based on proximity and capacity.

Reduces manual intervention and human errors.

Ensures a more organized and resource-efficient operation.

Minimum Paperwork:

Developing on-demand mobile applications for logistics simplifies the data storage for companies. Unlike any other industry, logistics data is collected from a vast set of sources, freight, fleet, transportation, ports, and many other medium. The challenge is that all the data and metrics should be in sync with each other, and paperwork for the same creates chaos. On-demand apps solve this problem by capturing the metrics and every other crucial information about products, drivers, vehicles, and associated entities in real-time on a single platform. This shift toward digitization reduces the need for manual processes and paperwork, saving time and effort while creating a streamlined and profitable ecosystem.

Ease of Warehouse Management:

On-demand logistics applications have simplified warehouse management by providing detailed information about product locations, warehouse statuses, and more with a single tap. This effortless process has streamlined warehouse operations, making it a time-saving endeavor for logistics and courier service providers.

Smoother Supply Chain Management:

The supply chain is the most crucial part of the logistics chain that binds the warehouse, ecommerce process, and inventory with the demand and supply. With automated inventory updates and seamless integration with warehouse management systems, on-demand apps empower businesses to maintain precise control over their inventory, preventing stockouts and excesses. The interfaces of these on-demand delivery apps make monitoring and managing supply chains easy, putting the power of control in the hands of businesses.

Beyond managing warehouses and making courier deliveries, on-demand logistics applications have revolutionized the entire supply chain process by facilitating the tracking of goods, checking for fraud cases, enabling effective team communication, and more, contributing to a more efficient supply chain management process.

Effective Fleet Management:

On-demand mobility solutions have transformed fleet management, making it easier for logistics and parcel delivery companies to track each vehicle’s routes, deliveries, license expiry dates, and more. This efficiency leads to better overall fleet management. With better fleet management, companies can significantly achieve cost optimization. Through data-driven insights and analytics provided by the apps in real-time, organizations can identify areas for improvement, leading to better fuel efficiency, reduced downtime, and overall cost savings.

Better Inventory Management:

On-demand logistics mobile applications have streamlined the inventory management process. These apps have made inventory management more seamless and efficient, from checking product availability in warehouses to detecting discrepancies and malfunctions. Most on-demand apps are developed with automated order processing capabilities. This ensures that inventory levels are automatically updated as orders are placed, fulfilled, and delivered, minimizing manual errors. Due to the tech adoption by on-demand app development service providers, these apps come incorporated with barcode scanning and RFID technology within the delivery app. This enables quick and accurate tracking of inventory items, reducing the likelihood of errors and ensuring precise inventory counts.

Report Analysis:

Logistics businesses can leverage mobile apps to access real-time data on shipment status, vehicle location, and customer orders. This data is a foundation for generating insightful reports, allowing companies to analyze and resolve problems quickly. What these apps do for this huge data is utilize AI-driven analytics for precise, real-time decision-making and figuring out meaning patterns for the future logistics journey. Automation of the reporting process in these apps provides logistics companies with automated dashboards, real-time alerts, and predictive analytics. Automation in reporting processes, with daily, weekly, and monthly reports on key metrics, empowers logistics companies to optimize time and resources effectively.

Improved User Experience:

The on-demand app, if created with simple navigation and an appealing interface, can improve the user experience at large. As the user must be able to access all vital on-demand app features like cost calculation, delivery location, same-day delivery, and delivery partner contact, these apps will help fulfill user expectations in a convenient manner.

Here are all the use cases of improved user experience through on-demand delivery apps for logistics.

Real-Time Updates:

Instant notifications about order status and estimated delivery times.

Keeps customers informed and engaged throughout the delivery process.

Builds trust and loyalty by exceeding customer expectations.

Convenience and Flexibility:

  • Allows customers to schedule deliveries at their convenience.
  • Options for same-day or next-day deliveries enhance flexibility.
  • Catering to the modern consumer’s demand for instant gratification.

Personalized Services:

  • Data-driven insights enable personalized recommendations.
  • Tailors services based on customer preferences and behaviors.
  • Creates a unique and memorable experience for the end-user.

The Future of On-demand Apps for Logistics

In the past 24 months, amidst Covid-19 and people adopting the new normal, if there’s anything that has seen a massive ride, it’s the ecommerce and logistics market. While customer expectations and trust among ecommerce platforms are upending, companies are opting for centralized distribution centers to speed up delivery and address scalability issues- to retain their customer’s trust. The focus has shifted to customer satisfaction. Companies are now leveraging technologies to go the extra mile, such as implementing virtual assistants to deliver a frictionless customer experience or intelligent solutions such as bots and drones to facilitate ‘same-day delivery.’

How to Build an On-Demand App for Logistics Companies?

Building a mobile app that scales with the business, it’s important to hire a trusted on demand app development company that co-innovates with you. A reliable tech partner can even consult you throughout the process about what features your customers would like to see in the beta version of your application. Additionally, follow these steps to develop a high-performing on-demand app for logistics companies.

Step 1- Research the market trends, target audience requirements, and competitors.

Step 2- Make an overall budget and find app developers.

Step 3- Hire a trusted on-demand delivery app development company.

Step 4- Discuss the project requirements and initiate development.

Step 5- Develop the app and launch it.

All these steps of on demand app development have their own winning strategies. The stages can vary depending on the project requirements. However, this basic breakdown will help you develop successful MVP of an on demand app that caters to the ever changing dynamics of the logistics industry.

Ana Hoffman
Anna Hoffman is a part-time blogger who writes on Business, Technology, Digital Marketing, Real Estate, Lifestyle, and Educational topics.
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