Today more than ever, the demand for home delivery is skyrocketing, while at the same time the shortage of delivery drivers has become more acute.
Where have All the Drivers Gone?
There are many reasons why there is a shortage of delivery drivers. One could always consider the Great Resignation, which certainly affected transportation and shipping as well as other sectors of the economy with a chronic shortage of workers.
Then there is the sharp increase in demand for home delivery over the past decade, which has resulted in a delivery driver unemployment rate of about 3% which can’t get much lower.
Last but not least, when looking towards the next generation, the sad reality is that the average age of delivery drivers is well over 40, which means when they retire, there is no one to replace them.
Shifting to a Multi-source Driver Paradigm
Companies have reached their internal capacities, and are now seeking innovative ways to engage third-party contractors and independent drivers – whether they’re professional or not.
A great example is the two retail giants that are supplementing their home delivery capabilities through programs such as Amazon’s Delivery Service Partner Program (DSP) and Walmart’s Spark driver program.
What’s clear is that to meet the demand for delivery, a combination of internal fleets, delivery service providers and driver networks must be used to keep packages coming, and customers happy.
Managing Drivers is the Real Challenge
The encouraging news is that while the pool of in-house professional drivers is shrinking, the gig economy consisting of independent contractors and non-professional drivers, is booming.
With the demand for last mile delivery growing at a breakneck speed, there is no choice for retailers but to leverage outsourced and independent drivers. The downside is that tapping into these sources of delivery drivers can result in a management nightmare.
Last Mile Delivery Management Platforms are the Real Solution
In that case, the real solution to the last mile driver delivery dilemma is not the drivers, but the software that can manage them. This requires taking all the information about in-house drivers, independent contractors and delivery service providers and automatically assigning the right deliveries to the right drivers, while optimizing for the lowest costs and fastest delivery times.
At the end of the day, it is a delivery management platform (DMP) that can take all these disparate instruments and orchestrate them into a beautiful symphony of smooth and consistent last mile delivery experiences.
Conclusion
When the future is unpredictable, to stay in the game brands must think two steps (at least) ahead. To keep shoppers both happy and loyal, retailers need a way to maximize deliveries, better handle fluctuations in demand, and reduce operational cost.
This is where Bringg comes in with the most comprehensive, data-driven last mile DMP. Today, a DMP is a must-have when it comes to ensuring a unified shopping journey, alongside a flawless delivery experience.
We are democratizing the last mile to make delivery and fulfillment accessible and scalable to all. And, part of this entails empowering brands to orchestrate their delivery capacity with seamless access to a massive network of independent drivers.
We can enable brands to orchestrate their delivery capacity by:
- Connecting to multiple sources of drivers (own fleet, delivery hub, driver network)
- Measuring cost per delivery, performance and customer satisfaction
- Optimizing resources to drive cost down, and customer loyalty up
Using the latest technologies, we are able to optimize last mile delivery and increase cost efficiencies to the benefit of retailers and their customers.
