Orcoda
Orcoda

Digital transformation has revolutionised the way businesses operate, and the transport industry is no exception. In recent years, fleet operators have increasingly turned to digital technologies to improve efficiency, reduce costs, and enhance customer satisfaction. Digital transformation in transport refers to the adoption of advanced technologies such as Intelligent Transport Management Systems (ITMS), telematics, IoT, and AI to automate and optimise operational efficiency for your staff, fleet and route.

Why Should Fleet Operators Embrace Digital Transformation?

The benefits of digital transformation in transport are diverse. According to a recent survey, 9 out of 10 businesses believe they will have to change their business model to stay economically viable by 2023 (Source: Statistica). In the transport industry, digital transformation can help fleet operators stay competitive by:

  1. Improving operational efficiency: Digital technologies enable you to monitor vehicle performance and driver behaviour in real-time, as well as optimising routes, staff rosters and fleet utilisation.
  2. Be a market leader: In a recent survey, 51% of businesses are planning on digitally transforming to differentiate themselves from competitors, and a further 28% said they’re trying to keep up with the industry trends. (Source: Statistica)
  3. Enhancing driver safety: Automated checks that manage fatigue, load limits, pre-start safety checklist and fit for work declaration. These can all help you to monitor driver behaviour, improve safety and reduce accidents. In addition, they ensure compliance and governance processes are in place to protect your board and senior management team from potential prosecution.
  4. Enhancing customer satisfaction: Real-time visibility of vehicle location and estimated arrival times can improve customer experience via automated alerts.
  5. Reducing operating costs: Automated processes such as job allocations, creating rosters and schedules, and asset tracking can reduce administrative costs and prevent downtime.
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Important Technology that can Help you Digitally Transform

Digital transformation in transport requires the integration of intelligent software solutions, like ORCODA’s Transport360 that work together in real time with your accounting and enterprise software etc to analyse mass amounts of data that result in a streamlined transport operation. Key areas where software can help you digitally transform include:

  1. Intelligent Transport Management Software: Automating manual and time-consuming administrative tasks (such as scheduling, rostering, routing, dispatching, invoicing, data entry), as well as the optimisation of a massive number of attributes and constraints, will help your transport operation by reducing administrative costs and improving accuracy.
  2. Telematics: Telematics solutions provide real-time collection of vehicle data in-field, which leads to valuable insight into vehicle and driver performance. This enables managers to efficiently manage large fleets and improve driver behaviour.
  3. IoT: IoT require electrification and connectivity for the multitude of smart devices that are used in-vehicle, in-field or in-office to efficiently and effectively manage transport operations.
  4. AI: AI-powered solutions that analyse mass amounts of data to continually improve and enhance operations of your staff, schedules, routes and fleet.
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The Importance of Integration

To fully realise the benefits of digital transformation, it is essential to integrate different software solutions and ensure they work seamlessly together. Integration enables transport managers to access real-time data and insights, automate processes, and make informed decisions. A centralised transport management system can provide a single source of truth for all operational data, enabling better decision-making and more efficient operations. The utilisation and integration of distributed ledgers, smart contracts, blockchain and artificial intelligence can further enhance your digital transformation.

integration

Your Digital Transformation Journey

The digital transformation journey for transport managers and operators typically involves several stages, including:
1. Assessing current processes and identifying areas for improvement.
2. Setting goals and defining key performance indicators (KPIs) to measure progress.
3. Selecting and implementing digital solutions that align with business goals and KPIs.
4. Training staff and ensuring buy-in from all stakeholders.
5. Continuously monitoring and optimising processes to achieve ongoing improvements.

Digital transformation is the future of intelligent transport management. Worldwide spend on digital transformation technologies and services worldwide will jump by 56%, from US$2.49 trillion in 2024 to US$3.9 trillion in 2027 (Source: Statistica Nov 2023).

By embracing digital transformation, transport operators can improve efficiency, reduce costs, enhance customer satisfaction, and stay competitive in an increasingly challenging market.

Author: Nathan Murray, Client Success Manager, Orcoda

Watch the 30sec video summary HERE
Last Mile Delivery Time

In today’s convenience-driven world, customer expectations around delivery have reached unprecedented heights—especially in the last mile, the critical final leg of the delivery journey from a transportation hub to the customer’s doorstep. For businesses, this is arguably the most pivotal stage; it’s where customer satisfaction is either solidified or lost, profoundly influencing repeat purchases and brand loyalty.

Gone are the days when customers were satisfied with vague delivery windows and minimal communication. Today’s consumers expect precision, transparency, and proactive communication, all powered by real-time technology. This shift is not merely a preference but a strategic imperative, as the last mile can account for a staggering 53% of total shipping costs. Understanding and adapting to these evolving demands is crucial for maintaining competitive advantage and ensuring profitability.

The New Customer Mandate: Speed, Transparency, and Control

Modern customer expectations for delivery are complex, extending well beyond simple speed to encompass a desire for comprehensive visibility, flexible options, and a commitment to environmental sustainability. Businesses that grasp this new mandate are better positioned to succeed.

Speed: Balancing Urgency with Value

The demand for rapid delivery has intensified significantly, highlighted by 55% of consumers willing to pay for same-day delivery. However, this pursuit of speed is often balanced by a strong preference for cost efficiency. A report from 2024 highlights that 90% of consumers are willing to wait two or three days for deliveries, particularly if it allows them to avoid shipping costs. Over 95% of survey respondents express a preference for free shipping with standard delivery over paid expedited options. This indicates that while ultra-fast options are valued by some, consistent, predictable, and free delivery within a reasonable timeframe is paramount for the broader market.

last mile delivery

Transparency: The Demand for Real-Time Visibility

Beyond mere speed, modern consumers demand complete transparency throughout the delivery process. A significant 83% of consumers want an accurate Estimated Time of Arrival (ETA) for their orders, and 93% want to be kept in the loop with regular updates. This level of communication is not just a convenience; it serves as a critical tool to reduce customer anxiety and minimise inbound support inquiries.

Real-time tracking technology is rapidly gaining ground as an essential tool to provide consumers with transparent and accurate information. Studies indicate that a substantial 88% of customers expect the ability to track their orders in real-time. When real-time tracking is available, a remarkable 96% of consumers utilise it. Companies that provide this service tend to see higher customer satisfaction rates; for instance, Amazon has directly linked its real-time tracking capabilities to a 25% increase in customer satisfaction scores.

transparency to head office through transport technology

Sustainability: The Green Imperative

Environmental sustainability is a growing concern for both businesses and consumers, increasingly influencing last-mile delivery trends.

%

Likely to choose retailers with sustainable delivery options

%

of logistics CO2 emissions come from last mile delivery alone.

The Business Impact: When Expectations Aren’t Met

88% of consumers may abandon their online shopping cart if delivery terms are perceived as poor, such as slow delivery or high costs. Delayed deliveries and substandard service frustrate buyers, leading them to switch to competitors who offer more reliable solutions.

To navigate the complexities of rising customer expectations and mitigate the associated business risks, strategic investment in advanced technology and operational innovation is essential.

Leveraging Advanced Technology

Modern logistics relies heavily on sophisticated technological solutions to enhance efficiency and meet demanding customer expectations.

  • AI and Machine Learning for Route Planning and Predictive Analytics: These technologies optimize route planning, accurately predict delivery times, and significantly enhance overall operational efficiency.
  • Real-Time Tracking Systems: Modern technologies like GPS, IoT, RFID, and cloud computing provide constant, immediate updates on the location and status of goods in transit. This real-time visibility enhances transparency for both businesses and customers, allows for proactive problem-solving, and significantly boosts customer satisfaction. FedEx, for instance, achieved a remarkable 30% reduction in delivery delays by integrating GPS tracking with advanced route optimisation algorithms
  • Digital Proof of Delivery: Implementing digital proof of delivery systems, which include GPS time and date stamps, photographic evidence, customer signatures, and driver notes, provides accurate and verifiable confirmation of successful order completion. This crucial feature reduces disputes, ensures accountability, and builds greater trust.
Smart Logistics Australia. A vibrant digital image displaying real-time logistics data, illustrating improved visibility and operational control.

Orcoda: Your Partner in Elevating Last Mile Deliveries

Orcoda provides a comprehensive suite of integrated logistics solutions designed to empower businesses to not only meet but exceed today’s demanding customer expectations while optimising operational efficiency and profitability.

Orcoda Logistics Management System transport technology
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Streamlining Operations with Transport 360

Transport 360 is engineered to address the multifaceted complexities of the last mile by delivering true optimisation across numerous operational constraints. This powerful system intelligently matches the right personnel, parcels, drivers, vehicles, schedules, and routes, all while minimising constraints and mitigating risks. This holistic approach maximizes asset utilisation and operational efficiency, leading to tangible, real-world results for clients. These include:

  • 10% reduction in fleet size
  • Impressive 80% cut in scheduling time
  • 25.4% reduction in empty kilometres
  • Significant 20% decrease in CO2 emissions

These efficiencies directly translate to substantial cost savings and improved delivery times, directly meeting customer expectations for reliability and speed while simultaneously boosting overall profitability.

Enhancing Customer Experience
with fastmile

fastmile, Orcoda’s specialised last-mile delivery software, is purpose-built to provide exceptional service and unparalleled transparency to customers. It offers crucial features such as real-time data, live Estimated Time of Arrival (ETA) updates, and robust digital proof of delivery, which includes GPS time and date stamps, photographic evidence, and digital signatures. By providing accurate delivery windows and continuous updates, fastmile significantly reduces customer anxiety and builds trust, directly addressing the pervasive demand for transparency and real-time visibility. Furthermore, the intuitive customer portal enhances transparency and convenience, allowing customers to access their job history and gain control over their delivery experience.

last mile delivery software fastmile

Ready to transform your last mile into a competitive advantage?

Discover how Orcoda’s integrated logistics solutions can help you meet rising customer expectations, optimise operations, and drive profitability.

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