Extending Your Reach With Delivery Services

Companies are always looking for ways to build relationships with their customers that will extend beyond the product and build customer loyalty. One method being adopted by many companies is providing delivery services to their customers. In a world of social distancing and increased regulations for operating instore activities, having the ability to provide delivery services is increasingly important to keeping businesses viable. The New York Times reported that online consumer spending jumped nearly 40% at the height of the pandemic. In-person shopping had already dramatically decreased prior to the coronavirus as younger shoppers opted for online options.

Delivering the product to the end customer in many cases can run 30% with food deliveries as high as 45% of the total meal cost (TMC) cost. This can be difficult to hide in the cost of the product and is often waived as a competitive edge. Use of third-party delivery services has traditionally been the answer to this question, but many companies such as Amazon are opting to build out their own delivery services. The phenomenal growth of digitally-enabled delivery services indicates that customers value the convenience and variety they provide. McKinsey estimates that the digital food delivery market alone will be worth $22 billion by 2025. Now many companies are looking to tap into that revenue by internalizing their delivery services.

Properly run services can increase customers loyalty, provide lower cost ability to respond to emergency product demand, maintain control of customer data, and tighter control of the delivery process. Delivery services can also be a source of revenue for the seller and increase margin if effectively managed. However, poorly run delivery services can be a costly mistake.

To be effective in planning and executing deliveries, companies are adopting delivery management solutions to streamline how their delivery services are performed. Being able to organize routes and build delivery plans are critical to providing effective services and lowering the cost of managing delivery operations.

NetScore’s Delivery Routing application is built on the NetSuite ERP system to provide a complete planning solution for organizing delivery orders into routes. A mobile application is included to provide drivers with everything they need to carry out the deliveries.

Getting organized is a key element to running a successful delivery operation. As sales orders are processed and fulfilled in your NetSuite solution, NetScore’s Delivery Routing system takes the orders and creates delivery orders. The route planning capability using a geo-point mapping solution to organize the delivery orders into stops on the route. A rule based system allows for further control over the building of routes and can control the number of orders to be included, management of weight and volume capacity by truck type, and time to complete routes based on the calculated transit times between stops. Routes can be adjusted to meet the route planner’s preferences and assigned to a driver.

Keeping control over your delivery fleet is critical to ensure drivers are following the most effective route and keeping on schedule. NetScore gives planners the ability to view graphical representations of each route and see updates as deliveries are completed. A map view shows the planner all drivers location in real time. Routes can be adjusted while they are in progress if needed due to changing requirements by the customer. Delivery orders can even be moved from one driver to another in the event a delivery vehicle breaks down or additional assistance is needed to complete the route.

Making your driver’s life easy is key to running a delivery service that is cost effective and efficient. Route plans that provide the most effective method of accomplishing each delivery is critical. Being able to properly load trucks in reverse stop order makes sure each order to be delivered is properly positioned on the truck. NetScore’s solution produces a route plan that can be used as a picking document or loading document to properly position orders on the truck.

Execution of the route plan is critical to achieve the objective of delivering product on time and at the lowest possible cost to the service provider. Mobile applications now put powerful tools in the hands of drivers to assist them in carrying out their deliveries. Effective applications like NetScore’s Delivery Routing solution provides:

 

  • Travel time between stops.
  • Graphical depictions of the route plan
  • Turn by turn instructions.
  • Order contents to be delivered.
  • The ability to send alerts to customers of impending delivery.
  • Enter reasons for delivery cancellation if the customer refuses delivery.

 

Proof of delivery is an important element to any delivery service to capture signatures, photograph product drops, and note other key information regarding the delivery. This gives the service provider undisputable evidence that the product was professionally delivered and accepted by the customer. NetScore’s mobile application incorporates all these features and allows the driver to quickly gather the information. The proof of delivery information is then automatically uploaded to the backend system and attached to the delivery record. NetScore gives you the value added integration to Google Drive to store pictures and signatures keeping your NetSuite data storage to a minimum.

Moving beyond delivery can be advantageous to many companies to optimize what their delivery service operation can produce for the company. Being able to perform functions like:

  • Picking up returns during their delivery route.
  • Accepting payment from customers for outstanding invoices or cash on delivery orders.
  • Picking up product based on purchase orders issued by the service provider.

NetScore’s Delivery Routing application provides all features described above to your NetSuite system and the associated mobile application.

To help you plan and implement your delivery service, please reach out to NetScore Account Executive.

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Getting Creative With Rentals

As the corona virus took hold and businesses shut down across the globe, many were forced to get creative to survive. One hard hit industry is health clubs forced to shutdown due to the inability to maintain social distancing for their customers. Many have suffered dramatic losses, and some may not reopen. However, some are getting creative allowing them to stay in touch with their customer base and generate revenue for their businesses. One common thing they all have is a substantial amount of assets from treadmills to stationary bikes, weights, and other workout equipment sitting idle.

Julie Guttormson owner of an exercise facility in Wyoming decided to rent her workout equipment to existing customers who wanted access to equipment at home but didn’t want to spend the money needed to purchase it. This offered a great solution for people dealing with stay at home orders that wanted to continue their exercise routines. Within two weeks 70% of Julie’s equipment was rented with a waiting list for some of the more popular items. She extended her business offering by including online classes that the renters could attend. This type of creative thinking provided a winning approach to a difficult situation.

S&P Global Ratings is forecasting a steep global recession with global GDP reduced by 2.4% in 2020. They expect the economic contraction and reduced capital expenditures (capex) by key end markets to curtail demand for original equipment. Rental of equipment is an option that many companies are turning to as sales of big-ticket items slow in the face of the pandemic.

Companies ask “how do I learn what is needed to build a rental business as part of my product offering?” Clearly there are many considerations and requirements that need to be addressed when managing a fleet of rental assets. Having the right resources to maintain a fleet of rental equipment is critical in maximizing profit for this business. Working with a partner who understands all of what needs to be considered and effective tools to meet those demands is extremely helpful when expanding into this line of business. NetScore’s Rental Management software provides the tools NetSuite users need to manage the entire rental process. Our team of experts has helped numerous companies take the necessary steps to build their rental business and manage it effectively.

Building a rental asset pool is the first step which generally involves creating a separate (can be virtual) warehouse where rental assets are managed. This removes the items from your saleable asset pool and allows you to easily manage the rental and return process. It also facilities the ability to depreciate the assets for those companies wishing to do so.

Scheduling and reserving items is an important aspect of rental management especially for companies who deal in longer term rental contracts. Having a scheduling tool that lets you view rental requests and reserve assets is critical for demand planning. Being able to take deposits against reservations helps ensure customers are committed to the future rental. This is also needed when you rent equipment that periodically needs to be removed from the rental pool for maintenance.

Managing rental assets on contract for long term rentals means you need to be prepared to manage situations like equipment failure, routine maintenance, and the need to replace equipment in the field. Having the ability to swap out equipment during the rental and updating the contract to show the replacement is a complexity that needs to be dealt with.

Maintaining your equipment and capturing maintenance costs helps you get a true picture of the profit generated by a rental asset. Keeping track of maintenance records, cost of repair, preventive maintenance, and other items needed to keep your rental asset pool operational is important. This is especially important for equipment that needs to be calibrated or certified such as medical equipment.

Billing can be complex for rental contracts that span longer periods of time and requires generation of invoices on a billing schedule. Keeping track of each rental contract and generating invoices can be a time-consuming process. Having an automated billing engine that manages this process can simplify this process for long term rentals. With NetScore’s billing engine, invoice generation can be automated and can consider discounts for individual items or for the entire rental contract.

Accounting for your rental business requires the need to properly recognize revenue, capture costs, and even depreciate your rental assets. NetScore’s rental management solution handles everything needed to properly account for your rental business and manage it with your NetSuite financial solution.

While there is a lot to consider in managing your rental business, our team of experts and software solution will ensure your rental business will deliver the desired results. If now is the time to explore how you can expand your business model to include equipment rentals, reach out to NetScore Account Executive to get things started.

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Riding The Coat Tails Of Online Giants With Omni-Channel Solutions

 

As the economic impact of the corona virus unfolds on the world economy, customers have been driven to online marketplaces for safety and in some cases due to closing of traditional stores. According to BigCommerce online sales will increase from $3.5 trillion or 14% of retail sales in 2019 to $4.2 trillion or 16% of retail sales in 2020. However, some of the short comings of online sales has been the inability for shoppers to touch or feel product, try it on or visually see how the product will fit into their home. Many small businesses have struggled to incorporate capabilities into their websites that mimic the in-person shopping experience. However, the larger marketplace players such as Amazon, Walmart, and others are investing enormous amounts of money to do just that. Technology such as Augmented Reality (AR), Voice Search, Artificial Intelligence (AI), and Big Data are being deployed to personalize shopping experiences.

Gartner predicts that 100 million consumers will shop in Augmented reality online and instore experiences by the end of 2020. As such, this type of technology will become mainstream for businesses of all sizes eventually. However, it also comes with a hefty price tag that is beyond the reach of many small businesses.

NetSuite users have many significant advantages that the solution brings to their business. One of the most significant is its ability to manage Omni-Channel sales structures tying together ecommerce marketplaces, webstores and EDI relationships. One approach to providing a more sophisticated shopping experience is tying into the Amazon, Walmart and other marketplaces that utilize these technologies.

Development partners such as NetScore, produce ready made connectors that will give your company access to many of the large online marketplaces. You get the advantage of their technology spend in the selling experience without the cost of deploying the technology yourself.

Building an Omni-Channel network does have challenges when it comes to deploying and maintaining your network. Many of the providers of connectors charge a substantial fee for setting them up on top of the annual subscription you will pay for the application itself. Additionally, you can expect more consulting fees when updates are needed, or you choose to deploy more advanced capabilities.

Most connectors have a defined data set that consists of the data points the trading partner utilizes and the corresponding fields in NetSuite. Some data points center on features you wish to manage through the connector and are typically defined in the connector documentation. The deployment of the connector becomes mostly a mapping task of tying together the fields where data will be pulled from or delivered to.

Some NetSuite customers will deploy a number of connectors as they tap into marketplaces, 3PL’s, webstores and shipping solutions. Managing a network of connectors can be tricky in some environments needing constant attention to ensure data is flowing smoothly. However, NetScore recognized the need for companies to take a more “do it yourself” approach to managing their networks and save on consulting fees. Earlier this year they released their IPass solution providing a tool to do just that.

IPass provides an application for your NetSuite platform that allows customers to manage their connector network without the need for consulting services. With their available connectors for Amazon, Walmart, eBay, Jet, Wish and more, customers have a wide variety of marketplaces to choose from and a tool that is preconfigured with the connection points. Users simply deploy the connector and use their IPass tool to map the desired fields to their NetSuite solution.

The built-in command center allows users to quickly configure purchased connectors using a preconfigured mapping tool. Users can quickly map out fields they wish to connect, and a scheduler allows for controlling the frequency of each items update. Fields are categorized into intuitive groups such as product, inventory, images, orders, billing, shipments and more. Audit and error logs allow for monitoring each connectors activity with the ability to correct and process any failed transactions.

There will come a day when we will all be trying to figure out how augmented reality and other such technologies will play into our online presence. However, leveraging the online marketplaces and riding the technology coat tails of the big marketplace companies can go a long way to providing your customers with the best possible buying experience.

For more information on NetScore’s connectors, IPaas solution, and services, please reach out to NetScore Account Executive.

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Is Your Delivery Software Intelligent?

As someone who has been involved in technology my entire career, my curiosity is always drawn to new ideas, concepts, and technology. Over the last couple of years, I keep hearing more about the “Internet of Things” (IoT) and how it is impacting today’s technology solutions. I thought I would use this writing to explore how it is now offering new frontiers for software developers to enhance their products through utilization of IOT.

For those of you that are not that familiar with IOT, Wikipedia offers a decent explanation. IoT is described as a network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet. As the concept has evolved, other technologies such as artificial intelligence (AI), real time analytics, embedded sensors, and big data mining, have become building blocks to build a new generation of solutions.

According to Fortune Business Insights, “The global IoT market size stood at 250.72 billion USD in 2019 and is projected to reach 1.4 trillion USD by 2027”. The impact has crossed a broad spectrum of industries with a few examples being consumer products, medical, transportation and logistics, manufacturing, and communication.

When NetScore first started development of their Delivery Routing solution, they built in the standard features that allowed you to organize customer orders into delivery routes. The early edition included features such as:

    • ●Manual Route Planning
    • ●Signature capture
    • ●Viewing a map of the route plan
  • ●Re-assigning routes
  • ●Perform PO pickups
  • ●Re-assigning routes


As the solution was deployed through the customer base, a common request was the ability to view the location of their trucks in real time. As the development team started exploring solutions, they realized that they could truly take the solution to the next level by incorporating IoT solutions as part of the offering. Leveraging the technology would solve tracking trucks in real time, but also extend to monitoring statistics regarding the vehicle, driver, traffic, and even sensors on the vehicle. The commitment to adding the capability to manage this type of information required revising the infrastructure of the product. While this was not a simple task, the value of enhancing the solution opened broad areas where the application could be expanded.

NetScore decided to partner with Particle who specializes in building sensors that can be leveraged by other developers to bring IoT to their solutions. They produce sensors for a wide variety of applications but offered a product line designed for the fleet management and transportation industry. Figure One shows the relationship of the Particle solution and its integration to NetScore.

Figure Two shows the revised data flow representing how information moves through the Particle IO cloud to the NetScore cloud solution. Additionally, NetScore has included the ability to manage and analyze the data through incorporation of Artificial Intelligence (AI) and Data Analytic tools.

Delivery operations are both capital and cost intensive to maintain, so companies are always looking for means to lower their costs and increase efficiency. Optimizing routes using real time traffic information can save fuel, driver time, and help maintain delivery schedules. Sensors that monitor temperature for refrigerated trucks can warn of a possible refrigeration failure that could jeopardize a full load of product. Monitoring vehicle speeds can help management determine whether trucks are being driven safely and help reduce accidents.

The value of the information being gathered increases over time as you now can use AI and Data Analytic tools to analyze the data. This will help spot trends, allow for predictive action, and better manage your assets. You are probably thinking about where all this data can be maintained since storage can be expensive. NetScore is integrating with Google Cloud Storage to provide an affordable option for storing your data. The integration will allow for seamless management of your data with the full ability to leverage your Data Analytics and reporting tools.

As I mentioned early on, making incremental improvements to how you plan routes, deploy your delivery assets and care for your delivery fleet, will add up over time. Deploying a solution that can leverage IoT technology, AI, and Data Analytics, will result in a quick return on investment. It will also increase your customer satisfaction and build a reputation for delivering your product efficiently and effectively. For more information on how NetScore is leveraging IoT in their Delivery Routing solution, please reach out to NetScore Account Executive.

Squeezing Cost Out of Your Delivery Operation

Running an effective delivery operation is a challenge. Costs associated with delivery services can get out of hand if not monitored on a continuous basis. According to Insider, last mile delivery amounts to 53% of shipping costs. If you have ever tracked a package and it said “out for delivery” this is the area we are focusing on.

Many distributors are electing to carry out this process by adding their own delivery service to their operations. Customer expectations are high as companies like Amazon have established services such as Amazon Prime. This type of delivery service can involve hundreds of stops with delivery of small amounts of product. This scenario compounds the need for efficiency as now a broad range of efficiency-sapping factors are at play. Understanding those factors and ability to monitor them provides a key element in controlling these costs.

Delivery fees

Delivery fees can contribute to a company’s revenue stream and cover costs of the delivery service. It is important to understand the costs to arrive estimate delivery fees. A solution like NetScore’s Delivery Routing application gives companies the ability to track costs over time. This level of information provides the ability to estimate delivery fees.

Driver time

Driver time is a significant cost and must be managed as it controls how many deliveries go out in a shift. Route planning tool accounts for:

    • ●Transit time from one stop to the next
    • ●Unloading product
    • ●Loading returns
  • ●Acquire proof of delivery
      • ●Communicating with the next stop

The above factors can all affect delivery time. Time stamps for each delivery can, over time provide an estimate of time needed to account for these factors. NetScore’s Delivery Routing solution timestamps each delivery stop and provides real time driver locations.

Fuel

Fuel is a variable cost that can improve by use of intelligent routing solutions. The solution determines the most efficient route based on the planned stops among other factors. Integrations to solutions like Google Maps can determine potential traffic snags, road closers, and accidents that can make a route inefficient.

Truck maintenance

Truck maintenance is critical to maintaining an efficient delivery operation. Trucks breaking down while en route to a delivery can be costly. Some possible challenges due to this are:

    • ●Unhappy customers
    • ●Perishable product go bad
    • ●Alternate vehicles must be pulled into service
  • ●Product transferred from one truck to another
      •  

NetScore’s solution lets you keep track of maintenance activities, schedule preventive maintenance, and let you know when a truck needs maintenance.

Vehicle constraints

Vehicle constraints such as weight capacity, load volume, and truck assets (refrigeration, lift gates) impacts the choice of appropriate truck for a route. Companies need the flexibility to assign appropriate trucks and assets to a route to optimize costs. NetScore’s Delivery Routing Solution helps build routes to optimize the vehicle capacity. It can also ensure keeping the weight well within limits to reduce fines and excessive vehicular wear and tear. Optimizing loads can be accomplished with the right delivery management software.

The right information helps make better routes which in turn reduces costs. NetScore’s Delivery Routing Solution soon will be able to integrate with other solutions to provide enhanced capabilities. Examples of this include integration your NetScore Warehouse Management Solution that allows for delivering product to the loading dock in order sequence. This allows for easier loading of trucks in reverse stop order to make unloading efficient and quick. This solution can integrate with solutions from Google for real time mapping capabilities and Google Cloud Storage. A new integration with Particle enhances features in fleet management and integrating sensor technology which all offer opportunities to remove costs.

Running a cost-effective delivery operations is a challenge. But, leveraging the right software to manage this process will provide a solid return on investment in the form of lower costs, higher customer satisfaction, and optimum performance of your delivery service team. For more information on how NetScore can take your delivery operation to the next level, please reach out to NetScore Account Executive.