8 Ways Dispatch and Delivery Management Systems Impact Your Business

The expectations of buyers—both consumers and businesses—for delivery experience continues to rise. What was considered excellent just a short while ago is now a baseline, and the kind of service that wraps around the whole journey from product selection to post-sale care plays an increasing role as people choose who to buy from. The challenges for dispatch and delivery multiply as keeping cost, service and customer satisfaction in a profitable balance becomes more and more difficult. 

Rising customer demands, a volatile global supply chain, and new technologies have converged to change the nature of dispatch and delivery, accelerating the development of smart, cloud-based, highly-connected delivery and dispatch management software that helps operators meet the moment.

This kind of software has become a necessity for operators of all sizes in markets across the board: retail, furniture, food distribution, building supplies, healthcare, and myriad other industries now rely on modern capabilities including automated customizable communications, AI assistants, smart capacity optimization, and reliable routing that can produce accurate ETAs on the fly.

Let's look at how delivery operators can best leverage these capabilities. 

What Is Dispatch Management in Modern Delivery Operations?

What is dispatch, exactly?

In logistics, dispatch refers to the process of assigning delivery tasks to drivers and managing their schedules and routes. Dispatch management serves as the command center of your delivery operations, coordinating which drivers handle which deliveries and when.

What does dispatch mean in shipping?

Dispatch is the critical coordination point where orders are assigned to specific vehicles and drivers, with detailed instructions on pickup locations, delivery destinations, and time windows. Effective dispatch is the backbone of successful delivery operations.

Delivery management meaning: 

Dispatching is one element of the larger delivery management process that encompasses the entire process of turning a customer order into a successful delivery and a satisfied customer. Dispatching sits in between delivery route planning and driver management and tracking, making it a crucial piece of the delivery management puzzle. 

All told told, delivery management usually encompasses order management, route planning and optimization, dispatching, driver management, delivery tracking, customer experience management, and proof of delivery. Since dispatching is so intimately tied up with the rest of the last mile process, delivery management and dispatch manage are like two sides of the same coin. 

Modern dispatch and delivery management software can revolutionize how you manage dispatching drivers, gain visibility into deliveries, and boost customer satisfaction through smarter, more connected delivery experiences. Given the logistical challenges, investing in a modern order and delivery management system has never been more important.

The Role of a Dispatch and Delivery Management System

For companies with delivery operations, reducing costs—by completing a higher percentage of deliveries on the first attempt, fully utilizing fleet capacity, creating highly efficient routes to lower fuel consumption, all while also keeping customers satisfied—is key. These goals, which can be in conflict, are challenging but achievable with the right dispatch management system. Modern dispatch solutions help businesses manage, plan, execute, and optimize delivery processes by functioning as a centralized hub that ties together the seller, customer, dispatcher and driver. This creates comprehensive supply chain visibility and serves as a single source of truth.

To achieve these benefits, your dispatch and delivery management tool needs specific features designed to automate and optimize tasks and workflows. These typically include route optimization, electronic proof of delivery (ePOD), and customer communications.

Dispatch and Delivery Management vs. TMS

The difference between dispatch and delivery management systems and transportation management systems (TMS) can be confusing. Dispatch management offers a holistic approach best suited for fleets handling deliveries across the last mile. It facilitates fast and effective information exchange between delivery agents and teams, proactively supporting operations, improving efficiency, and enabling "right-time" deliveries.

Conversely, a TMS focuses more on lane rates, external fleets, and customs processes. It emphasizes planning and routing cargo drop-offs rather than handling deliveries in last mile logistics.

8 Advantages of the Right Dispatch and Delivery Management Solution

Dispatch and delivery management solutions can transform your operations in the following ways:

1. Route Optimization

Businesses that still depend on manual routing and dispatching when handling deliveries inevitably give customers inaccurate ETAs and frequently miss their delivery windows. Simply put, manual route planning results in lower customer satisfaction.

Fortunately, modern dispatch and delivery management solutions offer AI-powered route optimization capabilities that consider numerous factors such as vehicle capacity, delivery windows, driver schedules, traffic patterns, and real-time road and weather conditions. This optimization maximizes drivers' time and vehicle capacity while also providing customers with highly accurate ETAs.

2. Automated Dispatching

It's difficult to improve delivery productivity while relying on manual processes. Dispatch management software can automatically match drivers with the necessary skills and equipment with the right capabilities to each delivery without manual intervention. This eliminates printed delivery assignments, allowing dispatchers to focus on value-added tasks and drivers to view assignments through user-friendly mobile applications.

3. Fuel Cost Reductions

Fuel typically represents the single largest expense in a delivery, with volatile prices making budgeting challenging. Effective dispatch management software identifies driver behaviors like excessive idling and hard acceleration, allowing fleet operators to manage those behaviors and reduce fuel costs. Route optimization can also decrease fuel consumption by 10% or more by ensuring the shortest distance between stops.

4. Real-time Tracking

Fleet managers need to know what their drivers are doing at all times: Are they stuck in traffic? Following planned routes? On schedule for delivery windows? Encountering problems such as customers not being home? This is crucial for handling deliveries in an efficient way while routes are unfolding. 

GPS tracking integrated with routing and dispatching systems allows managers to see this information in real time. It also empowers customer support teams to provide accurate delivery updates, allowing them to reach out to customers proactively with communication—either manually or automatically—before problems arise.

5. Improved Driver Safety

Driver safety is a top priority for fleet managers. A major advantage of modern dispatch management solutions is real-time visibility into driver behavior, including data on harsh braking, cornering, and other unsafe driving habits.

Real-time driver tracking allows managers to monitor drivers and address dangerous habits through customized training. This requires seamless integration with other enterprise solutions, particularly telematics and asset management software.

6. Custom Reporting Options

Dispatch software should offer detailed, custom reports for data-driven decision making. These reports help managers identify trends, understand operations, and find areas for improvement. To do this effectively, the software needs to automatically gather and store data from every touchpoint in the last mile.

7. Electronic Proof of Delivery (ePOD)

Your dispatch and delivery management software should enable drivers to collect electronic proof of delivery through time- and geo-stamping, customer signatures, photos, notes, and more. This ensures a proper chain of custody and minimizes false claims about missing or damaged deliveries.

8. Higher Customer Satisfaction

When your routing and dispatching technology provides customers with accurate ETAs, real-time delivery notifications, and order tracking, you're well on your way to earning high customer satisfaction scores, critical for increasing loyalty and retention. The right solution boosts that satisfaction by enabling consistent on-time arrivals, which customers say is extremely important.

Beyond logistics, your dispatch management solution should create a holistic delivery experience that enhances your brand. This includes customized, branded delivery communications, real-time self-serve tracking via dedicated portals, and post-delivery surveys.

These features do more than keep customers informed: They build trust and establish a strong brand associated with delivery excellence.

Conclusion: Leveling up Your Dispatch Management

In our increasingly connected economy, companies with delivery operations must invest in the right tools. Dispatch and delivery management solutions represent some of the most powerful tools for improving fleet operations.

The right system helps cut operating costs while enhancing customer experience, creating a competitive advantage in today's challenging logistics landscape. Talk to one of our experts today to learn how DispatchTrack can help.