How Last-Mile Tracking is Revolutionizing UAE Logistics
The rise of smart technology and a tech-savvy, mobile-first population means that UAE has left old-world delivery methods behind for good.
When it comes to knowing what UAE shoppers expect from their delivery service, then last-mile tracking should be near the top of any checklist for modern Direct to Customer (D2C) and ecommerce businesses.
The world has come a long way from text messages to send us a tracking number and rough delivery status of our online purchase. Inspired by the groundbreaking Uber revolution, cutting-edge location tracking technology has now transformed the delivery landscape.
Last-mile courier tracking embodies this digital transition, handling full control of the process over the customer and dramatically boosting the delivery experience.
The pandemic has fuelled the surge in demand for deliveries, and it’s a trend that’s set to continue over the next decade. According to Allied Market Research, the global last-mile carrier industry was worth $131.5 billion in 2021 and is set to more than double to $288.9 billion in 2031, making for a Combined Annual Growth Rate (CAGR) of 8.1%.
Last-mile delivery tracking in the UAE is a key feature of what analysts consider to be the most advanced e-commerce market in the MENA region.
A young, internet-savvy population now has an internet penetration of 91%, according to marketing analysts Ken Research. Consumers are used to the latest data beamed directly into the device in their hands, whether it’s a live sports score or a flight tracker telling them the exact location of their airplane.
They now want the same from their deliveries.
Access to real-time information about their delivery at the click of a button, not just an estimated delivery date and a phone number to call if things go wrong, is now a prerequisite of any online order.
UAE logistics firms are facing a stark choice: to surf this wave of new technology, or get cut adrift.
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What is last-mile tracking?
If you had to explain last-mile tracking in the simplest terms, you might say it’s a way of making sure the delivery person gets your package to you on time, and there’s no need to complicate it much more than that.
How we track this crucial last section of the item’s journey, though — between the distribution center and the customer’s home — has become much more sophisticated over the last few years.
If SMS messages were one step forward for the logistics industry, then real-time tracking info is the giant leap, giving us live updates of where our parcel is, the minute it’ll be delivered, and even showing us what the driver looks like.
The UAE, in particular, is in the grip of a final-mile delivery revolution. The rapid shift toward e-commerce means online customers who can’t touch, smell or see the product at the moment of purchase want to wrest back control in other ways, and overseeing the delivery process is filling that gap.
But the benefits aren’t just restricted to end customers in the UAE. Businesses in the region are finding that last-mile technology is reaping rewards for their own performance.
The 4 benefits of last-mile delivery for ecommerce businesses
Far from being the reserve of dominant industry players, like DHL, Fedex, and Amazon, last-mile delivery is fast becoming a must-have feature for smaller entities in the MENA region.
D2C businesses that have successfully adopted last-mile tracking in the UAE have seen benefits in both their customer-facing and internal operations, while also helping them to meet the unique challenges of same-day deliveries.
It improves efficiency (and slashes costs)
For UAE providers, a busy market means getting the most of the time and resources that you have. Frittering money away on wasted fuel and excess driver hours is a huge no-no.
Modern last-mile carrier tracking uses smart technology that’s designed to maximize the efficiency of the courier service, cutting down on costs in the process.
A prime example is producing smart routes for couriers, an automated algorithm that pools data from smart addressing and expected delivery times, and creates the most economical drop-off sequence possible. This way, a driver avoids unnecessary wrong turnings, U-turns, and even traffic jams as the route updates itself according to live GPS data.
GPS data also helps when it comes to providing real-time updates of the courier’s location for both the customer and the company’s back office. If the recipient knows the package’s tracking status and an estimated time of arrival (ETA) accurate to the minute, then they’re more likely to be at home to accept delivery.
Not only does this slash the risk of a wasted journey, it also makes payment-on-delivery much more likely, still a preferred choice of payment for many customers.
When done well, last-mile parcel tracking gives the logistics provider an overview of the vital final leg of the fulfillment process. Managers can optimize routes, stay in constant touch with the customer, and identify bottlenecks: three powerful tools when it comes to performing seamless deliveries, and keeping those time and money drains to a minimum.
2. It enhances the customer experience and builds loyalty
A central part of building customer loyalty is to make their delivery experience as stress-free and as personalized as possible.
Uber mastered this by removing common anxieties from taxi ordering, including not knowing when the driver would arrive and worries about the final price. They also excelled at making the customer feel as if the service was tailor-made for them.
It’s up to delivery companies to do the same.
Research from KPMG found that stimulating consumer brand advocacy and loyalty in the UAE comes down to six crucial pillars: personalization, time and effort, meeting expectations, integrity, resolution, and empathy.
The six pillars of brand advocacy and loyalty in the UAE
Source: KPMG
A modern last-mile tracking system ticks these boxes.
Firstly, it meets high customer expectations by giving them a sense of control. Not only do they know exactly where the item is at every stage of its journey, they have a direct line to the driver in case of any issues.
Each delivery feels personalized, and gives the impression that the distributor is paying special attention to them rather than treating them as just a number. A customer that feels involved in the process is more likely to want it to work, which boosts the chances of a successful delivery.
High delivery resolution rates spur further transactions in the future: a satisfied customer will pass on positive comments about the delivery process to friends and family, sowing the seeds for repeat purchases and referrals.
In short, a delivery process focussed on these core principles is the route to growth, and a modern last-mile service is the best route toward that.
3. It reduces customer issues
If there’s one thing that damages a delivery firm’s reputation it’s customer support issues, including not knowing where the parcel is and failing to meet service level agreements (SLAs).
Last-mile shipment tracking allows ecommerce companies to nip these issues in the bud by identifying issues before they occur, or taking sensible action that covers the courier’s back. This could include payment preferences, such as the customers desire to pay with cash upon delivery.
We’ve spoken about how real-time delivery updates keep both parties informed, but last-mile technologies spring into action at the point of sale, ensuring the customer gets an online tracking number and ETA automatically. This avoids complaints and chargebacks that they’re within their rights to make should they not have this data to hand.
Once the delivery happens, the driver can collect an in-app proof of delivery. When triggered, it informs managers of a successful resolution, updates stock counts, and stores evidence of the customer’s satisfaction.
Fewer complaints helps a business’s relationship with its customers; fewer chargebacks helps its relationship with its bank manager. By minimizing the errors that lead to complaints and refunds, delivery firms are repairing a revenue leak, freeing up money to be spent on improving other areas of the business.
4. It boosts brand reputation (and keeps rivals at arm’s length)
In a competitive UAE delivery industry, image and reputation matter. Stories of missing parcels and uncommunicative couriers have a habit of finding their way into the public sphere, pushing potential consumers into the arms of rivals.
Ecommerce companies that give customers access to a cutting-edge delivery experience, via an all-in-one mobile app with live updates on demand, will be the ones who score highest in online reviews and increase their client base.
The cost of upgrading outdated delivery services may be significant, but it’ll be much less than the reputational damage caused by slow or missed deliveries and inefficient communications.
In the UAE delivery industry, where two-thirds of customers will happily pay more for same-day delivery, last-mile technologies are the quickest route toward fast, seamless digital logistics fit for the 21st century.
How to integrate last-mile delivery into a business
Retailers looking to bring their delivery logistics up-to-speed and integrating a last-mile carrier facility into their operations can quickly do so, but they must first meet a series of important criteria.
Ensure the company is system-ready (from SMS to proof of delivery)
Like a well-oiled machine, a sophisticated last-mile delivery system is the sum of its parts: it can only function properly if every component is in sync with the rest of the process.
The cohesion of a delivery system can be the make-or-break between meeting tight service level agreements (SLAs) or not. Just one broken link can cause irreversible damage to a company’s reputation in the eyes of customers.
A smooth build-up to the last stage of the journey is therefore crucial. An e-commerce platform must be in tune with the warehouse management system which, in turn, must activate SMS notifications once a product has left the shelf.
Only then is the stage set for last-mile fulfillment, with each stakeholder knowing exactly what to expect as the item makes its way to its final destination.
Choose the right logistics platform
Digital logistics platforms are proving to be the most effective vehicle for the latest last-mile delivery systems, offering a one-stop shop for all members of the supply chain.
Cost-effective and easy to integrate with online storefronts, they allow retailers to oversee an on-time delivery process, manage a professional fleet, and address customer issues from one all-inclusive dashboard. This solves the fragmentation that blights many delivery processes by unifying every stage of the fulfillment process under one umbrella.
Yet, choosing the right one is essential.
UAE customers have high expectations when it comes to receiving their products, so any blip in the delivery process can have huge implications.
A retail firm that does its homework and picks out a top-quality logistics platform will reap the dividends long after they pay for it.
Ready to take on a digital logistics platform that maximizes your last-mile delivery efficiency while minimizing costs? Jump onboard with Swftbox in just five minutes to supercharge your deliveries.
