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The last mile delivery challenges have increased in the recent period, especially with the huge digital revolution that all sectors are witnessing. This made all companies from all countries of the earth try to modernize this digitization through creative solutions and enter into partnerships with the technology sector, which now provides solutions that double the profit and reduce the effort.

Concepts have also changed after the Corona pandemic, and the most affected of these sectors is the delivery sector. Where the delivery companies and e-commerce found themselves experiencing unprecedented prosperity, as a result of which they met a huge demand that they were unable to meet. This compounded the challenges of the last mile. In this article, we will explain to you the most important last mile delivery challenges and how to solve them in the best possible way.

What are last mile delivery challenges?

The last mile delivery challenges are all the issues that prevent the final products from reaching the end user.

These challenges result in the disruption of the entire supply chain strategies, in addition to wasting time and money and losing trust between the producer and the customer.

This is due to the failure of the delivery process, as the last mile delivery process plays a large role in the delivery process in general.

Which would contribute to achieving customer satisfaction, so facing these challenges is essential to keep pace with logistics technology.

Top 5 last mile delivery challenges

Last mile delivery accounts for approximately 54% of total shipping costs, and this item is the most important and efficient component of the supply chain.

With the Corona pandemic, the demand for e-commerce increased by a large percentage, which made electronic stores in need of speedy processing and meeting customer requests.

Last mile delivery helps online stores deliver customers their orders in a timely manner. But with the increase in last mile delivery challenges, companies are facing difficulty in this matter.

And the following are the most important 5 last mile delivery challenges that can hinder supply chains at the present time:

1. Difficulty meeting delivery deadlines

One of the biggest last mile delivery challenges is having trouble meeting deadlines. This is because fulfilling customer orders and delivery expectations is the most important thing they care about while shopping from online stores.

So different companies need to meet delivery deadlines and meet customer expectations as fully as possible.

This will help gain customer satisfaction as well as improve deliveries and make them more efficient.

2. Treating drivers in a fair way

Another important last mile delivery challenge is not treating drivers in a fair and human way. Perhaps those are the biggest problems as drivers must be treated humanely so that they can work hard and deliver on time.

Many dealers are only interested in making profits and quick delivery, and in return they ignore treating the drivers appropriately and put pressure on them.

In the end, this negatively affects the on time delivery and the fulfillment of customers’ requests on time.

3. Dealing with unpredictable factors

Many companies have trouble dealing with unexpected factors that suddenly arise in the delivery process. This problem is perhaps one of the most important last mile delivery challenges, as unexpected problems hinder last-mile delivery plans.

Especially since most of these problems are out of control, such as changes in the weather or sudden traffic factors.

4. Delivering to the correct location

Failed deliveries cost the company a lot of expenses and losses, and on average there are at least 10% of all deliveries in the other mile fail for a variety of reasons.

One of the main reasons for its failure is a problem in locating the correct customer location, as many drivers deliver orders at incorrect addresses.

Which brings the company a lot of costs, so it is one of the most important last mile delivery challenges, which would damage the company’s reputation and lose its customers.

5. Solving the single-delivery issue

One of the most prominent of the last mile delivery challenges is the single delivery issue, with customers becoming particularly focused on how quickly their individual order management can be delivered.

Most companies have a problem with individual delivery to customers, which makes customers dissatisfied with the service and threatens the reputation of the company itself.

How can you solve your biggest last mile delivery challenges?

As we have indicated, the last mile delivery costs represent more than 50% of the final shipping costs, so any problems or malfunctions with them will cost the company a lot of losses.

Having addressed the most important challenges, the best solution to address last mile delivery challenges is to rely on technology.

Where delivery services that rely on the latest technologies and modern technology will help in facing various challenges of last mile delivery.

As it will contribute to providing a reliable delivery network, and through Diggipacks, you can overcome the challenges of last mile delivery and provide the right delivery to customers at the required time and thus fulfill customer requests

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The shipping process is a complex process that requires great effort and organization for its success, and dunnage is one of the most important factors for the success of the shipping method. As this substance contributes to the arrival of the shipped goods to their destination safe from any problems.

Dunnage is basically one of the essential materials for safe shipments that all successful shipping companies use to keep their goods in good condition during transportation and handling. In this article, we will provide you with all the details you need to know about dunnage, its types, and its importance.

What is dunnage?

Dunnage is an expression for inner packaging used by shipping logistics companies. In order to protect the goods and parcels from damage during the transportation process, these materials are used as padding around the parcel as stabilizing beams.

This material may be hard plastic, bubble wrap, cork granules, sawdust, and other types. In general, the more fragile the goods being shipped, the quality and quantity of this material used to protect the shipment.

Why do shippers use dunnage?

Shippers use dunnage to keep the goods safe during the shipping process. This material helps prevent damage to charged items during loading and unloading operations.

Especially since this material is able to withstand approximately three pounds per square inch of pressure as a limit.

In addition, this material comes with built-in inflation systems and is recyclable. Therefore, it is one of the useful and environmentally friendly materials at the same time compared to other filling materials.

What makes shippers reliant on this material is its effectiveness in protecting the shipment from physical damage as well as moisture and pollution.

All of this allows improving relations between the company and its customers, as their shipments arrive without any problems.

Which enhances the company’s relationship with its customers and increases its reputation in the market and among customers themselves.

This gives it a competitive advantage and greater ability to expand.

The 9 types of dunnage

Goods protection materials are diverse in terms of their nature and composition, and the following are the most important types used:

1. Solid plastics

It is a high-strength plastic that is used to protect high-value goods from damage during the shipping process, knowing that it is one of the expensive dunnage materials.

2. Bubble wrap

This material is used to wrap and protect glass or other materials that may be subject to breakage.

Its use is also very common, as this material can be used more than once as long as the bubbles in it are intact and not damaged.

3. Wood

Wood plans are materials to create barriers between heavy and strong equipment and materials to prevent them from sliding and moving.

4. Air pillows

This method is used to fill voids inside shipping packages and prevent them from sliding and moving, thus protecting them from damage that may occur during shipping operations.

5. Kraft paper

It is a good material for wrapping and protecting goods from damage. It is also inexpensive, environmentally friendly, can be recycled and is commonly used.

6. Foam

One of the most popular materials used in packaging sensitive devices such as electronics, medical equipment and fragile artifacts.

7. Steel

This metal is used as protection for expensive packages, and steel is ideal for holding heavy packages. This is so as not to damage the lighter weight packages.

8. Corrugated paper

It consists of a corrugated layer of cardboard surrounded by two rigid layers, which provides protection for the parcels during transport and handling.

Therefore, it is a popular dunnage material that helps protect against moisture and is a sustainable and environmentally friendly packaging option.

9. Custom dunnage solutions

When none of the above materials fit a package due to its uncommon or multi-piece design, a custom dunnage is designed.

In which a mixture of materials is used that guarantees the safety of the product.

get to know : Reduce losses with the incoming inventory solutions

The importance of dunnage

These materials are considered essential to the success of shipping operations because of their benefits in maintaining the integrity of packages and protecting them from damage.

Here are a number of points explaining the importance of dunnage materials:

1. Shock Reduction

This helps preserve cargo during the shipping process from potential vibrations and shocks during transportation, handling and unloading.

This ensures the safety of parcels and prevents shipments from being damaged.

2. Protect items from water

In the case of shipping parcels by sea, a kind of protective material is placed on the floors of the ships to keep the shipments away from the water and thus protect them from damage caused by the water.

3. Protect items from moisture

Moisture is one of the biggest factors that cause shipment damage, so shipping companies seek to wrap parcels and goods with materials that absorb moisture such as paper and cardboard and prevent damage to them.

4. Fill in the blanks

These materials help keep packages firmly in place, such as using battens or airbags. It protects cargo from movement during transportation and thus maintains its integrity.

5. Reduce costs during the shipping process

By knowing the nature of each product and the protection materials surrounding it, the work team can transport and deliver it safely to the customer.

This reduces the chances of returns or damaged goods, all of which speed up and improve shipments as well.

6. Evenly distribute the weight

This is in the case of transporting large parcels, such as home furniture. These materials help keep the elements in balance during the shipping process.

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There is great importance in calculating the inventory amount in any company, through which they determine whether they have a surplus or a deficit and thus get an idea of ​​what they will do in times of crisis.

The inventory amount varies according to the company’s activity, and in general, whenever the amount of inventory is excessive or less than normal, this poses a risk to the company’s position.

It can cost it more expenses and losses, and in this article we will talk about all the details about the inventory amount and its importance, and we will also show you how to calculate the amount of inventory at the end of the financial period.

Inventory amount definition

An inventory amount is the number of items a company has from the products it operates with that it can identify by doing the inventory in its own way.

The process of determining the amount of inventory helps to know whether the company suffers from a deficit or surplus in its inventory. And thus determines how it can deal in that case.

Understanding Average Inventory

The term average inventory is an important term related to inventory amount.

Average inventory is an estimate of how much of the same inventory a company has during a period.

Through it, it is possible to address cases of fluctuations in inventory balances, as well as avoiding the results of peak seasons.

Average inventory is also a clear indicator of how stable the inventory is in a company, so it is necessary and related to the amount of inventory.

Average inventory also helps companies understand how quickly they can convert their amount of inventory into actual sales.

get to know : Order Management System Solve Your Fulfillment Challenges

How to calculate Inventory amount

There is more than one way to calculate the inventory amount and its value. And in general, calculating the amount of inventory and its value is one of the most important things that benefit the business.

This is because calculating the amount of inventory and its value plays an important role in making decisions in companies. And any errors in its calculation will negatively affect the accounting reports in the new period.

Here are the most important methods for calculating the amount of inventory and knowing its value:

1. FIFO method

It is one of the most popular methods used in calculating the inventory amount and its value.

Through which the calculation is made based on the fact that the inventory that was initially purchased is sold first.

This method is used to calculate the amount of inventory in cases of economic uncertainty.

2. LIFO method

The second most frequently used method of calculating inventory amount and its value is to assume that items purchased last are sold first.

3. Retail method

It is one of the methods used in calculating the inventory amount and its value by which the physical inventory is checked.

In order to use the Retail method in the calculation, you will need some basic metrics, namely:

• Cost of goods available for sale= Beginning inventory + cost of goods.
• Cost-to-retail ratio = Cost ÷ retail price * 100
• Cost of sales = Sales * cost-to-retail ratio

Then you can easily calculate the amount of inventory through the Retail stores method, using the following formula:

• Inventory amount by using Retail method = Cost of goods available for sale – cost of sales.

4. Ending inventory formula

It is one of the simplest and easiest methods used in calculating the amount of inventory, which is done by using the following formula:

• Inventory amount by using ending inventory formula = Beginning inventory + new purchases – cost of goods sold (COGS)

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Inventory management is the backbone of any business, especially e-commerce. Inventory automation is considered as one of the best mechanisms that helps in managing inventory effectively, through which you will be able to anticipate customers. This in addition to reducing the time taken to process orders, which boosts the sales of your business. In this article, we will provide you with all the details about inventory automation, as well as its most important features and impact on your business.

What is inventory automation? 

Inventory automation means the use of modern technologies in inventory management, which reduces human intervention in inventory management.

Thus, the ability to track items in stock, as well as monitor its levels, which helps in stock analysis, and speed in processing orders.

5 automation features are must-have

There are 5 basic features that an inventory automation system can offer you, which will facilitate your business better. Here are the main features:

1. Re-order notification

By inventory automation you will be able to get notifications before your inventory runs out.

Thus, avoid out of stock situations that can incur a huge loss to your customers, by giving you a reorder notice.

With it, you will be able to recognize when your inventory is nearing the end, and thus remind you to refill the inventory.

Also, this system will help you in taking an orderly approach to purchasing and storing goods in your warehouse, thus avoiding situations of overstocking.

It will also allow the automation of the inventory, in addition to its full control with the ability to determine the level of re-order of the items in your warehouse.

2. Marketplace automation

Inventory automation will help you Order Management in the best possible way, as well as process all purchase orders, sales and invoices.

All of this will help you in automating your market, being able to better deal with customers and their orders.

And if you are thinking of expanding your business and owning an online store, inventory automation will help you expand your business effectively.

This is done by automatically adding items to your inventory, and automatically updating inventory statuses.

Also, the automated system will help you update shipping rates in real time, thus the most cost-effective shipping option for your business.

3. Reporting

Inventory automation will give you access to real-time reports, thus helping you formulate your business strategy in the best possible way.

Reports help a business in charting and evaluating accurate trends in the company’s performance, and they are the basis for any business decision.

Through this system, you will be able to obtain accurate reports, thus reducing the chances of losing important information, and greatly reducing errors.

4. Barcode scanning

A barcode scanner is an electronic device that scans the code for an item, then records all its details in your inventory software.

It is a form of inventory automation with which you can improve efficiency, reduce errors, and save a lot of time.

The feature of barcode scanners is especially important for businesses with growing demands, as it will help them process items better.

5. SKU generator

The SKU generator is a tool that helps you manage the numbers and codes of the products you have in your store, which helps you place stock items as you specify.

It is an important form of inventory automation, which will help you organize your inventory effectively.

How does automation in inventory management impact your business?

Inventory automation can help you in your business effectively, as it will enable you to fulfill the Demand management of your customers in the best possible way.

This is in addition to the possibility of anticipating and thus meeting the various interests of customers, and providing the best management of your inventory.

Thus, it helps maintain the effectiveness of your daily operations, by improving the speed of work and accuracy in orders.

Inventory automation also helps take over a lot of tasks and thus helps your team focus on growth strategies for your business.

This will reflect positively on improving the quality of your work and products, which will lead to an increase in your profits.

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Recently, the so-called multi channel selling has spread, and this has coincided with the phenomenon of online shopping and its widespread spread. As many commercial stores are now selling their products via the Internet in addition to selling through the store or the main branch, due to the advantage of online shopping in saving time and effort for the customer.

With the possibility of comparing the prices of one product through other electronic stores. In addition to the ability to know the opinions and comments of previous customers on the product you want to buy. But many of these stores operate their branches and online stores completely separately from each other. In this article we will give you all the details about multi channel selling and how Diggipacks can help you.

What is multi channel selling

It is a system of selling through several platforms, which is to sell your products via the Internet in addition to selling them through the main branches.

But the branches are managed completely separate from the site, so that orders and customer data are not linked to each other.

And the more of these channels, the higher the amount of profit. This type of sale includes at least one physical store, in addition to at least one online store as well.

Statistics have shown that this method increases the percentage of sales by approximately 190% of stores that are satisfied with one channel.

get to know: What is Partial truckload shipping and how does it work?

Choosing the right sales channel

The first thing you should consider while using multi channel selling to grow your sales is to find the right sales channels that are right for you.

You can choose the right sales channels by asking yourself where do your customers shop? And which niche is expected to generate the most new sales for you?

Thus, you can easily determine the new sales channels that you will rely on, and in the beginning choose one or two channels to focus on.

Selling on Multiple sales channel

There are many reasons that prompted traders to sell through multi channel selling, due to their desire to increase productivity and thus obtain a greater amount of net profit.

Also, many merchants want to increase the quantity of the product in the market through multi channel selling.

This is in addition to improving the customer’s experience with the product, as well as the expansion of the customer base.

And there are many advantages offered by selling through multi channel selling, the most important of which are:

• Improving client expectations, and working to gain his trust and satisfaction. And that is one of the main advantages of multi channel selling.
• Providing a unified identity for the product through all channels, which helps the customer to access it from anywhere.
• Standardization of prices and promotions across all sales channels.
• Collect customer information for use in the marketing process, and target each category of customers when marketing the product they need.
• Enhancing productivity, increasing sales, and achieving greater profit, in addition to a greater presence in new sales channels.

All of these advantages motivate traders to go towards multi-channel selling and take advantage of these wonderful advantages.

Managing your multi channel selling business

To be able to benefit from selling through multiple sales channels, you need to have good management of those channels.

Especially since one of the biggest problems with multi channel selling is that you will need to manage inventory in more than one channel.

This means that you will spend a significant amount of time monitoring stock levels, and other tasks.

To solve this problem of multi channel selling, you will need to have a good management of all of these channels.

And you can easily do this by setting up a method for integrating your entire inventory into one platform.

This will make it easier for you to manage all those channels, thus reducing errors and improving expectations better.

How can diggipacks help you in multi channel selling?

Diggipacks is one of the best logistic services companies, based on the latest technology. Through its services, you will be able to reduce the cost of shipping and provide the best delivery services to your customers.

As Digipacks has systems connected to all shipping logistics companies in the region, including more than 30 distinct shipping companies.

In terms of multi channel selling, diggipacks provides all the linking tools by programming plugins and modules for most of the e-commerce sites.

All shipment distribution through diggipacks is done using artificial intelligence, as well as selecting the best performance suitable for your business to increase efficiency and improve customer reputation in the market.

In addition to the distinctive storage services suitable for the nature of your business, Diggipacks owns huge spaces in the Kingdom of Saudi Arabia.

Diggipacks will also provide you with all the technologies that will enable you to monitor your inventory, manage inventory and returns.

As well as services for customs clearance of products and preparing them for distribution directly.

And all the shipping and other logistics services offered by Diggipacks at reasonable prices and price plans to suit all budgets, thus ensuring the best quality of work at the most appropriate prices possible.

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