Santa Tracking: Geographic Information Systems (GIS) Technology Conquering the Holiday Delivery Dilemma
As the holiday season approaches, fleet managers and logistics companies are gearing up for a busy period, with an expected surge in online shopping and parcel deliveries. According to industry reports, online Christmas shopping is predicted to grow by 14% this year, reaching approximately £23.76 billion. This growth is part of a dramatic shift in shopping habits, with 20% of non-food sales now being made online.
To meet this growing demand, companies are implementing Geographic Information System (GIS) solutions to optimize their operations. GIS mapping and analytical capabilities can improve shipping times and optimize routes for transport and logistics companies, leading to savings of up to 30% in operational expenses due to reduced mileage, overtime, and routing planning time.
The benefits of GIS in logistics and delivery optimization are numerous. Optimized routing takes into account vehicle capabilities, driver specialties, changing street network restrictions, and customer time windows. Some GIS solutions provide customized real-time feeds for company executives, dispatchers, and customer representatives, helping to identify potential issues and provide early warnings about delivery delays.
One example of a large courier company using these advanced GIS solutions is FedEx. They use real-time location information for vehicles and geo-fences to manage delivery times, ensuring efficient and timely deliveries, especially during peak seasons like Christmas.
The increased use of delivery vehicles on the road is also evident, with van registrations increasing by almost 17% this year. There are now around 40,000 delivery drivers, two-thirds more than there were ten years ago. To cope with this increased demand, companies like the Royal Mail are recruiting the same number of staff to help distribute the post over the festive period.
However, the increased demand also puts logistics companies under pressure to deliver orders efficiently. Customer expectations for delivery speed are increasing, and companies must balance this with maintaining quality customer service. The supply chain is under more pressure than ever, with the industry expected to send out 20% more parcels in the final three months of the year compared to the same period last year.
The mileage savings from optimized routing can also help reduce a company's carbon footprint, advancing green credentials and meeting government regulations. As the world becomes more environmentally conscious, the use of GIS solutions in logistics and delivery optimization is set to become even more important.
In conclusion, GIS solutions are playing a crucial role in helping logistics companies overcome traditional hurdles and reduce the time from online order to delivery, especially during peak seasons like Christmas. As online shopping continues to grow, the use of these advanced technologies is set to become even more prevalent in the industry.
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