What is Geofencing? How Can It Improve Last Mile Deliveries?

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What is Geofencing? How Can It Improve Last Mile
Deliveries?
Optimizing last-mile deliveries is one of the
challenges for delivery businesses. Last-mile
deliveries are regarded as costly since they make
up 41 of supply chain expenses and 53 of
shipping costs. Businesses that cannot optimize
their last mile do not survive in the long
run. This is where the concept of geofencing
comes in. In this blog, well uncover the
concept of geofencing, why it's important in
last-mile deliveries, and how it can help your
business. Table of Contents What is geofencing?
What is last-mile delivery? What is geofencing in
delivery management? Challenges in last-mile
deliveries without geofencing Features of
geofencing in delivery management software
Benefits of implementing geofencing into a
business Leveraging TrakOp for geofencing
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• What is geofencing?
• Geofencing is drawing a virtual boundary area for
  the real world on a computer that uses location
  data to provide information for monitoring the
  movement of a person into and out of a
  particular area. It triggers activity when a
  device enters the defined virtual perimeter
  around a geographical location. The triggers are
  sent via WiFi, GPS, cellular, or RFID tags.
• What is last-mile delivery?
• Last-mile delivery is the final leg of
  deliveries, where the product is delivered to the
  final consumer. The final or end consumers
  usually include homes and offices. Last-mile
  delivery is one of the most expensive parts of
  business operations, making it essential to
  streamline it.
• Optimizing last-mile deliveries can help minimize
  fuel consumption and improve customer
  satisfaction.
• Role last-mile delivery management in delivery
  businesses
• It automates scheduling and optimizes routes,
  reducing delivery turnaround time and improving
  delivery efficiency.
• Using technologies like geofencing can help you
  track and monitor deliveries in real time.
• Optimizing last-mile deliveries ensures accurate
  and on-time deliveries, increasing customer
  satisfaction rates.
• Streamlined and optimized last-mile deliveries
  reduce logistical costs, adding to business
  profits.
• What is geofencing in delivery management?
• Geofencing in delivery management refers to
  defining serviceable areas and routes on the
  system, assigning routes to the drivers, and
  tracking deliveries through GPS. Geofencing uses
  geographical coordinates (latitudes and
  longitudes) for delivery tracking. It can improve
  the efficiency and productivity of last-mile
  deliveries. Delivery businesses use geofencing to
  track and manage their multi-stop deliveries and
  multiple drivers.
• Challenges in last-mile deliveries without
  geofencing
• Last-mile deliveries play an important role in
  improving your customer experience for
  businesses. Efficient last-mile deliveries also
  enhance financial performance as they assist in
  reducing delivery costs. Major challenges you
  might face without geofencing are
• Higher delivery costs

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Poor address quality It is difficult to get the
precise location without a geofencing tool.
Approximately 65 of failed deliveries are due
to poor address quality, making it difficult to
locate the accurate address. Manual address
management can lead to manual errors that result
in failed or canceled deliveries. Your drivers
can end up at the wrong address, leading to
delays in order delivery and hampered customer
satisfaction. Lack of transparency Today,
customers want frequent order status updates and
to track their orders. They appreciate
transparency and want to be up-to-date concerning
their orders. Lack of transparency between
businesses and their customers impacts customer
satisfaction. Inefficient delivery planning It
is easier to plan efficient deliveries with
precise addresses. Manual delivery planning is
prone to human errors and can lead to delivering
to the wrong address, resulting in lower customer
satisfaction rates and loyalty. Features of
geofencing in delivery management
software Geofencing offers various features that
help you plan efficient deliveries, track drivers
and orders, and improve address quality and
customer satisfaction. Geofencing fetches
customer addresses based on the geo-coordinates,
providing their precise location. The features of
geofencing in delivery management software
are Live GPS tracking Geofencing includes GPS
(Global Position System) tracking, a space-based
radio navigation system that provides accurate
positioning and location of the driver, velocity,
and time. It enables real-time delivery tracking
and monitoring of drivers moving. 96 of survey
participants said they track their orders online,
and 43 said they track deliveries
daily. Calculates ETA Customers need accurate
time of arrival, especially for products with
shorter shelf lives. Access to the delivery
location and defining the virtual boundary help
you know the exact time the driver will deliver
the order. The ETA is then shared with the
customers, enabling your customers to get ready
to receive their orders. Define serviceable
area Geofencing can help you define your
serviceable areas. You can draw the area on the
map in the delivery management software.
Customers placing orders outside the serviceable
areas will
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let them know that you do not serve in that area.
The system also fetches their addresses based on
the longitude and latitude, providing a precise
delivery location. Auto optimization The
geofencing in delivery software helps you define
deliverable areas and create routes for
multi-stop and multiple routes. The system
fetches addresses based on the customers
longitude and latitude coordinates, which is very
precise. Then the route optimization features of
the delivery software sequences and optimizes
delivery routes to make timely and accurate
deliveries. Live driver tracking The integrated
GPS (Global Positioning System) feature helps you
track your drivers in real time. The delivery
map in the delivery management software enables
you to monitor the successful deliveries made by
a particular driver. This lets you access your
drivers performance and create strategies to
improve delivery efficiency. Benefits of
implementing geofencing into a business Geofencing
is one of the important features in delivery
software that contributes to making accurate and
timely deliveries. Accelerating deliveries can
help you improve delivery efficiency,
productivity, and customer satisfaction. The
benefits of implementing geofencing into a
business are Reduced delivery costs Defining
your preferred delivery area prevents customers
from coming from outside that area. This helps
you reduce delivery turnarounds and fuel
consumption, minimizing delivery costs. Other
features of delivery software, like route
optimization reduce fuel consumption and reduce
delivery costs. Real-time delivery tracking and
geofencing can prevent unauthorized vehicle
movement, saving money. Enhanced customer
satisfaction Customers can only place orders if
they are in the defined serviceable area,
preventing canceled orders and fostering
transparency. Timely and accurate deliveries also
improve the customer experience. Providing ETA
fosters transparency, which satisfies their
customers regarding their orders. Increased
efficiency Geofencing defines your deliverable
area and prevents customers from outside the area
from placing orders. Our system also picks up
the geo-coordinates of these customers. You can
access the demand based on which you can decide
on scaling and expanding the serviceable
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area of your business. This can improve business
efficiency and productivity and ultimately
increase your profits and customer
base. Leveraging TrakOp for geofencing TrakOp is
a SaaS location-based delivery software that
offers geofencing. This feature lets you define
serviceable areas and simplify delivery planning
and route optimization. It provides live GPS
tracking, enables ETA calculation, defines
serviceable areas, auto-route optimization, and
live driver tracking. Book a free demo to see how
geofencing in TrakOp works.