Drive down costs with mobile electronic proof of delivery

There are an estimated 200 000 delivery vehicles operating in the Gauteng area alone. Combining that number of vehicles with the fact that most third-party logistics and courier businesses still operate paper-based delivery processes, Mark Lilje, MD of RangeGate, says one local business`s monthly cost reduction of R100 000 is a clear indication that companies in the sector stand to differentiate themselves more distinctly from their competitors through mobile electronic proof-of-delivery systems, and to make the tough market more palatable.

Third-party logistics and courier companies operate in a cutthroat environment and are constantly seeking to reduce operational costs, improve efficiencies and improve their service to customers.

At the same time, electronic proof of delivery has been elevated to the next level, which is generating a proof of delivery at the point of transaction, by general packet radio service (GPRS). This has given system developers the technology they need to generate documentation at the point of transaction.

Mobile terminals have also come into their own recently - with colour screens, larger screens displaying more information, and better throughput, they are easier to use. In addition, the software solutions that tie all of these together and give users the functionality they require, have been developed and tested with these technologies, so the timing is simply right.

There are a number of benefits to using a mobile electronic proof-of-delivery system. Strategic business benefits include gaining new customers due to the improved service, reduced operational costs and better resource management with more efficient business as a result.

Other benefits include fewer phone calls to drivers, reducing costs and freeing up employees to perform other tasks in the business. Debtors` days are reduced because errors are corrected at the point of contact, ensuring invoices are not pushed out 30 days, at minimum. Logistics businesses gain flexibility, allowing them to offer better service to customers. This is achieved through real-time route and parcel collection, and delivery updates without the need for a phone call to a vehicle driver. Systems such as this perform cash management and driver debriefing times are slashed as systems will perform most of this task through their reporting features.

There are other methods of employing mobile electronic proof-of-delivery systems, particularly in an anti-crime role. Due to the GPRS technology, if a driver is hijacked, the system can send a message to a controller who can alert the police, giving them full details on the exact location of the vehicle, its route and cargo, as well as driver details. That would eliminate the need for drivers to hope they retain their cellphones in the event of a hijacking, or find a phone shortly thereafter.

In a recent case reported in Independent Online, a cellphone call from a hijacked driver alerted the police to his predicament and resulted in three arrests and the rescue of three deliverymen.

It is that kind of swift response, and in this case the driver was lucky to be left with his cellphone, that results in reduced loss of equipment and cargo, and saves lives.

Besides that, quick-responding GPRS technology, coupled with the right software, leads to happier customers. The current modus operandi of the logistics sector sees a recording made of trucks leaving the depot, which can be updated to a Web site that customers can access to learn the status of their parcel or delivery. Between the depot in one town and that in another, the truck is lost in the ether and customers and operators can receive no further status updates. If information is to be gathered, a phone call must be made to the driver.

With GPRS technology, the current position of the truck can be established by a mobile electronic proof-of-delivery system and automatically updated to a Web site, along with automatic updates being sent to goods recipients, informing them of the progress of the vehicle. In addition, this allows vehicles arriving late to automatically update the recipients and inform any other delivery points en route that the vehicle is running late. This also facilitates route planning and allows swift, "on-the-fly" changes to be made to delivery routes.

The mobile capability of these systems also means that delivery and collection verification can be obtained in a number of ways, making it more efficient than traditional paper systems. At the one extreme, a photograph can be taken and fingerprint identification performed, and at the other, the same old signature recorded electronically.

Since these systems have become available to logistics customers, they have been met with significant interest. Companies in this sector are finding that these benefits are tangible and immediate, and have a positive effect on the bottom line.