Local Logistics Company Scales Its Fleet With Kosmo

Company Introduction

The featured company is a prominent last-mile logistics service based in Singapore, specializing in catering to various industries such as food, flowers, medicines, and parcel deliveries. Employing over 40 full-time drivers and additional freelancers for ad-hoc projects, the company is committed to reducing its environmental impact by transitioning its fleet to electric vehicles (EVs). One of the key strategies involves optimizing routes to enhance operational efficiency.

Problems

1. Order Processing: Before adopting Kosmo, the company faced challenges in receiving orders efficiently. Businesses shared order details via Excel files, leading to a manual and error-prone process.
2. Lack of Visibility: The absence of real-time visibility into delivery status and estimated times of arrival (ETAs) resulted in a surge of customer support tickets. Inefficient communication plagued interactions between the company, its customers, and the end recipients.
3. Manual Route Creation: The manual creation of delivery routes consumed substantial hours of the logistics team's time and often resulted in inefficient routes.
4. Inefficient Communication with Drivers: Order details were sent to drivers via WhatsApp, leading to a lack of tracking capabilities and inefficient communication. The team had no real-time visibility into driver locations, relying on manual updates from drivers. Also the Proof Of Delivery was shared by drivers via Whatsapp, leading to poor traceability in case of post-delivery issues.
5. Manual Driver Pay Calculation: Calculating driver pay was a manual and error-prone process, leading to hours of work for the finance team, errors and ultimately to dissatisfaction among drivers.

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Solutions

To address these challenges, the company implemented Kosmo, a comprehensive delivery management platform. The solutions provided by Kosmo include:

Order Portal: With Kosmo, the logistics operator can now create customized portals for each customer to facilitate seamless order uploads. Orders flow automatically to the logistics company's portal with customer tags for easy management.

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Visibility and Notifications: The Order Portal and Kosmo's notification solution offer real-time visibility into deliveries for the businesses and their customers, reducing customer support tickets. Customized updates, including delivery ETAs and tracking pages, enhance transparency.

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Automated Route Creation: Kosmo's route creation feature enables the logistics team to generate optimized routes with just a few clicks. Constraints such as maximum stops per route and delivery areas are considered, ensuring on-time deliveries.

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Driver App: Deliveries are assigned through the Kosmo driver app, facilitating streamlined communication. The app allows drivers to receive instructions, navigate, communicate with the team and customers, update delivery status, and upload proof of delivery (POD).

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Automated Driver Payroll: Kosmo allows easy configuration of driver pay, offering team-level customization. Drivers can view earnings per delivery and track their total earnings in their wallets. The team can then easily export all drivers payslips with just one click and proceed to the payment.

Results

The implementation of Kosmo yielded significant benefits for the logistics operator:

Scalability: Automation and time savings enabled the company to scale its operations, onboarding four additional customers that were previously challenging to serve.

Cost Reduction and Efficiency: Optimized route creation maximized drivers' utilization, leading to reduced average delivery costs and improved on-time delivery rates.

Customers and Drivers Satisfaction: Both customers and drivers experienced increased satisfaction, as evidenced by positive reviews from both sides.

Next Steps

Following the initial onboarding, the logistics business and Kosmo continue to collaborate closely. Their shared goal is to identify new areas for improvement and enhance the product further, simplifying logistics team tasks and contributing to the overall success of the last-mile delivery service. The ongoing collaboration reflects a commitment to continuous improvement and innovation in the evolving landscape of last-mile logistics.