Table of Contents
How Ecommerce Brands Can Use Automated Carrier Allocation to Scale Up
Introduction
Ecommerce businesses thrive with smart order processing and carrier automation. They can fulfill tons of orders, maintain accuracy using powerful software support, and offer customer satisfaction. When enterprises manually ship and manage orders, it takes more time and operational costs to get work done. Plus, it becomes a tedious task to handle bulk orders without automated systems in warehouse operations. This indicates poor inventory management and lack of advanced systems in place.
Automated carrier allocation is an advanced technology for brands to handle orders quickly, assign carriers based on parameters, and ensure less time is taken to attain operational efficiency. Not to mention the ease of converting manual workload to revenue-generating tasks in minutes.
Related read: Best Shipping Carriers: How to Choose the Best Carrier?
What is Automated Carrier Allocation?
Automated carrier allocation refers to the self-operating management system that selects carriers based on predetermined rules and parameters for transporting parcels from point A to point B.
With carrier allocation software, ecommerce businesses can assign a shipping partner based on pincode serviceability, package weight, size, maximum intake of parcels for transportation, and past performance. This can increase customer satisfaction levels, operational excellence, and allow enterprises to take significant leaps in their supply chain operations.
Related read: Best 15 eCommerce Shipping Solution Software in 2025
Here are a few parameters that are supported by the software:
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Cost-effectiveness - Ecommerce businesses can prioritize the delivery partner with the best competitive rate to suit their financial limits. This allows them to slash operational costs that come unnecessarily with more workforce.
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SLA Compliance - Ecommerce businesses can monitor the percentage of SLA (Service-level Agreement) breaches and choose the carrier that consistently meets deadlines.
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Turnaround Time (TAT) - You can choose a carrier that has the fastest average time to move from “pickup” to “out for delivery” to ensure faster order processing.
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RTO Rate - Minimize the possibilities of failed deliveries with predictive models and select carriers with low RTO rates.
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NDR on failed shipments - Prioritize the couriers with high success rates after tracking the percentage of failed deliveries of all couriers.
Why does Manual Carrier Selection fail at Scale?
Selecting delivery services providers per order or for numerous parcels going out can be a hassle when it is manually done. It can take time to go through each carrier and manage orders, leading to inconsistent decision-making and human errors. Also, leveraging historical data and past performances can be challenging during manual carrier selection.
Key hallenging during manual carrier selection
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Lack of Research - Not doing enough research on potential carriers is one of the major reasons for the failure of carrier selection, leading to poor operational efficiency in the fulfillment process.
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Going for low-cost options - Focusing only on low-cost carriers is a big mistake because they may not offer reliable services. Some may not have enough expertise in inventory management or reverse logistics.
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Not considering Carrier Specialization - Manual selection of carriers can often lead to ignorance where brands might choose carriers that won’t align with their needs.
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Neglecting SLAs - Service level agreements point out carrier performance metrics and guarantees. By neglecting them, you can end up choosing the wrong carriers that can bring down the customer experience.
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Not considering customer feedback - Manual selection of carriers requires word of mouth from peers and expert feedback. Ecommerce businesses often fail at carrier selection without customer references and feedback.
Key Benefits of Automated Carrier Allocation for E-commerce
Carrier Allocation is a crucial element of the logistics automation process. By automatically allocating carriers, ecommerce businesses save time and offer the ultimate customer satisfaction. Unlike manual selection, it becomes easy to assign orders based on serviceability and carrier capacity. Here are a few benefits of automated carrier allocation in the shipping process -
1. Reduce Costs - By allocating carriers, ecommerce businesses small and big can save money and invest it for other business requirements such as inventory management.
2. Eliminate errors - Automation eliminates errors that are otherwise made by humans and during manual operations and last-mile deliveries. Enterprises can automate repetitive tasks and leave no room for mistakes.
3. Save Time - You can process bulk orders quickly, by assigning carriers accurately and finding the best delivery routes. A route-optimzation software and a carrier allocation system can speed up the entire logistics process and fulfill customer demands.
4. Better Customer experience - Customers can receive their orders in time, relax and businesses can rule out any possible delays in last-mile deliveries, ensuring the best service quality.
5. Analyze data quickly - Carrier allocation software stores important information about the carrier, purchase history, and the number of orders delivered. By analyzing performances, brands can gain momentum and level-up customer satisfaction. They can maintain service quality and plan timely deliveries.
How E-commerce Businesses Can Leverage Automated Carrier Allocation for Faster & Smarter Deliveries?
An efficient carrier allocation system can take a significant load off your business, manage inventory, improve customer satisfaction and optimize warehouse operations. Shipping orders in bulk can be a tedious process unless you have an automated carrier allocation system in place to analyze sales volumes. Here are a few ways you can use the carrier allocation software to ease your supply chain, enhance customer loyalty and take your inventory management to the next level -
1. Optimize Delivery Costs
Manual processing of shipments involves more time and labor costs making it difficult for businesses to handle bulk orders and fulfill customer demands. To change this, enterprises have shifted to automated carrier allocation systems that get the job done faster and more accurately. It can save tons of money and labor costs by reducing teamwork and coordination, allowing brands to quickly attain customer satisfaction.
2. Handle Bulk Orders Efficiently
Big and medium brands handle hundreds to thousands of orders per day. It can get out of hand with just human efforts and manual resources to manage numerous packages. Brands can face real difficulties in inventory management as well making inventory level tracking and warehouse efficiency a high priority. For faster order fulfillment and cost efficiency, brands have turned to auto carrier allocation software with pre-defined rules and automated storage facilitation.
3. Improve Delivery Speed
Ensuring timely deliveries is an absolute must if you want to impact consumer behavior positively. It becomes easy to handle last-mile deliveries and customer demands when you can auto-allocate major shipping carriers. The route-optimization software can intelligently select the ideal carrier for every shipment based on capacity, timeframes, and serviceability. It offers real-time data on traffic conditions and provides the best delivery routes by considering distance. All-in-all it allows ecommerce platforms to increase last-mile delivery speed and improve customer satisfaction.
4. Select Carriers in Real-time
A carrier allocation software helps you streamline operations and helps save operating costs. It uses real-time tracking systems and machine learning to determine the availability, transit times, performance metrics, and last-mile delivery details of a carrier in real time. It can help you identify the most suitable carrier and assign them for shipments. This is done and displayed on a single platform for users to see.
5. Multi-channel Integration
Carrier allocation management systems use Application Programming Interfaces (APIs) to connect with the carrier. Leveraging technology such as this can allow ecommerce businesses to access real-time delivery rates, and tracking data, and pick the most suitable carrier. Multi-channel integration is useful for brands with customers like online shopping and from physical stores. Integrating multiple channels with the software allows you to connect with different marketplaces and retailers, making it viable for customers to have more purchase and shipping options.
6. Take Advantage of Data-driven Insights
The carrier recommendation software uses machine learning to help brands fetch data-driven insights and look into consumer behaviour. It helps them analyze demand predictions and improve last-mile delivery performances for ultimate customer satisfaction. It gives ecommerce platforms total control of carrier selection and allows you to change rules for better route optimization, thereby improving customer experiences and business growth. A carrier allocation software can transform businesses with data-driven decision making for timely deliveries.
Optimize Your Deliveries with ClickPost’s Automated Carrier Allocation – Get Started Today!
ClickPost is a logistics intelligence platform that offers an automated carrier allocation system to simplify the fulfilment process. It allows ecommerce platforms to reduce RTO rates for cash on delivery orders and helps them process orders faster and more efficiently. The logistics provider is pre-integrated with 500+ carriers, allowing businesses to go live with their chosen carrier in 24 hours.
To drive carrier allocation, it offers rule-based filters that allow you to assign carriers based on several parameters. With machine learning, ClickPost helps you distribute the load evenly across suitable carriers, reduce delays and increase customer retention rates. For a deeper understanding of the platform and its automation technologies, you can contact their team directly or visit their website.
Conclusion
The evergrowing demands of e-commerce customers are making brands take calculated steps in shipping and supply chain management. For brands, it is crucial to deliver the best shipping experience, high quality services, and enhance customer satisfaction. Using scalable carrier allocation software and leveraging technology can help manage bulk orders, automate the fulfillment process and take your business forward. It is a must for ecommerce businesses expecting satisfying customer experiences and faster inventory management.