July 18 2019

The six most common barriers to success for dairy distributors and - and how these can be overcome with an effective dairy delivery management solution.

You’re likely to have been in the dairy distribution business for some time; you know what it takes to be successful and you understand the challenges you’re up against. You’ll have witnessed the ever-increasing demands of customers and you know that it’s easier than ever for your customers to change suppliers if they are not entirely satisfied; competition is stronger than ever and it’s imperative that your business continues to stay one step ahead.

There’s no denying, it’s a tough time for dairies and there are new challenges each day, however as a successful dairy distribution business, you will have also identified the opportunity for growth.

But before you can grow your business and further maximise your sales, you need to address any barriers within your business that may hinder your success. Here are six of the most common barriers to success for dairy businesses:

1. Processes are manual, paper-based and disjointed with high levels of duplication and even higher risk of errors; and/or your existing mobile delivery software and mobile devices are outdated, slow and cumbersome to operate and maintain.

2. Mobile worker location and delivery progress cannot be effectively monitored and adjustments to routes are complicated with limited or no visibility of completed orders.

3. Lack of real-time communication and data exchange between mobile workers and office staff means that completed orders cannot be invoiced until mobile workers return to the depot at the end of the day, increasing time between delivery, invoicing and receiving payment from your customers.

4. Inventory control is limited with no ability to leverage historical order and delivery trends to manage production based on demand and effectively control van stock.

5. Mobile workers are unable to access up-to-date customer information remotely, limiting their ability to sell effectively and negatively affecting customer service.

6. High levels of spoilage due to poor inventory control mechanisms and lack of reporting systems to identify stock variance and source of spoilage.

All of these challenges could quickly be things of the past with the implementation of the powerful delivery management solution. The solution RouteMagic by Mobile Enterprise Systems creates an operational hub for dairy businesses, connecting office and mobile workers in real-time to ensure efficient execution of front and back office operations.

The solution also provides functionality to manage and control the following:

- Mix and match pricing

- Spoilage/shrink (returns) management

- Real-time pre-sell and delivery applications

- Electronic proof of delivery

- Paperless settlement transactions

- Forecasting and inventory management at store/SKU level

- Survey management and data collection

- Suggested orders

- GPS visual route tracking and performance

- Drop and sold calculations

- Show average sales for each account

- Set up a pre-invoice before delivery

- Multiple stops at one location (i.e. hospitals, universities)

- Tiered pricing based on sold amount

- Buy-backs

Dairies using our delivery management solution] have benefitted from greater visibility and connectivity, faster response to customer needs, improved inventory management, reduced errors, lower operating costs and increased sales.

One of our existing customers comments, “Our customer SLAs are aggressive; for instance, we take orders right up to midnight for next day delivery; in order to service that commitment, we needed the best logistics systems available. The management information provided by the Mobile Enterprise Systems solution has helped us to identify where potential efficiencies can be made to reduce operational costs, minimise fuel consumption and maximise our drivers’ time.”

“With the schedule vs. progress view of our business, we know exactly where our drivers and vehicles are, allowing us to proactively manage and quickly respond to customer delivery queries. We can also monitor routes taken and time spent at each customer site so we get a true view of customer and fleet profitability”.

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