The importance of proof of delivery to the manufacturing and distribution industry
Digital transformation affects all business areas, some more than others. And the manufacturing and distribution industry is no exception.
A recent survey conducted by U.S.-based Macola asked professionals from manufacturing and distribution companies to identify what they consider the biggest driver of change. Over 70% named emerging technology and IT innovations.
This same survey revealed that 77% of manufacturers who had automated their major business processes earned more on average than those who had not. So where do they start?
A need for visibility and harmonization of data in the manufacturing industry
Given that product delivery is the number one activity in this type of business, the companies involved know they need to look at proof of delivery, the role it plays, and how to make it as effective as possible.
This is especially true since more progress appears to be needed along those lines. According to a survey by Zetes, 62% of the manufacturers surveyed are not capable of mitigating incomplete or late shipments. Moreover, 67% are struggling to share key information between departments. So it seems that they need to harmonize their data, especially as the supply chain becomes increasingly complex. This is a role that optimized proof of delivery can flawlessly assume!
The role of proof of delivery in the manufacturing and distribution industry
Besides speeding up billing, manufacturers have other crucial reasons for maximizing the cost-effectiveness of their proof of delivery process.
Here are three reasons why optimized proof of delivery is key:
- Better visibility of their inventory: By using digital delivery orders, companies have real-time data on their products and stock. With an accurate inventory of the products, they can anticipate demand and avoid sending out more products than needed. If they have too much stock in the warehouse, they incur needless costs. On the other hand, if they have too little stock, it can undermine their liquidity position and their relationship with customers.
- Meeting customer needs: These days, it’s the customers themselves who are demanding improvements in delivery processes. Whether in terms of timeline, logistics, or for specific, personalized orders, companies must prepare properly and organize their deliveries. With digital delivery orders, the delivery person has all requests from each customer on a tablet. If there’s a problem with the delivery, the customer service department can be notified in real time so that they can quickly contact the customer.
- Addressing challenges related to defective products: If delivery orders are well optimized, they play a role that goes beyond customer service. Specific departments can be directly notified through them. For example, if a product has a small manufacturing defect, it is important for stakeholders in the supply chain to be aware of the situation in order to resolve it before it becomes a widespread problem.
All of these benefits from optimizing proof of delivery help meet the same goal: enhancing the customer relationship and experience. Based on a study by Salesforce, 71% of manufacturers say they’ve become more focused on creating deeper customer relationships. By optimizing proof of delivery, they’re in a good position to continue down that path!
Are you interested in optimizing your proof of delivery process? Feel free to contact one of our advisors.