Calling Sms Alerts
Calling Sms Alerts
SMS and Logistics
This close relationship with technology has only been increased through the explosion in home delivery that's resulted from the rise of Internet retail. The new demands of a consumer audience looking for real time information and short delivery windows has resulted in a whole new set of logistics challenges.
Logistics in the mobile mix
These changes are currently most apparent in the mobile sphere. Logistics companies have long been adopters of specialist mobile devices for their delivery staff, whilst companies such as FedEx have even developed smartphone applications (apps) to enable consumers to track parcel delivery.
However, specialist devices and high-end consumer solutions such as apps and the mobile web have significant issues.
The cost of proprietary devices
In the case of specialist devices these issues are immediately apparent. The cost and complexity of maintaining a proprietary fleet of mobile devices is a massive issue. As well as the initial purchase price of a device there is an ongoing cost associated with supporting and maintaining these units. In addition, with a proprietary device each and every user will require specialist training to use the service effectively – a costly and time consuming requirement.
The limitations of apps and the mobile web: ubiquity and penetration
On the other hand, the focus that many companies have developed on mobile web or smartphone app solutions also has its limitations. Rich mobile functionality is unarguably a powerful tool for logistics businesses looking to interface with consumers, but at the same time it intrinsically limits the potential marketplace for any such service.
The issue for smartphone tools lies in the relatively small penetration of app- and internet-enabled smartphones, which is still only around 30% in developed markets such as Europe and US (NPD, 2010). This means that, even in the most advanced markets, more than two thirds of consumers still cannot access rich mobile services on their primary handset.
When you combine this with the relatively low reach of the 3G coverage that enables mobile internet and application access, it is clear that rich mobile services are effectively limited in the extent to which they can reach the broadest audiences.
Mobile alternatives
The answer to this issue lies in a more established mobile technology – SMS. SMS is effectively ubiquitous: every handset is SMS enabled and the vast majority of users understand and know how to use it. Moreover, the GSM network coverage that supports SMS is near ubiquitous on a global basis.
One of the most important benefits of SMS is its incredible flexibility. Despite being a relatively simple messaging format, the huge range of SMS services on offer show that it can be applied in a massive variety of use cases. This holds true in the logistics space as it does in other sectors, with SMS being capable of enabling a broad selection of functionality from any device, anywhere.
SMS in logistics
There are a huge range of potential use cases for SMS in the logistics industry:
‘Last mile' logistics
One area in which SMS is already being used by some logistics businesses is in interface with consumers around ‘last mile' logistics. Many deliveries to private addresses fail because the recipient is not at home, incurring an additional and unnecessary cost on the logistics provider. Using two-way SMS interaction, logistics companies can communicate with delivery recipients to co-ordinate a convenient time for both parties or to register an alternative delivery address, such as the workplace. In this way, SMS can be used to remove the issue of failed deliveries and enables a personalised delivery solution – beneficial for both the logistics company as well as for the consumer.
Consumer alerting
One area in which SMS is already being used by some logistics businesses is in consumer alerting. As home delivery becomes an increasingly popular option, the need to offer consumers more detailed delivery information is becoming ever more important. SMS can enable companies to keep their customers updated with real time information about their delivery via a cost effective and ubiquitous channel.
Two way SMS
A further development of SMS alerting is two way communication between an enterprise and its customers. To use the delivery alerts example discussed above, this two way communication could enable a consumer to reply to their delivery alert to request a different delivery time, without the need to call a contact centre. In this way, customer service is enhanced whilst at the same time reducing the incidence of failed deliveries and their associated costs.
Staff communications
SMS can be a powerful staff communications tool and one that is highly effective for a business with a geographically distributed employee base. This communication can take many forms, from enabling field staff to register their activity without the need for specialist devices through to updating remote team members on rotas and shifts.
Time logging
One specific area of staff communications where SMS is already in use by some logistics business is in the area of time logging. One freight airline is enabling pilots and aircrew to register their flying hours via SMS. Staff simply text on their arrival at the airport and again on landing the plane. In this way, working hours can be precisely measured for billing and health and safety purposes without the need for specialist devices or additional time spent by staff in accessing online systems.
M2M communications
A growing feature of the logistics space is machine-to-machine communications (M2M). For example, vending machines can automatically inform their suppliers that they need restocking or factory stock measurement software can request additional stock direct from supplier's systems. Traditionally many of these communications have been facilitated via the Internet but they could equally be fulfilled via SMS message. SMS offers many advantages, not least that it doesn't require access to a fixed line or 3G Internet connection.
The mobile mix
That mobile is an important part of the communications mix for logistics companies is an undeniable truth. It is also true that specialist devices, apps and mobile web access are useful tools for a percentage of the industry's mobile requirements.
However, if the aim of a mobile service for logistics businesses is to provide functionality on the go for the widest possible staff and consumer audience, then SMS remains a real contender as the technology of choice.
About the Author
About tyntec
tyntec is a global mobile interaction service provider, offering high-quality mobile messaging and information services to mobile network operators, enterprises, mobile service providers and internet companies. tyntec offers its customers a unique level of quality in 2-way SMS interaction services. This promise is based on the company's pioneering service level agreements (SLAs) and security of message transmission from end-to-end. tyntec enables its customers to reach more than 90% of global subscribers and offers a 15-second SMS delivery guarantee, real-time delivery notifications of all messages and a no-message loss policy.
Munich +49 (89) 202 451 100 – London +44 (207) 436 0283 – Singapore +65 (6478) 3020
E-Mails sales@tyntec.com www.tyntec.com
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