Zone Logistics: even faster and more efficient delivery
At DODO, we are constantly looking for ways to make urban delivery faster and more efficient. Zone logistics is a smart resource-sharing concept that helps the customer get their shipment faster, the client pays less for transport and the utilization of each vehicle increases, which positively impacts the traffic situation in cities.
The concept of zone logistics
Zone logistics works on the principle of sharing vehicles and orders within a certain area to maximize the use of each means of transport and to shorten the journey to the customer as much as possible. It is a highly efficient and environmentally friendly urban logistics concept that solves multiple problems at once – reducing road traffic, traffic emissions and ultimately delivery costs.
The zone aggregates all orders as well as DODO couriers and transport vehicles into a single unit that is self-sufficient and maximally efficient.
How will it work?
Each city will be a separate zone automatically organized via artificial intelligence. Each individual zone will include branches and “pick-up points” of different clients (e.g., food and hot meals, electronics, garden furniture, sports equipment, clothing, cosmetics, books, pet supplies, etc.) offering different delivery speeds (express delivery, same-day or next-day delivery, etc.).
Advanced technologies will calculate and optimize capacity in real time to pick up orders at different locations while delivering them efficiently and quickly to end customers. The objective is to maximize the utilization of each vehicle. The dispatcher will have more of a monitoring function, intervening only when necessary, which is a major difference from standard parcel handling, where the dispatcher has a key coordinating role.
Couriers will operate within the zone and collectively cover the needs of the entire area. They will use different types of vehicles (electric scooters, bicycles, larger and smaller cars) and advanced algorithms will plan the capacities so that each means of transport is used to the maximum. As a result, no courier will be needlessly transporting “air”.
Advanced big-data work and predictive calculations are provided by the comprehensive GAIA system developed in-house.
Step by step for maximum efficiency
At DODO, the concept of zone logistics is already working to a limited extent. We have a part of the fleet that has not been permanently allocated to any of our clients. By sharing these vehicles, we are able to cover the peaks of several partners at the same time.
As part of our 30-minute food delivery service, we have a small zone around each client branch that is handled by one dispatcher. If there are other catering clients within this zone, all deliveries are organized simultaneously. The courier therefore delivers orders for multiple clients with different pick-up and delivery locations at the same time, making their journey much more efficient than if they were delivering for just one client. Adherence to the time limits set by the client for the delivery of the order to the customer is the norm.
We expect to see a total disruption of logistics in the future. Instead of merchants requesting carriers to transport goods, carriers will offer available transport capacity to merchants in real time.
How do we see the future of zone logistics?
We are gradually applying the principles of zone logistics to all our clients’ deliveries across segments, thereby balancing the volume of orders over time – regardless of what a particular courier is carrying. This ensures maximum utilization of all vehicles; no car is needlessly transporting “air”. For example, a courier will deliver several purchases from an online supermarket, a new office chair or fresh flowers in one trip, making the most of not only the space in the car, but also the fuel and time. As a result, our delivery will be more efficient, the customer will receive their delivery faster and the client will pay less for the delivery.
Looking for a last mile logistics solution? Do not hesitate to contact us, we look forward to working with you.