Restaurant Streamlines Operations and Lowers Costs with Delivery Management Software

In a world where technology has made it incredibly convenient for customers to order their favorite meals with just a few taps on their screens, and the lasting effects of the rise of food delivery, restaurants are faced with the challenge of optimizing their last-mile operations to meet the rising demand.

Our client faced a challenge of optimizing their last-mile operations with their existing Delivery Management Software lacking multiple essential features, resulting in having to manually manage certain aspects.

With the number of orders increasing, running operations manually became unsustainable – and the F&B Franchise reached out to Lyve for help.

Challenges

The client was facing multiple operational challenges including:

• Costly and inefficient operations due to manual processes and high margin of error. 
• Assignment of deliveries to drivers based on food preparation time in the kitchen, without visibility on kitchen activities.
• Assignment of orders based on delivery areas/location without insight into drivers’ vehicle types.
• Inadequate utilization of the fleet.
• Fleet pay-out based on kilometers traveled by drivers without visibility on the exact distance.

Solution

We provided the client with Lyve’s Delivery Management to automate, optimize and overall streamline their operations. Its features cover the previously manually managed aspects of the client’s operations:

• Full integration through APIs – Their POS system was integrated to automate the process and avoid human error. 
• Automated order dispatching based on the team’s configurations – which in this case was customized on food preparation time in kitchen.
• Categorized/Licensing of fleet – allowing the client to assign their drivers to specific areas depending on the type of license they have.
• Pooled/Zoned fleet by allocating the fleet to a pool of stores within an area. 
• Estimated delivery per distance – Calculating the estimated distance travelled in kilometers for each delivery.

Results

Integrating Lyve’s Delivery Management Software has drastically enhanced our client’s last-mile operations through: So it was around 45k in Jan and then went to around 75k.

That’s around 65% growth. 

• Automated processes and reduced operational costs: With full integration, the client experienced a 65% increase in orders over the span of a year, going from 45K to 75K – all handled automatically, with 0 manual intervention. This has shortened delivery times and has reduced operational costs.
  • Statistics of auto assignment on sample stores:
    • Auto-assignment for single dispatch = 94% – (with only 5% of orders manually intervened with)
    • Auto-assignment for double dispatch = 89% – (with only 11% orders manually clubbed)
• Decreased driver wait time and optimal utilization of fleet: with the auto assignment trigger customized to order preparation in the kitchen, orders were assigned at the optimal time – optimizing the fleet’s working hours. 
• Expansion in delivery areas/ reach and increase in revenue: dedicating the appropriate drivers to different locations has helped in covering new areas without compromising on SLAs, increasing revenue. 
• Increased driver utilization: Pooling of stores / zoning helped in managing the last-mile operations with a smaller fleet which resulted in an increased driver utilization rate.
• Accurate drivers pay out model: the visibility on distance travelled for each order allowed the operations team to calculate the cost of each delivery and pay drivers accurately.