The Importance of Last Mile Delivery. -

The Importance of Last Mile Delivery.

Every aspect of the global supply chain faced enormous challenges from the pandemic. Yet, none have seen a greater impact than last mile delivery. In the first quarter of last year alone, online sales growth tripled over the year before to a 39% increase.

The last mile revolution in e-commerce is the new battleground for strategic advantage. Yet, competing with high volume package shipping companies is prohibitive for many. But customers still count on better service to stay loyal.

So if you know the importance of last mile delivery but might not have the right solution, keep reading. This guide to last mile logistics will help put your business on the route to success.

What Is Last Mile Delivery?

The first mile stage of logistics involves getting materials to manufacturing. In comparison, the middle phase directs the finished product to the warehouse for distribution. Each stage is critical to a company’s inventory process.

Yet, the last mile is the only contact point in the supply chain where your customers interact. When your product gets to this stage, your last mile carrier becomes the face of your operation. And if you are in retail or a customer service industry, the last mile is vital to the customer experience.

Last mile packages are what arrive at the customer’s door. When the last mile is working to expectations, a satisfied customer is more likely to stay loyal to the brand. But, those expectations have shifted over the last two years, and demands are higher than ever.

Every aspect of the supply chain is critical to working with the next. Businesses must keep materials flowing to ensure there are no system interruptions. But the consumer only sees the end of the route to their destination.

Last Mile Challenges

Of course, the number one challenge to business is the cost of last mile delivery. The increase in online shopping through the pandemic has helped drive up costs. Customers now want faster delivery at almost no charge to them.

So the challenge to companies is finding efficient ways to provide the last mile at a reduced cost. Yet, for last mile logistics companies, there are deeper challenges. Geography plays a prominent role in creating efficient systems for last mile delivery.

Vehicles must negotiate heavy traffic in urban centers to deliver goods on time. But in rural areas, the distance between drops adds time to driver efficiency.

Then the size of each item dictates another cost to logistics companies. More oversized products like appliances and furniture need extra people to complete the delivery. All these factors add to the time it takes for last-mile service.

One more element also adds to the cost of logistics efficiency. Customers not only expect fast and inexpensive last mile delivery. Return items also have to get addressed without added pain points.

As a result, warehouses need efficient processes for accepting returns back into inventories. An unorganized return system can add more cost to last mile logistics. Drivers get taken away from delivery to perform pickups.

And, of course, labor costs for driver fleets and support staff are rising. Staffing shortages are also a significant concern for high volume package shipping firms.

Last Mile Solutions

Businesses are finding new ways to streamline the high volume package shipping process. Warehousing has become an integral player in improving systems. Retailers, for example, ship bulk loads of products to warehouses nearer destinations.

When staged at local warehouses, last mile delivery then travels shorter distances. The consumer gets the product delivered faster as a result. These pop-up warehouses create significant savings in shipping costs.

Last mile logistics continues to experiment with new transportation innovations. Drones and driverless vehicles aren’t a regular part of the supply chain yet. But any trend that reduces labor costs is a bonus to the e-commerce business.

Businesses in high volume package shipping must maintain tight inventory. So robotics and software have become part of warehouse systems.

The Latest Technology

Programs that integrate all improvements represent the most considerable advances in last mile logistics. A vital aspect of high volume package shipping is knowing where items are at all times. So last mile experts use technology to maintain visibility.

The software scans shipments and tracks them throughout the journey. Real-time tracking keeps the right package moving to the right destination. And customers can see where their shipments are in the line of travel.

Yet, these programs do much more than track packages in real-time. Data from tracking shipments help carriers and retailers make improvements in their systems. With critical information, routing adjustments get made to speed up last mile delivery.

Real-time tracking integrates other features to enhance the customer experience. Drivers use the technology to capture digital proof of delivery. A reduction in lost inventory is another saving passed on to the e-commerce business.

The manufacturer can also see trends in sales and returns from the data. All parties remain aware of each item’s progress with last mile logistics experts. Each of these elements working at their best produces cost savings in the system.

Putting Customers First

Increasing demands have affected what is last mile delivery today. The pandemic forced many changes in logistics for the better. Technology now helps more businesses improve their last mile process.

Maintaining transparency is the key to keeping up with the speed of business. Yet, the systems that technology provides will also help keep business growth on track.

So if you are looking to improve your last mile efficiency and wow your customers, contact us today

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