Overview

The demand for a quick and outstanding delivery experience is more significant than ever and still growing. Studies reveal that an estimated 80 percent of all customers expect real-time delivery tracking, whereas 45 percent of the same customers expect quick delivery within 2 hours. Consequently, businesses are compelled to change their operations to accommodate and adjust to this new mindset.

Smart businesses coming up with emerging ideas to meet the rising consumer demands is noticeable. Especially when the number of online shoppers continues to proliferate, demands must be addressed. This is one investment aspect that has not been so critical for a successful business. The conversion rate, long-term growth opportunities, and brand loyalty depend on this. This introduces last mile delivery.

What Is Last Mile Delivery Logistics?

Imagine an excellent marathon runner running a race. He performs brilliantly in all the laps but fails to drag himself in the last and final lap. His competitors swiftly overtake. Companies positioned as leaders in the market should understand the concept and the importance of last mile logistics and operational hazards. Manufacturers can introduce their complete supply chain only until the product is delivered to the warehouse or the customer’s destination.

Last mile delivery logistics is a challenge for businesses, both small and large. Trivial factors start accumulating when products reach their last mile – weather conditions, next-day delivery, unavailable areas for delivery, etc.

But there are many challenges too:

• Delivery Rates: Amazon is one of the retail giants, with Amazon Prime being a powerful weapon. With Amazon's same-day delivery services frequently available, the company is delivering products into the hands of consumers within a few hours of orders. Many retailers have started reducing their delivery time and started to ship directly from stores instead of distribution warehouses to cut the distance between receiver and shipper.
• Larger Shipments, Multiple Boxes: Large products, such as furniture, often arrive in several boxes. Shippers should consider the packaging of these boxes before shipping to ensure unpacking is easier for customers and pieces are not misplaced in transit. If your business providers assembly services, be selective about the carrier as there might be an additional charge.
• Supply Chain Visibility: Transparency is the most important factor in a business. make sure you have updated information about the orders in transit, shipped orders, and the original date of order. These are the details of the last mile delivery supply chain.
• Fleet Management: Retail giants prefer to have their fleets. However, small businesses work with external fleets and multiple carriers. As a result, a part, or almost all of the last mile delivery logistics depend on resources outside the organisation. Here, it is important to find proper ways of controlling the experience as customers may blame the business for poor experiences, and not carriers.

Logistics innovators have been making bounds to last mile delivery after more extensive and efficient research and conversations. Noted below are 8 emerging ideas to enhance delivery performance:

#1: Analyse Logistics Data

• Regardless of the amount of data coming in involving the fleets, external carriers, aggregator sites, etc., it has to be organised. If data is not organised properly, you cannot do much with it.

  Put all the data in a centralised location. This would help you to understand everything about the logistics process and make necessary adjustments to improve it consistently.

#2: Provide Data-Driven Solutions

• That is mandatory for last mile delivery logistics. To shorten the time of delivery and minimise orders, it is critical to detect the early onset of inaccuracies and slowdowns. If your company does not have an existing tracking system for each delivery, you should invest in performance metrics.

#3: Introduce Routers

• Plan the routes efficiently using a route management system or software. It is often challenging to create a multipoint route for final delivery without software. Thus, your logistics may not be efficient enough. Innumerable route management software is available to assist you with the logistics and deliver products efficiently to customers adhering to the specified timeline. Whether you are a large enterprise or a small business, route management can be extremely helpful.

#4: Driver Dispatch Automation

• Auto dispatching can reduce labour costs and service time significantly. When software does the work, you can save a lot.

  Automated driver dispatch not only saves time, as you do not operate manually, but also software such as Rout Planer also updates routes in real-time. This ensures an efficient system, which also reduces the requirement of drivers to complete your deliveries and has a streamlined route.

  You can allow the service provider to do everything and set some rules for auto-assignment based on route distance and driver’s location. This limits the tasks for drivers.

#5: Include Crowdsourced Delivery

• Crowdsource delivery is one of the most innovative phenomena that delivery logistics can adopt. When orders are placed from a restaurant or online store, non-professional couriers in collaboration with professional services execute the order. No specialised logistics are involved here.

  However, this method may not suit every business, though the model works very well for urban small-scale businesses. This is also an efficient as well as a cost-effective way of meeting the challenges of last mile delivery. It provides a world-class experience to consumers. For instance, Amazon now offers groceries while UberRUSH delivers almost everything.

  Although there are certain disadvantages of these services like courier shortage and high costs, they are a viable option for small businesses in urban settings.

#6: Track & Manage Customers

• Last mile delivery logistics requires complete customer data for efficient services. If your business uses CRM software, there should be facilities to take noes of specific customers and accounts.

  When your business individual attention to clients, the entire cycle becomes more productive and efficient.

#7: Bring In Tracking Software

• Offer an option to track shipments. It is a unique way of building customer confidence when it comes to shipping operations. Businesses involved in in-house last mile logistics can use different software options to assist their customers to track orders.

#8: Automated Status Updates

• As stated before, customers prefer to track their orders and note the status. Last mile delivery logistics tools allow customers to know about the delivery status in detail. Customers can learn when to expect an order with SMS notification.

Closing Thoughts

• Implement the latest technology for transportation and delivery to ease the method. Driver management is an excellent solution to optimise performance. They can manage routes and ensure a quick delivery. Although, a bit expensive technology as it involves GPS-equipped vehicles, it is extremely efficient and productive.

  Logistics becomes complicated in the last mile. Use the latest tools that suit your business and get in the right direction.