Uploaded on Oct 3, 2022
This document will give you a good grasp of how last-mile delivery functions, as well as the procedures, advantages of the services, complexities faced by businesses, and lots more.
Last Mile Delivery Full Guide of 2022
Last Mile Delivery — The
Meaning.
The final step of the supply chain is referred to as last-mile delivery,
which is synonymous with the travel of a commodity from a
warehouse to the end customer’s doorstep. This is the most important
phase in the delivery process and should be handled carefully to
ensure prompt delivery. All on-demand delivery applications and other
delivery-based businesses put in their best efforts to achieve
maximum efficiency at this level.
Businesses are preparing this essential stage for a rapid and effective
shipment in response to rising customer demand. Whether it’s a
private house or a retail business, the supply chain’s end destination
must be reached with breakneck speed in order to keep churning out
more and more satisfied consumers.
The final mile of delivery is also the most expensive part of the route
from the transportation hub to the final destination, thus resource
efficiency should be a top priority.
Last Mile Delivery — The
Process.
When a consumer puts an order on the retailer’s or eCommerce
company’s website, their web browser or mobile application connects
directly with the retailer’s or eCommerce provider’s server.
The order is forwarded to a centralized order management system,
which validates stock availability and gives the consumer the option of
paying online. It then requests that the items be dispatched to the final
consumer from the warehouse that houses the stock.
It is mostly here that the last mile of delivery begins. The shipper sends
an agent to the warehouse to pick up the customer’s merchandise.
After that, the agent places the package into his car and drives it to a
preset hub. The parcel is then picked up by an agent from the hub and
delivered to the customer’s doorstep. All of this may appear to be
straightforward, but it is not.
In layman’s terms, there are six major
processes required.
•The sender’s orders are digitally stored in the carrier’s system, and
the order is delivered to the transportation hub.
•The order is sent to the delivery people, together with any pertinent
information (such as a recommended route and the locations of the
recipients).
•Orders are scanned for record-keeping purposes before being loaded
onto vehicles.
•Following that, the item is delivered to the specified recipient.
•The delivery status is then recorded and updated by the employees.
Last-Mile Delivery Solutions — The
Benefits.
•Streamlined Shipping & Delivery Process
A last-mile delivery solution automates time-consuming and repetitive
operations in the delivery process, saving your company a significant
amount of time, resources, and money. Waybills, handwritten receipts,
and notes without barcodes are examples of manual tracking systems
that are not only time demanding but also prone to human error.
Such methods become completely automated with a contemporary
final-mile delivery solution, eliminating verification difficulties and
assuring precise and efficient load planning. This type of solution also
provides predictive information to your company, automatically
allocating resources such as transportation, drivers, and even
merchandise.
•Quality Route Optimization
No entrance windows, bad weather, high traffic hours, and
unexpected route obstructions can all significantly slow down your
delivery. As a result, it’s critical to use dynamic delivery route
optimization software that calculates and assigns the most effective
delivery routes.
Such software may also analyze real-time data to notify your last-
mile carrier agents of impending traffic jams or severe weather.
•Flexible Deliveries
Flexible delivery choices are frequently sought by buyers, adding to
the ease of online buying. For example, if you’ve ordered urgently
needed medicine for your mother but are concerned that the
package will not arrive at your home address on time.
•Improved Order Management
Even with the greatest procedures in place, delays sometimes occur,
and it isn’t much you can do about it other than telling clients about
potential delays so they may better manage their expectations.
Consider this: isn’t it preferable to notify consumers of delays ahead of
time rather than waiting for them to become frustrated and call?
•Easier Payment Options For Customers
Many people throughout the world are hesitant to use their credit
cards or financial information online. For such customers, pay-on-
delivery is the most practical alternative, and the epidemic has
heightened the demand for contactless payments at the door.
By incorporating numerous payment alternatives within the delivery
app, last-mile delivery solution makes it easier for customers to pay
for their products.
Last Mile Delivery Solutions — The
Problems.
There is a slew of issues that bog down the whole supply chain and last-
mile delivery operations, making them the most costly. The increased
demand for same-day delivery, outdated IT infrastructure, limited
logistical visibility, COVID-19 restrictions, and other factors all offer
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According to reports by Invesp, more than 80% of customers nowadays
are prepared to pay extra for faster delivery, and meeting this
expectation is the most difficult hurdle for last-mile deliveries.
Inefficient routing techniques, human reliance on distributing jobs, and
poor handling of third-party logistics services make it exceedingly
difficult to reduce delivery turnaround times, posing a risk to the entire
shipment process.
•Old School Routing Methods
It is difficult, if not impossible, to assure timely and cost-effective
implementation of last-mile deliveries without highly efficient routing
technologies and procedures.
Traditional routing models rely heavily on manual procedures, making
it difficult to take into account all of the aspects that impact the
creation of highly productive routes.
Poor Visibility Of Logistics
The inadequate visibility of logistics operations is a primary cause of
time-consuming procedures due to legacy supply chain architecture
and conventional delivery processes alongside poor system
compatibility.
For example. It will be very tough for a logistics manager to track and
trace the precise position of a vehicle at any given moment in time if a
management solution is not in sync with a last mile 3PL company’s
system. This results in a slew of inefficiencies.
•Minimizing The Impact Of Covid 19
The ongoing COVID-19 epidemic has thrown established logistics
strategies into disarray and impacted last-mile delivery. The way
parcels are picked up, delivered, and received has altered as a result of
social distancing restrictions. Contactless delivery has now become a
standard expectation, and why not?
It guarantees that social distance compliance is maintained.
•Scaling Of Business Operations
Businesses are rethinking how they execute last mile delivery
operations in light of rising online sales and an increase in the quantity
of shipments, as well as the push to reduce delivery times.
During busy business days, when their own resources are depleted,
many companies struggle to complete deliveries. This makes it harder
to commit to same-day deliveries and makes customers pleased.
•Rigid Logistics Practices
In a world of quick satisfaction and continuously changing market
dynamics, inflexible delivery systems, which are regarded as one of the
primary supply chain inefficiencies, have little place.
Traditional procedures that rely on manual intervention fall short of
consumer expectations and result in a high level of customer
discontent. Modern clients, for example, appreciate businesses that
allow them to adjust the delivery time and location on the fly based on
preferences.
•Environmental Concerns
Unfortunately, transportation is responsible for more than 20% of
global carbon emissions. As environmental awareness grows, more
people are ready to pay a premium for items that are naturally
organic and packed with recyclable materials. Customers will not be
surprised if they expect carbon-neutral deliveries.
Options Available For Last Mile
Delivery
When considering all the options available for Last Mile Deliveries —
companies generally have 3 key solutions to go forward with. They
are:
•Local Couriers Service Providers
Local courier services are often smaller businesses with a limited
number of cars and vehicle sizes, therefore the size of the item to be
delivered may be a determining factor.
And when demand grows, few businesses have the ability to scale.
As a result, you’ll frequently need to collaborate with various delivery
service providers, which adds to the administrative burden and makes
it difficult to maintain a uniform delivery experience.
•Dropshipping Possibilities
Dropshipping is a business strategy in which a merchant collects
customer orders and distributes them to a manufacturer, wholesaler,
or organization that handles the shipping.
Merchants may add items from prominent marketplaces to their online
shop, route orders, and track deliveries to end consumers made by
product sellers using platforms that support drop shipping operations.
•Using Crowdsourced Deliveries
Crowd-sourced delivery markets, a relatively new product in recent
years, are transforming the delivery scene. These services are highly
creative, allowing for on-demand, variable-cost delivery.
These organizations can simply expand and bend to suit your clients’
demands because they don’t own vehicles.
Wrapping Up
As you can see, a reliable last-mile delivery system may significantly
improve your productivity and delivery experience.
We’ve been assisting shops all around the world in increasing delivery
efficiency by optimizing their last-mile operations. Get in touch with
us to learn how we can improve your last mile.
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