Most businesses seem to have no interest in understanding last-mile logistics, which could leave them exposed to problems by the slightest change in market trends. The last-mile logistics market is huge and it is expected to continue to grow as e-commerce /online buying is still at an old time high since the pandemic and is not expected to slow down anytime soon.
What is Last-Mile Delivery?
Last-mile delivery refers to delivering products from the nearest distribution hub to the required address avoiding any delay in time. The term last-mile delivery is used for businesses that require instant delivery. Examples of such businesses are food delivery businesses, enterprise supply chains, and businesses that promise one-day delivery. There is a race to develop new technologies and experimental delivery models to increase parcel volume and deliveries and enhance customer experience.
The Importance of Last-Mile Logistics
The processing and delivery of an online order aren’t as direct as it seems.
1. Demand speedy deliveries – The pandemic changed the delivery logistics drastically. Consumers now demand quick deliveries. Remember if your business cannot complete the demands of consumers, they have your competitors as an option.
2. Expensive last-mile mistakes – Failure to plan can see an increase in costs such as an unplanned last-mile delivery can put the delivery trucks in heavy traffic during rush hours, leading to increased failed deliveries, fuel costs, and a clash in truck transit times.
3. Last-mile is the last impression – It is important to keep proper planning for last-mile delivery because the customer’s experience is directly dependent on it. Losing a customer due to poor delivery times can mean a decrease in the amount of repeat purchases, resulting in significant financial losses for a growing business.
Solutions To Tackle Last-Mile Logistics Challenges
Last-mile logistics might be challenging to tackle as last-mile delivery is the most important step in the entire delivery process. But a strategic execution of the last-mile delivery process can yield better results. Here are some last-mile delivery solutions to tackle the challenges of last-mile logistics.
1. Taking cost-effective measures
In order to save on last-mile deliveries, while ensuring customer satisfaction, it is important to replace the traditional methods with cost-effective alternatives. Delivery operations can be risky. factors like traffic congestion delays in transportation hubs, and an increase in shipment total cost; might end up affecting the delivery operations.
So it is important to take alternatives for all the challenges of the last mile. Logistics companies can ensure that there is a connection between the management and the delivery personnel. This will ensure complete visibility and the best use of existing resources.
Route optimisation is a smart tool that can help in detecting the most cost-effective routes for delivery. The product’s journey and on-road time can be minimised using route optimisation, in the case of same-day delivery.
2. Avoiding delays and failed deliveries
Avoiding delays in deliveries and reducing the number of failed deliveries can help make final mile delivery a plus point for the last mile logistics.
Enhancing last-mile delivery service by introducing a real-time interface between the customer and the shipment tracking can stand up to the customer’s expectations. Consumers can be informed regarding the delivery of the product before knocking at the customer’s doorstep, to make sure that they don’t leave their location.
Routing software can provide the best route to reach the final destination without any delays. In order to deliver packages on time the entire process- a collection of parcels from the warehouse to reaching the customer’s location must go through real-time optimisation.
3. Switch to the latest technology
One of the main challenges of last- logistics is reaching out to customer expectations, by enhancing delivery services, without losing profits. In order to remain competitive, logistics companies must involve smart technology to enhance their delivery services and attract more consumers.
Technical advancements both in transportation as well as in management can prove to be very crucial for the last mile logistics. Remember that an effective delivery management system cannot function optimally on its own. A warehouse management system (WMS), enterprise resource planning (ERP), or supply chain management (SCM) suite are good choices.
WMS offers solutions for controlling inventory (expiration date tracking, cycle counting), streamlining warehouse operations (receiving, put away, picking, packing, shipping), and possibly a few transportation management options such as shipment tracking.
Speak to one of our team to understand how Clarus’ WMS system can cost effectively support best practice warehouse management processes, better customer service and highly efficient working for a range of warehouse operations with pay per month options and no IT infrastructure needed.
Our platform can scale from a one user, small depot system to a 100’s of user distribution centre operation. The ClarusWMS platform will cost effectively scale with your business based on demand.
ClarusWMS is a UK based supplier of warehouse management solutions with a wealth of industry experience in third party logistics, wholesale / retail distribution, online fulfilment and manufacturing warehousing.