Every logistics business or courier company strives for the perfect last-mile delivery. It’s a tough world out there, and the final stretch of the delivery process comes with its challenges.
Descartes, alongside SAPIO Research, conducted a survey of 8,000 consumers across Europe and North America. The aim was to thoroughly assess the current landscape of e-commerce and the effectiveness of home delivery services.
The report found that 67% of customers experience delivery issues.
How can you beat the heat when it comes to delivery? Here are a few challenges the industry faces and how to overcome them.
What is last-mile delivery?
Last-mile delivery refers to the final step in the last mile delivery process where a package is transported from a distribution center or warehouse to the customer’s doorstep.
This final step is often considered the most challenging part of the delivery process due to the high costs and need for efficiency, known as the challenges of the last mile.
Efficient last mile delivery is crucial for maintaining high customer satisfaction, as timely and accurate deliveries directly impact customer loyalty and overall experience.
Last mile delivery logistics is crucial for optimizing the transportation of goods from a distribution hub to the final delivery destination, focusing on affordability, speed, and accuracy. By getting this last-mile right, companies ensure a positive end-to-end shopping experience.
1. Delays
Imagine you’re a delivery company who delivers packages. Delays in your logistics can possibly see you lose customers.
You can beat the delay headache by using route optimization software. This technology can assist your drivers to avoid complicated, high traffic routes that are making you miss delivery deadlines.
Locate2u has route optimization software so your drivers can make deliveries easily. Not only will you make timely deliveries, but your company is also keeping drivers happy by giving them the right tools to complete their dispatches.
How to overcome delays
Investing in route optimization software will help your drivers deliver better. Delays in your logistics can possibly see you lose customers due to inefficient delivery routes.
This helps reduce travel time. The software also takes weather hazards into account. You can give customers peace of mind with on-time deliveries.
Optimizing warehousing
Another way to overcome delays in last-mile delivery is to optimize warehousing and fulfillment centers. Optimizing the use of delivery vehicles and strategically placing transportation hubs can significantly reduce travel time and improve delivery efficiency.
Your logistics company can establish smaller warehouses close to high-demand areas. This will reduce travel time in making deliveries, and will assist to increase delivery turnaround.
Amazon has brought micro-mobility hubs to Ireland. Micro-mobility hubs support deliveries by electric cargo (e-cargo) bikes and on foot, reducing the need for delivery vans in city centers.
These e-cargo bikes can also maneuver faster through traffic, where a traditional vehicle will come to a complete stop in peak traffic.
Flexible last mile logistics model
Some customers are willing to pay extra for express delivery services. Your logistics company can expedite these deliveries, allowing your fleet to allocate more time to long distance hauls.
Have flexible deliveries like same-day and next-day delivery. Implementing efficient final mile delivery strategies ensures that express and same-day deliveries are completed on time, enhancing customer satisfaction. Implementing options for customers will go a long way in creating trust and brand loyalty.
Retail giant Walmart offers express on-demand early morning delivery, saying in a statement, “Shopping should be personal and as tailored to fit your lifestyle…”
Another example is Instacart and The Home Depot partnering on same-day delivery. This sees customers receive items in less than an hour.
2. Limited access to remote areas
Your delivery business has been operating increasingly in remote locations. The remote locations are turning up the orders.
However, your bulky delivery vans are just not cutting through the rough terrain. Your vans are also being scratched and damaged en-route to a customer.
How to overcome limited access to remote locations
Drones have made it possible to deliver items to remote areas.
There are several reasons drones are being used for delivery. The standout has to be the speed of delivery. Drones fly above ground and are not restricted by traffic, making it easier to reach the final destination.
Companies like Walmart and Amazon are utilizing drones to deliver items to a customer’s doorstep. The direct drone journey to a location can save a delivery driver time. A traditional van may take several hours to reach a remote location, or be unable to make a delivery.
Recently DJI, a Nepalese drone service Airlift, video production company 8KRAW, and mountain guide Mingma Gyalje Sherpa have completed the first successful drone delivery tests on Mount Everest.
This proves that drones can beat the remote location dilemma. This innovation is particularly useful for last mile deliveries in remote and hard-to-reach areas, ensuring that packages reach their final destination efficiently.
Logistics companies can’t begin to fathom how frustrating it is when a customer experiences a failed delivery. You may order a phone case but can’t receive the package because you work during delivery hours. There is a solution – parcel lockers.
Parcel lockers
You can opt to have your parcel delivered to a parcel locker located at a local grocery store. Parcel lockers are an innovative solution within last mile delivery services, providing customers with flexible and convenient options for receiving their packages. After work you can easily collect your parcel with an access code to the locker.
This nifty technology is making urban logistics easier. Supermarket chain Aldi is trial parcel lockers outside selected stores in the UK. The initiative is in partnership with InPost which has over 6,000 parcel lockers in various areas.
Customers can now collect or return parcels easily while even doing shopping, as the lockers are accessible with a QR code.
Partnerships for last mile delivery services
So your logistics company is growing at such a rapid rate, your own delivery drivers can’t keep up with the demands of last mile logistics. Partnering with third-party logistics companies can enhance your mile delivery services, ensuring efficient and reliable deliveries.
Well, it may be time to partner with third-party logistics (3PL) companies who have a good knowledge of a particular area.
These partnerships will assist in bulking up your delivery network, and help your driver fleet experience less failed deliveries.
Photo Credit: Canva
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
