E-commerce sales have increased globally and are further expected to surpass $6.5 billion in revenue by 2023. This only means further pressure on the last leg of the process, i.e.’ last-mile delivery’. Let’s look at what it entails, the challenges, the factors involved, and the considerations that will help you choose the best option for your company.
The supply chain comprises three major processes: first Mile, middle Mile, and last Mile.
First Mile involves the distribution of the products from the manufacturer.
Second Mile focuses on long-distance transportation of goods, including customs clearance, port handling, storage, and loading, as well as inland transportation. During this process, the products are routed to the final station before delivery.
Last Mile, the process in focus here, is vital to e-commerce operations. It is when couriers are dispatched from a local warehouse or fulfilment centre to deliver to the final destination.
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Several factors affect the last-mile delivery logistics:
Customers not only expect but now demand same-day delivery. At times, customers may pay a premium for same-day delivery only to be disappointed when it doesn’t arrive. They realise this affects the efficiency of last-mile delivery companies. This increased customer expectations encourages businesses to strategise delivery routes and prioritise urgent deliveries to ensure they arrive as early as possible. Failing to do so results in poor customer satisfaction.
Many customers have incomplete or incorrect information, which delays deliveries. Issues such as incomplete addresses, isolated areas, narrow streets, or even the absence of customers are not only responsible for delays but also for increasing delivery costs, which companies bear.
In developing countries, infrastructure plays a significant role and is a key concern for mindful delivery. Delivering parcels often involves long, arduous journeys on inefficient routes that increase delivery time and disrupt schedules. In addition, it increases fuel costs due to the driving and time spent finding the correct location. Thus, poor infrastructure also hinders last-mile delivery.
Sometimes the type of goods poses a challenge for cargo bike courier services when transporting them through crowded, distant, or narrow locations. Fragile items such as glassware, antiques, artifacts, perishable goods, and other tangible goods are at risk of damage in transit. It requires the last-mile company to take care and implement safety measures to ensure these fragile items are delivered intact to their final destination.
Customers require and appreciate visibility into their parcels, and real-time tracking reassures them about delivery status and makes delivery companies more reliable. Companies that lack transparency and updates are likely to lack a detailed view of their operations. Companies must revise their workflows and adopt the latest technology to provide visibility and ensure complete customer satisfaction.
One of the most common challenges facing courier companies is maintaining transparency. With advanced technologies in place, customers expect companies to provide an end-to-end view of their shipped parcels. Customers now want to see the exact location of the assigned rider, often to ensure delivery is completed and to receive an accurate time estimate.
Companies are now using cloud-based tracking solutions that keep both the sender and the receiver updated on shipment status. This way, they can be informed of any potential disruptions to the delivery process without having to lodge complaints.
Last-mile delivery is the most expensive and time-consuming part of the shipping process; therefore, this industry poses unique challenges.
If you’re in an urban or metropolitan area, you’re already familiar with narrow roads and heavy traffic, where parking can be nearly impossible. This makes last-mile deliveries time-consuming and delays them.
Rural locations are difficult to access due to poor infrastructure, which increases travel time and causes delays.
Online shopping is now a common practice and a favourite activity for many, leading to increased online deliveries of all kinds, including heavy home décor and furniture. If a single individual handles the delivery, logistics can become arduous and time-consuming.
With the continued surge in e-commerce across industries, there may be a shortage of delivery vehicles and personnel. To address this, many businesses are relying on a costly option: ad hoc vehicle acquisition.
Businesses could take advantage of the expanding market and take matters of deliveries into their own hands, but that would only require them to set up a whole new department and start from scratch, not to mention the hiccups in the beginning. Or choose the wise option: partner with a third-party provider. Here are a few factors to consider before selecting a last-mile delivery service for your business:
Look into how the company accounts for factors such as delivery windows, driver availability, and proximity to locations to complete deliveries. Reading online reviews on Google, the company’s website, and social media accounts can also provide insight into others’ experiences with the company.
Technology is driving the future of many businesses, including last-mile delivery. It has revolutionised how customers receive their orders through advanced order tracking and seamless delivery, making it easier and more cost-effective for retailers to fulfil them. This helps customers feel appreciated, thus boosting their trust and enhancing customer experience.
In e-commerce, there is always a considerable risk when consumers entrust their goods to a courier and rely on the courier to deliver them on time. Going with one that, in addition to a guarantee to deliver safely, offers an attractive insurance benefit if the package is mishandled would put your mind at ease.
Another factor to consider is the type of vehicle you need, which is the right fit for your company’s needs. Whether you need a truck to transport a lot of or heavy items, but one that can maneuver through narrow urban streets, considering your requirement, working with a specialised company such as a fleet management company, or one that has significant experience with retailers or one that specialises in construction may be the right choice.
A company with a vast network of strategically located satellite branches provides easier access and convenience for customers to drop off their parcels. Additionally, packages for shipment can be picked up at your door. This, coupled with technology, has transformed the last-mile delivery service to a whole new level.
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