Last Mile Delivery: How Can Businesses Benefit from It?

Many companies have seen a significant increase in e-commerce sales after the onset of the pandemic and resulting lockdowns. This, along with growing consumer demand and increased competition among retailers, has led companies to shorten lead times, increase warehousing space and improve customer service in general.

As a result, last mile delivery has become a key area of focus - one that can help a business gain a distinct competitive advantage.

What Is Last Mile Delivery?

Last mile delivery is the final stage of supply chain distribution that involves transporting goods from the manufacturer or warehouse to the point of consumption.

Businesses face several challenges as they try to figure out ways to better deliver customer service.

• Issues for last mile fulfillment can include pick-and-pack complexity, automated solutions, or the internet of things to move products from place to place automatically.
• Last mile delivery of goods often includes innovative technology such as autonomous vehicles or drones. The use of technology helps manage the complexity and cost while creating faster deliveries and tighter delivery windows.
• Customers demand better customer service with more flexible and timely deliveries. There are various options for efficiency in delivery, including things like climate control and same-time changing locations.

Effective Last Mile Strategies

Here are a few ways to improve customer experience during last mile delivery.

1. Provide Omnichannel Fulfilment

Having a variety of options for fulfillment has now become vital. Some retailers offer curbside pickup, buy online and pick up in store, shipping from the store, shipping to the store, or endless aisles that combine physical and virtual experiences.

2. Provide a Flexible Delivery Date

Consumers want to have complete control over the delivery date of their items. It's essential to offer same-day delivery and give customers the option of ordering weeks in advance for specific items, such as furniture or home décor.

3. Allow Real-Time Transparency

Consumers demand real-time transparency and communication throughout the order fulfillment lifecycle. They want to know the status of their orders - when they are being prepared for shipment, when they are shipped, where a load is at any moment and the estimated delivery time.

4. Ensure Contactless delivery

Retailers need to digitize the delivery process as much as possible. For example, grocery and clothing items can be left at the customer’s front door.

5. Promote Cross-Functional Intelligence

Associates must have several tools at their disposal, including real-time intelligence. It helps retailers and 3PL partners to be well-informed about their shoppers' needs and build trust and loyalty with them.

Scope of Last Mile Delivery

The scope of last mile delivery can be described in five points:

1. With the help of a company's last mile strategy, leadership can assess what methods they would like to use to support their growth

2. With the right strategy in place, leadership can be better equipped to manage the resources internally and externally for the best outcome possible for the business.

3. It's essential to consider sectors and seasonality to determine where investment (buy or build) may be most necessary and beneficial.

4. Innovation can lead to transformation in industry, but companies need to have a way to support their customers should they change preferences. As many companies are now investing in the direct-to-consumer model, pressure is mounting to keep up with the competition.

5. Failure to effectively plan for last mile delivery can have implications for other parts of the business and limit it from expanding.

Additional Read: Will the Direct-To-Consumer Model Eliminate Retailers in E-Commerce?

Benefits of Last Mile Strategy

By developing an effective strategy for last mile delivery, organizations can see many benefits, such as:

• Organizations can save money and time with a solution that enables them to tap into their customer base.
• Organizations can customize the customer experience and provide visibility for increased flexibility in delivery.
• Through improved processes and optimized routes, you can reduce the total cost of last mile delivery logistics while reducing waste.
• To successfully get customers into their store, retailers must acknowledge and address the different barriers. One of these barriers is that decision-making can be complex without reliable data.
• With limited system infrastructure, providing a holistic report related to all aspects of the business can be difficult.

Conclusion

Last mile delivery is a crucial part of the logistics process, and its efficiency can make or break a business. There are many factors to consider when trying to improve last mile delivery, but the most important thing is to focus on the customer experience. By making sure that customers are happy with the service they receive, businesses can ensure that they keep coming back for more.

Frequently Asked Questions