Today’s customer expectations demand fast and accurate shipping, no matter where they shop online. This means there will be increased pressure, as well as new challenges, for retailers and shippers to deliver a positive last-mile delivery experience for online shoppers.

When it comes to last mile delivery it is a blooming market as it has made people lazy with time. People are increasingly willing to pay a premium for the luxury of comfort and convenience, contributing to the burgeoning market of last-mile delivery.

In this article, we will explore the complex nature of last-mile delivery, challenges, and innovative solutions to deal with customer’s expectations.

What is last-mile delivery?

Last-mile delivery is a logistics term that is defined as the transportation of a package from a fulfillment centre or warehouse to the package’s final destination that is end consumer. The goal of a last mile carrier is to deliver the item as quickly and cost-effectively as possible.

When a consumer decides to purchase something, they don’t just look for the product insights or the price. They also check the delivery time, which has become a key factor for people to turn into consumers. Thus, fast last mile delivery can be an asset to the e-commerce brand market.

How does last-mile delivery works?

1. Order placement and processing : The process begins when customers place an order. The order placed is processed at the warehouse or distribution centre and sorted based on its destination, delivery time, mode of transportation, etc. The order then gets packed and prepared for transportation.
2. Dispatching and Routing : After the order is processed, it is dispatched from the distribution centre by delivery vehicles. The delivery partner also optimises the delivery route of the order for efficient delivery by considering the capacity of the delivery vehicle, delivery priorities, traffic conditions, etc.
3. Tracking : Tracking is a crucial part of the delivery process. The delivery vehicles are provided with GPS tracking devices and communication systems for real-time tracking and monitoring of orders and the delivery process. The tracking features update customers with the real-time status of their order, the estimated time of arrival, or any expected delays.
4. Delivery : In this step, the delivery partners follow optimised routes and plans to transport the order to its destination. The delivery is done as per the scheduled time preferences chosen by the customer. The signature of the customer or recipient is also taken by the delivery partner as proof of safe delivery.
5. Customer’s Feedback and Follow-Up :After delivering the order efficiently, the last step is to collect feedback from customers regarding the delivery experience. The follow-up should be based on the customer’s delivery experience, the condition of their parcels, any suggestions, complaints, etc. Gathering such informative feedback from customers helps delivery companies identify areas for improvement.

Key challenges in Last-mile delivery

• Traffic : The traffic situations are horrible in metropolitan cities like Delhi, Mumbai, Bangalore etc. When the delivery partner delivers something, they have to go through all the traffic. Also, some of the e-commerce apps show the time and deadline of shipment which makes it difficult for the drivers to reach on time.
• Address inaccuracies : Sometimes, buyers give incomplete or wrong addresses which wastes time of delivery partners to reach in the given time.
• Last-Mile Distance : Long distances between distribution centres and delivery destinations can increase fuel costs and delivery times, especially in rural areas.
• Customer Availability : Customers may not be available to receive deliveries during scheduled delivery times, leading to missed deliveries and additional delivery attempts.
• Return Logistics : A lot of e-commerce platforms provide return or exchange options. Managing returns from customers back to the retailer or warehouse adds complexity and cost to the last-mile delivery process.
• Cost efficiency : Last-mile delivery is expensive for both consumers and delivery companies. Different things affect a cost-efficient and profitable delivery, like fuel costs, vehicle maintenance, labour costs, operational costs, etc. Many hidden expenses arise during delivery, such as delays in order cancellations, customers abandoning the parcel, etc., which results in a higher cost of delivery.
• Security Thefts: With growing eCommerce, the security of parcels has become a challenge for delivery partners and customers. There are cases in which the parcels have been stolen from the doorstep, delivery boys have not delivered the parcels safely, customers have committed fraud, etc., These result in financial loss for the company or the customer, damage to the reputation, and create trust issues. To deal with such challenges, many companies have come up with security plans, including package tracking, identity and signature requirements, secured delivery locations, etc.

How you can improve Last-mile delivery – Solutions & Strategies

There are many strategies and innovative solutions which we can improve and speed up last-mile logistics.

Smart Warehousing

Smart warehousing includes streamlining the warehouse process using technology and automation. This solution will not only improve last-mile delivery services but will also improve inventory management and enable businesses to complete order processing faster. The latest devices, like RFID technology, barcode scanning, and warehouse automation, will decrease the chances of processing time and errors.

Investing in Technology

Investing in advanced technologies is important to improve the delivery process. Advanced technological solutions like real-time tracking, GPS tracking, management systems for monitoring vehicles, telematics, etc., make the delivery process efficient.

Real-Time Tracking System and Transparency

Real-time tracking helps companies and consumers keep track of the package until it reaches its final destination. Providing real-time updates, tracking information, delivery notifications, SMS alerts, and email notifications increases transparency among customers and delivery partners.

Collaboration

Collaborating with third-party logistics providers, local courier companies, and delivery partners helps companies to increase their delivery reach. This collaboration and partnership add extra resources, expertise, infrastructure, etc., and helps businesses to grow with the growing demands of the customers.

Conclusions

In conclusion, last-mile deliveries play an important role in a successful eCommerce business and overall customer satisfaction. All businesses want to compete with their competitors and meet customer’s expectations, as supply chain logistics are constantly changing. Businesses should understand the challenges that they could face during deliveries and implement strategic solutions to increase their efficiency. Investing in technology to keep up with future expectations and efficient reverse logistics, and collaborating with locals can help delivery service providers improve last-mile deliveries.

Express 3PL – Your warehousing and fulfillment partner

As a third-party logistics firm Express 3PL can help business mitigate a variety of risks throughout the last mile delivery network, we help businesses free up time to concentrate on core competencies without suffering from the ever-shifting logistics landscape.

Our comprehensive logistics platform that offers a streamlined last mile shipping process, customer communication and tracking devices, reverse logistics, real-time tracking, route optimisation, inventory management.

If you are looking for a partner to take care of all your logistics hassles.

Connect with us today at EXPRESS 3PL.