Last-mile delivery excellence is a necessity for any business that has to manage logistics and delivery. Any organization that delivers to customers, from a giant like Amazon to a small boutique, strives for optimal and successful last-mile logistics.
Many organizations struggle to ace at their last-mile logistics and gain customer gratification. Statistics says that companies spend around 53% of delivery costs on last-mile delivery. The last mile of delivery is the most inefficient and expensive part of the delivery journey. Given the advent of Amazon’s Prime delivery, the benchmark has been set for quick deliveries and every delivery business is facing increased pressure for rapid deliveries.
On an interesting note, 86% of customers are ready to pay to get their product within a day or within few hours of order placement. This directly pertains to the last mile of delivery. So companies must expedite their last-mile delivery processes to meet higher customer expectations. Efficient and robust last mile delivery are the keys to efficient, cost-effective last-mile delivery that keeps customers satisfied.
Going further, here are some of the top challenges in last mile delivery and logistics.
The term seems simple, but when you have visibility across every phase of your delivery management then steps to efficient and cost-effective last-mile logistics become clear. Where is the delivery? Has it been completed? Do you get updates instantly or a day after the delivery? All these vital questions pertain to delivery visibility and can have a big impact on your bottom line. You should have instant, real-time answers for these questions so as to accelerate the last mile of delivery. Customers also expect better visibility of their product’s journey and proper notifications about the journey.
When it comes to visibility, you must have real-time data. With real-time data companies can monitor the step by step process of delivery and any issues can be addressed quickly. Customers can get an idea about the journey of their product at every instance with real-time data. Clear real-time data at every phase of your delivery management will ultimately make your last mile delivery a success.
Lack of Proper Infrastructure
Poor infrastructure is always problematic in the last mile delivery, especially in developing countries where the issue is very common. This will lead to many challenges like inefficient routes and vehicle delays for transportations, improper planning and management. All of these lead to a longer journey, delayed product delivery, unachieved timelines and elevates your cost.
Care for Types of Goods
Delivery management systems handle different types of goods. In case of goods or substances that are perishable, flammable or toxic, extra planning may be required. Additional time and cost based upon the product is necessary and they could need different packaging. This different packing can increase the cost which will affect the overall cost of last-mile delivery.
Poor Control over Distribution Centers & Inventory
Businesses have multiple distribution centers available in many localities and they face issues in having centralized control over them. Keeping an eye on every distribution center would help them gain insights about a product’s availability when they need to reach customer. Communication with distribution centers will provide the status of inventory and this can avoid any last-minute confusion. Improved vision on the status of inventory before receiving it will boost your last-mile delivery process without any delay.
Ensuring to keep your customers in loop with timely notification will help you gain their satisfaction and also to have a smooth delivery. Imagine the scenario where the order placement is done, dispatch is done, the delivery partner reached the destination, and they find the customer unavailable. Sounds dreadful, doesn’t it? Notifying your customer of delivery time will help to put an end to such issues. Enriched notification at every leg reduces most of the issues and confusions in the last mile delivery process.
Solutions to These Challenges:
Let’s examine strategies and solutions that solve the challenges of last-mile delivery and logistics.
Engaging crowd-sourcing is one of the major problem-solving solutions for the last-mile. As the distributors take care the process of vehicle allocation and delivery process. This minimizes the time and cost factors. This helps eliminate delays in the crucial last-mile of delivery which keeps customers happy with timely deliveries.
More Distribution Centers
Increase the number of distribution centers in localities where the number of orders placement placed is high. The appropriate geographical layout of centers will help you match a high volume of orders, and keep your customers satisfied with optimal delivery. This reduces the delays in your last-mile of delivery.
Visibility & Notifications
Nothing comes in prior to visibility when you try to achieve a better last mile logistics management. Timely notifications can eliminate the blockades to visibility. A clear track of notification passage between internal employee team delivery partners, distributors teams as well as the lined-up customers will intensify your visibility. Better notification with visibility will level up the last mile delivery process of businesses.
A finer tracking system with good technological improvement is a mandate in every phase but especially in the last mile delivery part of a business. Last mile delivery faces issues with route mapping and other holdups which delays the whole delivery. Tracking real-time status of deliveries are hassle-free when you use a delivery management system, so why not explore the delivery management systems available that can provide such functionality?
Ready to adapt
New challenges continue to evolve, so you have to be prepared to tackle them. Keep an eye on every phase of your last-mile logistics by addressing the obstacles without any delay.
Aside from these strategies, the right technology can play a big role in overcoming the challenges that arise in last-mile delivery and logistics. Are you now looking for a delivery management system with robust features? IGotIt is a cutting-edge delivery management with top notch delivery features to make your delivery process a facile one.
Get in touch to know more about how we can help you ace the delivery game. our features and benefits.