What Does it Take to Ace Last-Mile Delivery?

What Does it Take to Ace Last-Mile Delivery?

Modern technology and the trend of on-demand deliveries have changed the face of the delivery business. Order fulfillment begins when an order is placed and ends in the final stage of a delivery process which is the last-mile delivery. Traditional delivery systems can encounter many issues Last-mile delivery is pivotal and challenging for any delivery business. Successful last-mile delivery is key to gain customer satisfaction, retain existing customers and win over new ones. Let’s explore why last-mile delivery is important and how to ace it in the modern era of delivery.

What Exactly Is Last-Mile Delivery?

Last-mile delivery, as the name suggests is the last and most-crucial leg of the delivery journey. The primary intention of the last-mile delivery to deliver the package to the user’s doorsteps as fast as possible without any friction. Though it is the last phase of a delivery journey, studies show that it takes 50% of the overall shipping cost.

It is an essential cog in the delivery cycle because of any delay or failure in product delivery can make your customers jump to other alternatives. So last-mile delivery is an anchor to retain your customers.

Why is Last-Mile Delivery More Challenging Now than Previous Eras?

Gone are those days when shipping and delivery took six to eight weeks. In this technology-driven era, customers will not wait so long to receive their products. In fact, in this on-demand era, many customers expect same-day or same-hour delivery. This shows the major distinction between a traditional and modern delivery ecosystem.

The last-mile delivery poses many challenges like delivering thousands of individual products to different places within the promised time-frame. To deliver an order, your delivery partner sometimes has to navigate busy routes and heavy-traffic. Sometimes inclement weather can delay deliveries. Dynamic route optimization through a digital delivery management systems helps find better routes for delivery partners. In addition, with the rising number of orders, you need adequate partners to deliver them or customers will be left in the lurch. Having reserve delivery partners and arrangements with third-party fleets to support your delivery business allows you to meet these surges in orders successfully. This scalability is crucial to meeting orders placed and providing a high-quality last-mile delivery to satisfy customers.

Modern customers expect to view the status of the delivery and this is an important element of successful last-mile delivery. Digital delivery management systems help provide this visibility as well as notifications on the delivery status.

Reduce the Cost of Last-Mile Delivery

The high cost spent on last-mile delivery is one of the major challenges to tackle. Most of the delivery businesses provide a free-shipping offer to pique customers’ interest to shop with them – this helps them get ahead of competitors. In this case, companies have to bear the shipping cost themselves.

One possible solution is to have multiple geographical locations of inventory so it is more cost-effective to deliver orders and boost speed of delivery. This option might be tough for the smaller fish in the delivery pond. When it comes to bringing down costs, a digital delivery management system can be your best friend. You can count on it for streamlining delivery processes, optimizing routes, dispatching orders from the nearest inventory sources and assigning drivers who are closest to the location. All of this improves the efficiency of your last-mile delivery and brings down costs.

Manually handling all these processes throughout the delivery cycle can be error-prone and limit scalability. To stay ahead of competitors, a digital delivery management system is a requisite. Such delivery management systems help tackle and optimize all your delivery-based challenges.

Raise the bar on your last-mile delivery with IGotIt’s digital delivery management system. It provides cutting-edge functionality like electronic proof of delivery(ePoD), real-time tracking, geo stamps, delivery route optimizations, and many features to run your delivery business smoothly. Please get in touch to explore how IGotIt can help you ace the delivery game, particularly the last-mile delivery.

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