Last-Mile Delivery: Challenges and Solutions

The words first-mile and last-mile delivery are widely used in the logistics industry to describe the transportation of goods. This blog article will examine the problems with last-mile delivery and try to offer solutions.

The most important step in ensuring customer loyalty in logistics is to improve the last-mile delivery process, which is the point at which the package is delivered to the customer's doorstep.

A poll found that 61 percent of logistics firms agree that the last-mile delivery method is the least efficient one throughout the supply chain.¹ According to research, it represents more than 50 percent of the entire shipping expense.² So let us explore the biggest obstacles to last-mile delivery and how to overcome them to gain an advantage. 

Some of the critical challenges that arise in last-mile delivery are as follows:

1. Lack of visibility: The primary condition for guaranteeing client loyalty is visibility into the delivery operations. Customers require full information regarding the whereabouts of their packages and the estimated delivery time.

2. High delivery costs: Customers and businesses both often pay a high price for last-mile delivery; setting up an infrastructure to facilitate on-time deliveries can be expensive for companies.

In case of e-commerce operations, customer cart abandonment rate rises because of high delivery costs. According to research, when faced with an additional shipping charge, 55 percent buyers leave their shopping carts.³

3. Late deliveries: This is one of the biggest challenges that shipping and delivery companies face. The failure to stick to predetermined timelines gets costly for businesses. The solution lies in creating a route-planning method and ensuring transparency and seamless communication at all levels.

4. Outdated technology: Nearly half of global transportation and logistics companies use outdated technology for last-mile delivery. GPS enabled transportation systems monitor the last-mile journey, predict any probable hurdles, and devise strategies for dealing with them.
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5. Poor route planning: For beginners, route planning can be complicated and difficult because there are many factors to take into account. Poor route design causes delivery to be delayed, which increases customer annoyance and raises expenses.

 6. Unpredictable factors: Random events can disrupt last-mile delivery when a packed commodity is in transit. The factors that are beyond your control include things like traffic, terrible weather, or vehicle faults. You must develop emergency strategies to address them while ensuring effective teamwork and open lines of communication with your clients. 

How to Overcome Last Mile Delivery Challenges

1.   Dynamic route planning is necessary to reroute the delivery vehicle after an unforeseen event. It is also necessary to keep track of which delivery truck will complete its runs and be prepared for subsequent runs later in the day or week.

2.   Real-time tracking of shipments and drivers is a useful feature for both retailers and end users. They can determine the driver's precise location and the anticipated time of order delivery.

3.   Complete consumer transparency: Immediately after receiving the customer's order, a last-mile delivery system offers them a tracking link. The consumer can track the status of their order in real-time by using this link, which makes the entire delivery process transparent. Subsequently, fewer calls would be made to the customer support line.

4.   Better delivery experiences and more customer engagement: A last mile delivery solution keeps you in touch with your customers. If an order is delayed due to bad weather or for any other reason, customers can receive real-time updates and warnings. An unparalleled delivery experience is made possible by the open communication between the merchant and the customer.

Final Word

To guarantee on-time deliveries of your products to your clients, last-mile delivery is crucial. Delivering goods on time without increasing the overall delivery cost may be impossible if you are unable to optimise routes, struggle to locate the ideal delivery location, or have difficulties arranging routes dynamically. Customers demand up-to-date location data for packages. They must see the entire last-mile process in action.

Notes:

1. The Last Mile Sprint: State of Mobility in Transportation and Logistics

2. Rethinking the Last-mile Strategy: Capgemini

3. Abandonment Rate Statistics 2022: Baymard Institute