What is Last Mile Logistics?

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Last mile delivery is the term that has captured the market in short span of time. Everyone is either way familiar with this term of is willing to understand it as soon as possible. Last mile logistics has opened up new horizons for the growing industries especially related to ecommerce vertical. No one could have ever thought that last mile delivery would go to such great height. Those who are new to this term lets have a simple understanding of this vertical.

What is last mile logistics?

Last mile delivery is the last and the most crucial part of the supply chain. In this, good or services reach down to the end customers by means of delivery. The process of collecting goods or services from vendors, centers or warehouses and finally supplying it to the end customers is known as last mile delivery.  But, you should not get confused with its name, it is not just limited to just a mile. Last mile delivery service may vary from product to product and company to company for its delivery options and feasibility.

Last-mile logistics allow shippers to quicker and cost-effectively bring more goods to customers, both important e-commerce and other supply chain issues. Last mile logistics refers to the final phase from a fulfillment center or warehouse to the end-user of the delivery process. Although the name suggests this, it is the last delivery mile, but the actual delivery of the last mile can vary from a few blocks to 50 or 100 miles.

As with all the industries there are a ton of reasons that affect the growth of last mile logistics. We will find out these factors that decide the success of last mile logistics.

Factors Impacting Last Mile Delivery

Infrastructure

The infrastructure of the region of delivery matters a lot while delivering the products. Delivery may not go as planned if the infrastructure is not up to the mark. Suppose if you go for a delivery in a region having improper routes, non-smooth roads the delivery will be little different than the proposed one. You will be having extra cost of fuel and time taken will be more to deliver the products or services.

Technology

Technology plays major roles in every industry in this digital era. Everyone is busy with their smart phones, surfing internet and shopping online. Every ecommerce business will require a great last mile delivery service to deliver the products from their warehouse or vendors to the final customer who ordered it. In this competitive market customers are very much fascinated with the things like live order tracking etc. If your delivery process is not equipped with the recent technology and software integrations, then you can have low customer retention. For a good customer experience, live order tracking is must these days. Also, live order tracking is a good option to attract customers and attain a good consumer experience regarding your services.

Transparency

It is one among the most challenging tasks in this vertical in supply chain. It is a real hard practice to maintain a full transparency for customer’s right from the point of order placement to final delivery. Customers like to see full transparency these days like how much time will it take, current order tracking, etc.

Product Type

What kind of product is being delivered to the user plays a significant role in time of delivery. The delivery of goods like antiques, glass items, art work, and other fragile products require special attention while delivering them. Also, these kinds of articles also need to be packed very effectively and loading and unloading needs to be done with a proper caution.

Security

When customers decide to leave their purchased goods in your hands and trust you to have them delivered in a timely manner, there is a significant risk involved. You have won half the fight if you provide an assurance that they will arrive safely. But if you have an enticing insurance benefit on the off chance that the package is mishandled, you will most likely get your company moving. This is why delivery companies incorporate a comparatively low insurance surcharge, with some providing up to a certain amount of a warranty already included in their rates in case the items are damaged or lost during transit.

Some easy ways to overcome the possible challenges in Last Mile Delivery

Real Time Tracking

Use technology enables delivery process to get the best experience for your end customers. Real time tracking is a great way to provide the complete transparency to your users. It basically means that any end user with help of a unique id and entity will be able to login the system and see the status of the product. In simple words we can say that any customer can track the order details with a unique tracking id. Customers can see the time left to be delivered, where the order has reached and order details specific to the delivery of product of the customers. It is a great way top offer process transparency and get the best trust winning factor of customers.

GPS enabled Route optimization

Better technology for route optimization can also help minimize woes over last mile capability while reducing costs of the last mile. You can use GPS assistance for your every delivery so that you don’t waste time on ineffective routes and get stuck in heavy traffic. Shippers can also give truckers who are looking for career opportunities and positions with less regulations and rules better incentives.

Summary

Last mile delivery is the need of the hour. No organizations form ecommerce to healthcare can survive in this digital era without reliable last mile delivery services. Last mile delivery is the only part of supply chain that comes in direct contact with the end customer, making it the most valuable part of supply chain. The better the last mile delivery is, the better will be the customer experience. For obvious reasons, better customer experience means a better brand value and business growth.

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