At the current time, the logistics industry is quite flourishing and there is always a demand for effective & faster service.
This is the reason last-mile delivery has become an important part of supply chain management.
Last-mile logistics refers to the process in which the goods & products are transported from the warehouse to the address of the customer.
So, if you are looking for last mile delivery, then it is always recommended that you opt for a good company that has experience in handling it. One such company is WeAreWarp.
They are backed with great supply chain visibility & experienced team that can efficiently handle your last-mile logistics requirement.
So, in this blog, we would talk about how to overcome the challenges of last-mile logistics. Let us have a look:-
What is the last mile problem referred to?
The last mile logistics objective is to deliver the items in the shortest period.
But, the problem is that customers want the deliveries to be fast.
Further, the last mile is considered a time-consuming & expensive part of the supply chain process resulting in 53% of the total shipping cost.
Hence, if inefficiency is added to the last mile process, then deliveries can become a lot more costly.
What are the key problems associated with last-mile delivery?
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Transparency is not present
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The cost associated with last-mile deliveries
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Deliveries failure
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Inefficient route optimization
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Transit unpredictability
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Proper Delivery Infrastructure is not present
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Delivery tools & technologies are outdated
How can communication issues cause poor decision-making in the last-mile process?
It is seen that most of the last-mile problems happen due to the miscommunication that takes place between various delivery stakeholders.
Further, businesses tend to use the physical infrastructure of the carriers for instance transport systems & warehouses such that service quality can be enhanced without investing in it.
The problem happens when the warehouse managers tend to face problems in maintaining the inventory which results in delivery & shipping delays.
So, if you opt for a platform that can provide you with real-time information, then logistics challenges can easily be tackled by businesses.
For example, if a particular route is having traffic issues, then the vehicle can be routed in a different direction such that delay can be avoided.
Also, the platform is equipped with intelligence tools that can assist businesses to track & analyze performance based on order completion, journey time, customer satisfaction, transportation costs, etc.
All these platforms can be easily customized for various platforms such as last-mile delivery tracking systems or inventory. Likewise, all the information would be available in a single dashboard which you can access in real time.
What are the ways through which last-mile problems can be addressed?
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Customer-Warehouse Proximity needs to be improved
The last warehouse or distribution center should be located near the customers. In this way, a lot of money can be saved in the long run, and also helps to minimize the cost, delivery times & fuel usage.
Likewise, if the warehouse is proximate to the regions where you get the bulk of the orders, then the last-mile problem can be easily tackled.
In this way, warehouse operations ROI can be boosted as inventory management can become less time-consuming & seamless.
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Investing in the new technologies
With the help of new technologies, process improvements can take place as real-time information can be analyzed in a much better manner for decision-making.
These technologies make use of AI-based solutions & machine learning for driver allotment, route navigation, etc.
All these help out businesses to boost ROI save on operational costs as well as reduce time on the supply cycle.
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Optimize the Dynamic Vehicle Routing
If the route planning is done in the right manner then delivery times can be cut down dramatically.
Thus, it is recommended that you invest in software such that routes can be scheduled automatically based on two routes.
You should also take into account several parameters such as location, time, traffic, and vehicle capacity such that efficient routes can be recommended.
Additionally, any update related to traffic can be communicated directly to the delivery driver on a real-time basis and thus dynamic routing of the fleet can be done.
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Real-time communication with the customers
In the current time, modern customers look out for flexible deliveries as they are not always available to get the orders.
Therefore, customers must be informed alongside regular notifications during the shipping process such that they become aware of the status of their package.
This can prove to be quite beneficial for the customer as well as the driver as it ensures the availability of the customer.
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Real-Time Delivery Tracking System
Real-time delivery tracking assists customers & companies to track the package status until it reaches the final destination. With the help of tracking, companies can share updates regarding deliveries in real time.
Also, it is seen that several problems such as route optimization issues, missed schedules, and lack of delivery proof can cause a significant effect on business & customer experience.
So, you can very well deal with the biggest challenges if a real-time delivery tracking system is installed.
What are the benefits of the last-mile solution?
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Same-Day & Faster Deliveries
Several customers tend to prefer delivery during the same day or within a few hours. So, last-mile delivery can very well help out in this fact through scheduling, prioritizing & auto-allocation of the packages.
Other than this, it allows you to change the location of deliveries or time as well as handle the returns or cancelations using the following solution.
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Delivery profitability & improving the margin
Last mile solutions are backed by analytical tools through which the data can be analyzed in real-time.
Apparently, it also guides the businesses such that weak points & areas of improvement can be understood.
Apart from this, it can help to improve the margin as well as the profitability.
All of these are done by reducing fuel consumption, turnaround times & operational expenses.
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Visibility of the Delivery operations
Another benefit is that it helps out capturing the dispatch information in real-time and it can be made accessible to the customers through notifications, alerts & data processing systems.
Hence, all of these results in complete operations transparency, and thus customers can be updated about the movement of their goods.
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Customer experience is enhanced
With last mile delivery, you get the tools that can provide customers with real-time updates regarding their orders.
The updates can be sent through SMS, email, WhatsApp, or phone call and inform the customers regarding any kind of delay in cancellation & delivery.
So, it is seen that if effective communication is done with customers then it can lead to an increase in customer satisfaction as well as steady business.
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Route Planning is automated
Last mile delivery helps out in the automatic planning of the route for various shipments based on the preferred delivery time of the customer, deliverable points as well as the shortest routes such that fuel costs can be saved.
Besides this, it helps out in planning the best possible route by taking into consideration several factors such as weather conditions & traffic.
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Smaller Footprint of Carbon
Fuel costs & empty miles can be significantly reduced by implementing auto-scheduling & effective route planning.
Also, the use of battery-operated & electric vehicles for final mile delivery can help out in generating a smaller footprint of carbon.
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Greater Productivity in Delivery
With Route optimization & Auto scheduling load time in routes can be significantly reduced.
This helps out businesses to get great delivery productivity.
Further, advanced geo-locating tools help out businesses enhance the accuracy of the address as well as reduce delivery attempts while increasing the first-attempt delivery success.
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Enhanced Reverse Logistics
Reverse logistics deals with the goods that are returned by the customers.
So, with last-mile delivery customers can return the orders seamlessly, and hence consumer confidence is boosted.
Final verdict
Last-mile delivery is considered the most complex part of the supply chain process. So, businesses need to put in a good last-mile delivery solution such that customers can be kept happy and in turn boost long-term business success.
Thus, you ideally need to select a good last-mile logistics provider.
One such organization is WeAreWarp which holds over a decade of experience in this industry. Thus, you can expect top-notch service from them.
So, you can connect with them through call or email to discuss your next project.
