What Causes Issues With Last-Mile Delivery?

Delivery Costs

It has been estimated that more than half of the total transportation cost for a shipment is spent on the last mile. When shipping a large number of goods from one port to another, or one hub to another, the infrastructure is already there. However, when shipments need to be broken down into small, individualized packages and disseminated to various customers and clients, it becomes much more complicated.

Delivery vehicles have little to worry about when driving on the highway; this network is designed for efficiency and has existed for decades. Leaving the highway is when problems arise. Navigation, local traffic, multiple stops, weather, gate codes, and similar issues can all lead to an increase in mileage and time on the road. The only way to solve this is with expert routing, which requires immense amounts of data, mobile and cloud infrastructure, and analysis via machine learning.

Time Constraints

Another challenge in last-mile delivery operations is late deliveries. A business’s reputation with its customers is influenced by its ability to meet delivery timing commitments. Customers have become accustomed to rapid delivery for just about anything they may need or want. Because of this, businesses have adopted numerous process and technology improvements — both within their warehouses and in their delivery operations — to meet these expectations, including JIT (just in time) or drop-shipping models, as well as waveless operations and numerous other innovations. In this new environment, customers expect clear and accurate ETAs. Everything up to the last mile is relatively easy to predict, but the processes and technology that many teams use for shipping are decades old now and don’t meet the demands of last-mile consumers. In order to improve on-time performance for last-mile deliveries and meet customer time constraints, modern cloud-based technology is required.

Communication

Client communication in last-mile delivery is paramount. Regardless of the purchase price, when customers order from a retailer or a local pizza chain, they now expect automated updates or a live feed of where their delivery is geographically. While that has become the norm for people in their personal lives, it is only starting to be adopted by many business-to-business and business-to-consumer operations.

Knowing exactly where a shipment is and/or when it will arrive is the emerging standard for customer communication and improves customer service significantly for last-mile delivery.

What Businesses Are Most Affected By Last-Mile Delivery Issues?

Food & Beverage

The food & beverage industry relies on last-mile delivery optimization to maximize efficiency and manage costs. Many distributors in this industry distinguish themselves from their competitors with customer service. Ensuring that clients receive goods on time and have clear communication along the way is vital to the food & beverage industry. For a food & beverage fleet to be successful it must:

• Use highly optimized delivery routes that maximize fleet utilization
• Consistently meet customer’s estimated delivery time windows
• Minimize refusals
• Provide delivery visibility and clear communication to customers
• Decrease fleet miles
• Accommodate both planned and on-demand orders

Learn more on how this can be achieved through last-mile route optimization.

Parcel & Courier

Companies in the parcel & courier industry rely on last-mile delivery software and route optimization to decrease late arrivals and reduce fleet miles. Parcel and courier businesses are the heart of our modern economy and handle everything from the pharmaceutical industry to e-commerce sites. These businesses must have the following in order to be successful:

• Optimized multi-stop route planning including both customers and return trips to warehouses
• Clear communication and visibility for customers to ensure client satisfaction
• Consistent ETAs that prevent late arrivals and refusals
• Flexible routes that can handle sudden changes in orders and delivery needs

Learn more on how this can be achieved through last-mile route optimization.

Retail

The retail industry and its delivery partners have been pillars in the efforts to optimize last-mile delivery. Retail continues to see growth every year in sales volume across both brick and mortar shops as well as online. Retail distributors need a system that provides:

• Responsive routing that can be updated in real-time to handle the ever-changing nature of delivery schedules.
• Clear communication with both customers and businesses that are receiving deliveries.
• A customer portal that provides seamless communication and automated messaging.
• Integration options for existing third-party systems

Learn more on how this can be achieved through last-mile route optimization.

Auto Parts

The auto parts industry operates with high demand and quick turnaround. Parts are ordered as needed, often daily, which makes predicting deliveries and route planning a challenge. Auto part distributors need a system that can:

• Seamlessly manage and plan on-demand orders
• Provide real-time route optimization to help drivers accommodate on-the-fly orders
• Provide visibility to customers and clients and ensure that they have accurate ETAs
• Integrate with existing third-party systems

Learn more on how this can be achieved through last-mile route optimization.

What Is Last-Mile Delivery Software?