With the rise of online shopping or e-commerce, last-mile delivery is becoming crucial for the supply chain of business. According to a report by Business Insider, last-mile delivery costs can account for 53% of the total shipping cost.
These numbers are an indication that for business last-mile delivery can be a huge expenditure and if a fleet management business can’t do it like the Quick Wheels Couriers LLC then their associated business will suffer. Quick Wheels Couriers LLC, is making sure to give the best last-mile services to their valuable customers by being their wings to fly higher.
Keep reading to understand the importance of last-mile delivery and the importance of its optimization to get the best results.
Understanding Last-Mile Delivery
What is Last-Mile Delivery?
Last-mile delivery can be defined literally as the last leg in the route of delivering products and services to end consumers from a distribution point or center. This stage is commonly the most costly and time-consuming stage in the delivery process as the delivery is multiple, and conditions are invariably different.
Challenges in Last-Mile Delivery
Last-mile delivery is vast and comes with many hurdles namely; traffic congestion, tight delivery windows, incorrect or imprecise delivery addresses, and high delivery expectations from the consumer. Moreover, they claim that the density of the population particularly in the urban centers raises practical challenges that complement the challenge of delivering the products.
Route Optimization
Advanced Routing Software
One strategy that can be used in last-mile delivery is putting in place sophisticated routing software. These systems involve procedures for identifying the best routes that can be used for delivery with reference to factors that include traffic information, delivery time period, and vehicle capacity. It can be noted that the optimization of routes plays a crucial role in decreasing fuel costs, shortening delivery time, and increasing performance.
Real-Time Traffic Data
Incorporating real-time traffic information is of advantage to delivery drivers since it enables them to change their routes and avoid traffic jam-prone spots. They add to the general help to be given in the reduction of delivery times and offer a solution to fuel expenses. The implementation of both the GPS and traffic data systems in the routing software can help inform drivers at the right time hence help make the right decision while driving.
Use of Technology
GPS Tracking
GPS tracking offers desired location updates of the delivery vehicles in a real-time environment. This technology enables firms to track deliveries and guarantees compliance with specific schedules they had set as well as convey the expected time of arrival to the clients. Also, with GPS tracking, companies can come across actual problems and issues concerning the delivery system.
Drones and Autonomous Vehicles
The issues on last-mile delivery include the usage of drones and or autonomous vehicles. They can go a long way in changing the delivery process because they do not depend on human drivers to make their deliveries; they offer faster services, particularly in areas that could be hard to reach. Currently, their use is limited and these forms of technology are still under experimentation; however, use in the future years is anticipated.
Enhancing Delivery Flexibility
Alternative Delivery Locations
Changing the attempted delivery point to a locker or a pickup point will increase options for last-mile delivery. At the customers’ convenience, they can pick up the packages at another nearby location, eliminating the need for multiple deliveries and increasing productivity.
Delivery Scheduling
The policy of enabling customers to select delivery time slots is useful because it assists in determining the time when the deliveries will take place in relation to customers’ schedules. This decreases the chances of the onPostExecute() method not being called to deliver the result or completing the first attempt of passing the result. Other solutions that can be offered to customers include giving them time-based updates on the delivery and also allowing them to reschedule the delivery.
Improving Communication
Customer Notifications
The main tasks of the strategy are to provide effective communication with consumers and improve last-mile delivery. Informing the customer about the status of their consignment and the expected time of delivery or delivery delay can help relieve the concerned customer’s mind. The information regarding the tracking of the delivery can be communicated to the customer in real time to enable him or her to make relevant arrangements.
Feedback Mechanisms
The incorporation of feedback management provides customers with options for expressing their opinions on their delivery experience. Such feedback can be very useful to companies in the sense that it would hint them toward the specific areas that they have to work on in order to improve the efficiency of their delivery model. Promoting the use of customer feedback in own and the organization’s continuous benchmarking can improve organizational service standards hence enhancing customer satisfaction.
Inventory Management
Real-Time Inventory Visibility
One important last-mile delivery factor is the ability to have live information on the available stock at the distribution center. The exact location and quantity of inventory enable the company to release products at the right time basin stock out situation. It is a good idea to conduct monitors of inventory management that give real-time information to foster better discharge of deliveries.
Distributed Warehousing
Another way to decrease the distance between the distribution point and the end customer is thus to set up a system of distributed warehouses or fulfillment centers. Besides, it minimizes the amount of time it takes to transport the products while at the same time cutting down on costs. Another reason is to increase the effectiveness of the last mile of delivery; companies can do this by placing their warehouses in areas with high demand.
Workforce Management
Training and Development
There is also the need to ensure effective training and development aboard for the delivery drivers to enhance the delivery of last-mile services. Particularly, knowledge and skills in driving more economically, consumer relations, and technology applications should be trained among the drivers. Weekly training sessions and performance appraisal meetings should be held to ensure that employees are kept on their toes and the efficiency gains are kept up.
Incentive Programs
Incentive plans for delivery drivers are also useful in ensuring the drivers give their best on the job. Providing incentives to employees concerning the on-time delivery of consignments, lowest fuel consumption, and customer satisfaction can result in improved behavioral performance of the drivers and contribute to the enhancement of delivery processes.
Sustainable Practices
Electric Vehicles
A shift to using electric vehicles for last-mile delivery results in impactful decreases in the amount of CO2 emissions and expenses. While using electricity, an EV is environmentally friendly because it has no emissions compared to the traditional gasoline vehicle. Moreover, improvements in the batteries’ technology are also helping EVs to become suitable for delivering over long distances.
Eco-Friendly Packaging
A company can choose to use packaging material that would have the potential of being recycled or is biodegradable so that the amount of waste that would be produced would be relatively small. Another visibility advancement is the option of making packages lighter to serve the purpose of achieving better deliveries.
Conclusion
By now you must have understood the importance of optimizing last-mile delivery for several aspects of business. Quick Wheels Couriers LLC is making sure to improve your business efficiency by being an integral and trustworthy part of it.