Ways to Improve Last Mile Logistics

With the rising demand for online shopping, the importance of last-mile logistics is also increasing every day. Consumers focus on having an outstanding delivery experience whether they buy a giant TV or a simple pen. Study shows, 80% of the customers expect to have the ability for real-time delivery tracking.

This results in eCommerce businesses changing the way they operate to accommodate & adjust the new mindset. This is where the importance of last-mile delivery logistics comes. The investment in last-mile delivery has never been more critical than today.

Last-mile delivery logistic refers to the term when business houses & e-commerce rely on a local warehouse to keep their products & deliver them in a hassle-free manner to the customers’ doorsteps. 

This article is written to discuss the ways to improve last mile logistics & the impact on your business.

1. Give your customers the option to choose

Your satisfied customers are the stepping stone to your success. So, if you give a portion of your power to your customers, like giving them the authority to choose from several delivery options. This can improve the last-mile delivery experience for them in two ways. Such as-

• Customer satisfaction: customer satisfaction depends on the fulfillment of their delivery need, i.e., the time delivery, customization, extra care in handling the product. If a customer has access & command over these things, he/she is likely to get delivery satisfaction.
• First-time success: if customers can choose the delivery day & time according to their convenience, the probability of getting first-time successful delivery increases like the customer will be present while receiving the order.

2. Prioritize customer communication

Good customer service along with customer communication should be the topmost priority of any company. Giving priority to customer communication is as important as giving them the power to choose their delivery time & date. If a company focuses on increasing communication, customers can raise concerns over their orders if any.

A continual communication assures customers about their products & location throughout the supply chain until it is delivered. If any raised concern is fulfilled efficiently & timely, the consumers will have that confidence & trust in the company regarding last-mile delivery services.

3. Use an advanced algorithm

If you incorporate a highly developed algorithm for last-mile delivery services, it is bound to improve with time. Systems will use digital mapping to calculate the most effective route to deliver the product following the collection sequence with accurate journey time.

A highly developed algorithm will also allow distributing products to the particular vehicle under particular drivers. This procedure ensures that the schedule is geographically feasible with the estimated arrival time. Hence, the route will also be optimized & empty running will be reduced.

4. Monitor driver performance

Improvement in the last mile delivery experience will get another level if you consider monitoring drivers’ performances. Keeping an eye on them includes, service times, on-time rates, customer feedback, total distance traveled & the number of parcels delivered, etc. 

Recording data like these will help to identify opportunities to improve drivers’ safety along with customer experience. You can even have overall data to track how the business is improving over time.

6. Partner with a third party vendor

Third-party vendors play a crucial part to fulfill the orders for companies & meeting the goals for companies when it comes to shipping products in bulk. The vendors take the responsibility of delivering the products to the nearby warehouse of the customers from the company warehouse.

Third-party vendors or 3PL are responsible for the final transportation & fulfilling last-mile delivery. The significant benefits are:

• Decreases shipping cost: A 3PL located in the nearby area from where the huge consumer demand comes, saves a lot of cost for the main company. This will meet the highest demand & increase the profit because the whopping shipping cost can be avoided.
• Meets sudden demand: now, if the main company faces a sudden increase in demand & thereafter sales volume, the timely delivery of the products can be pretty difficult for it. a third-party logistic will allow meeting those demands promptly.
• Improves customers’ satisfaction: partnering with third-party logistics will increase the chance of customer satisfaction. That will increase the demand by improving service along with reducing delivery time. This will boost performance & profitability.

7. Centralize logistic data

No matter how much data you witness in your fleet, external carriers & aggregators sites, etc. If it is not organized, there is not much you can do with it. Now, if you put all the data in one centralized location, the business will improve by understanding the ins & outs of the last mile delivery process. Also, they will make adjustments & continually improve.

These are 7 tips to keep in mind to improve the last-mile delivery experience for your customers.