Are you looking for the quickest and most efficient way to get your product from the warehouse shelf to your customers’ hands? The best way to do so is with last-mile delivery.
The concept for last-mile delivery is simple, deliver products to the end-user as fast as possible. However, the last mile of the delivery process is the most expensive part of the entire shipping process, so ensuring it is done correctly is a must.
In the past, last-mile delivery consisted of distributors and manufacturers moving their products from the warehouse to a retail store. With the massive growth of e-commerce, amounting to a 44 billion dollar market in 2018 (Source), last-mile delivery now requires more efficiency and speed to get to the consumer’s doorstep as fast as possible.
This article will cover the steps involved in last-mile delivery, how it can help your business, and more.
Last-mile delivery is the journey a package takes from the warehouse to the delivery vehicle, to the customer’s doorstep. “Last-mile” refers to how the product is brought the first to the last mile of the delivery process. While last-mile delivery is the best way to ensure customer satisfaction, it is also the most costly part of the shipping process. As a business, you want to be sure that this process is as quick and efficient as possible to encourage repeat purchases and save on money.
On average, the cost of last-mile delivery is comprised of 53% of the overall shipping costs. With the rise of e-commerce, the appeal of free shipping that most businesses now offer causes customers to pass on a product that charges for shipping, forcing retailed and logistic partners to pay for shipping rather than lose potential customers. On top of paying for shipping, last-mile delivery in the e-commerce world involves many small orders going to different locations, which significantly increases the price of the process.
Because of the cost, last-mile delivery is constantly growing and evolving to implement better systems to satisfy both customers and businesses.
Last-mile delivery empowers you as a business to optimize and enhance your end-to-end logistics operations to be as efficient as possible. To give you a better idea of what last-mile delivery can do for your business, we will break down some of its features.
With last-mile delivery, your customers can change location and time of delivery, which will significantly improve customer service. The change of time and delivery is easily done on the business side of things by quickly changing and updating workflows based on customer needs.
Thanks to technology, customers and businesses can benefit from electronic proof of delivery. Electronic proof of delivery helps archive data, analyze customer feedback, simplify audit processes, reduce errors, and also allows the customer to sign receipts electronically.
Dynamic routing allows businesses to track delivery drivers and fleet in real-time by sending electronic notifications when vehicle idling, unnecessary diversions, or prolonged stops occur. Dynamic routing also optimizes delivery routes by tracking traffic, weather, one-way streets, and more.
Delivery managers track ground-level delivery activities in real-time to quickly address any inconsistencies. Monitoring ground-level delivery operations are one of the most significant factors in the last-mile delivery process.
The last-mile delivery process must be performed flawlessly to ensure that the product reaches the end-user quickly and efficiently. To better illustrate the process, here is each step broken down:
1. Order is received digitally and enters the business’ system; this is the part of the process when the end-user gets a tracking number, if available.
2. The transportation hub is notified of the order, then the order is packaged and awaits delivery - this is the first mile in the last-mile delivery process.
3. The order is designated to delivery personnel based on the location of the end-user. The order must be strategically sorted and designated to facilitate an optimized and cost-effective delivery.
4. The order is scanned before it is brought to a delivery vehicle. From here, each step of the product’s journey will be monitored and sent to the end-user, which also reduces the risk of the product being lost along the way.
5. The order reaches the end-user, and proof of delivery is obtained.
Last-mile delivery has become one of the essential steps in the shipping process due to the constant growth of the e-commerce industry. Businesses must constantly innovate so they can save a much as possible while also appeasing customers. Many customers shy away from paying for shipping as they know most retailers now provide free shipping - that is why it is crucial to have comprehensive last-mile delivery in place.
At FlexSpace Logistics, we offer comprehensive last-mile delivery solutions across Canada, so regardless of the location of your business, we will have the resources to accommodate. We will handle your shipping and logistic needs with care so you can get back to the more pertinent aspects of your business.
If you’d like to get started, get a quote today, or contact one of our FlexSpace Logistics advisors to find the right solution for your business at 1-844-985-3539.