Note: Today’s post is part of our “Editor’s Choice” series where we highlight recent posts published by our sponsors that provide supply chain insights and advice. This article is from FarEye and examines the challenges around last mile delivery.
With the continued growth of e-commerce, last mile delivery has become more important than ever for consumers and more complex and challenging for shippers. The last mile is typically the most expensive leg of the entire supply chain, accounting for 53% of overall shipping costs. The last mile is also unpredictable, with delivery destinations and timelines unknown until a consumer places an order. Combine that with various fulfillment and fleet types for shippers to choose from and the process becomes even more complex and challenging.
Getting the delivery experience right is of utmost importance for shippers and carriers in an increasingly e-commerce-driven world. Product and price are no longer the only considerations to winning sales and delighting consumers. Delivery has taken center stage as a key factor that consumers evaluate when deciding where to purchase their online goods. A great delivery experience is a great competitive advantage.
Supply chain leaders, whether e-commerce retailers, grocery chains, restaurants or manufacturers, need to revisit their last mile delivery strategy. Companies need to dramatically simplify the most complicated aspects of delivery logistics, especially in the last mile. For shippers and carriers, getting the last mile delivery experience right is critical in an increasingly e-commerce driven world.
What is Last Mile Delivery?
Last mile delivery is the final leg of the e-commerce supply chain that physically connects brands with consumers through the delivery of the purchase. Goods are transported from a warehouse or a distribution center and arrive either at a consumer’s home, business, or parcel locker. For the shipper, last mile delivery is the most complex and expensive part of the product’s journey.
The goal of superior last mile delivery is to enable every delivery to reach its destination every time, on time, accurately, efficiently, and sustainably.
The Goals of Last-mile Logistics
Last-mile logistics enable brands to get their products to consumers quickly and cost-effectively. Shippers have begun to focus on refining their last-mile logistics, especially as e-commerce and omnichannel retail continue to grow. The goal of last-mile logistics is to enable brands to create the best possible last-mile delivery experience for consumers.
Getting the delivery experience right is of utmost importance for shippers and carriers in an increasingly e-commerce-driven world. Product and price are no longer the only considerations to winning sales and delighting consumers. Last-mile logistics have taken center stage as a key factor that consumers evaluate when deciding where to purchase their online goods. A great delivery experience is a great competitive advantage.
Companies need to dramatically simplify the most complicated aspects of their last-mile logistics. Supply chain leaders, whether e-commerce retailers, grocery chains, restaurants or manufacturers, need to revisit their last-mile delivery strategy. For shippers and carriers, getting the last-mile delivery experience right is critical in an increasingly e-commerce driven world.
What is the last mile problem?
Last mile operations have never been so complex. Increased variables in how, where and when deliveries depart and arrive are giving shippers and carriers alike greater flexibility, but they also provide greater complexity to the last mile.
There are multiple challenges that contribute to the last mile problem. One challenge for shippers and carriers is a lack of efficiency, which contributes to the expense of the last mile. Another challenge is providing real-time visibility regarding a delivery’s location for all stakeholders.
Amazon set the bar high with its ever-increasing ability to deliver in shorter time frames while also notifying the consumer about the transit delivery details. Brands with and without their own dedicated fleets strive to live up to the “Amazon effect,” and adhere to the promised delivery dates and times for consumers.
Consumers want visibility into their deliveries but they also expect faster delivery speeds. Keeping all stakeholders happy while delivering in increasingly shorter time frames in the most cost-effective and efficient manner is the last mile problem.
In short, the last mile delivery problem impacts all companies. In today’s world, every company wants to deliver products quickly, efficiently and provide superior customer experiences while working in an increasingly complex and competitive landscape.
To read the full article, click HERE.
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