Note: Today’s post is part of our ‘Editor’s Picks’ series in which we highlight recent posts from our sponsors that provide supply chain insights and advice. This article is from FarEye and examines the challenges of 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 destinations and delivery times unknown until a consumer places an order. Combine that with various fulfillment and fleet types shippers can choose from and the process becomes even more complex and difficult.
Getting the right delivery experience is of utmost importance to shippers and carriers in an increasingly e-commerce driven world. Product and price are no longer the only considerations for winning sales and delighting consumers. Delivery has taken center stage as a key factor that consumers value when deciding where to buy their products online. An excellent delivery experience is a great competitive advantage.
Supply chain leaders, whether e-commerce retailers, grocery chains, restaurants, or manufacturers, need to rethink their last-mile delivery strategy. Businesses need to dramatically simplify the most complex aspects of delivery logistics, especially in the last mile. For shippers and carriers, the right last-mile delivery experience is critical in an increasingly e-commerce driven world.
What is last mile delivery?
Last-mile delivery is the last step in the e-commerce supply chain that physically connects brands to consumers through the delivery of the purchase. Goods are transported from a warehouse or distribution center and arrive at the consumer’s home, business or parcel locker. For the shipper, last mile delivery is the most complex and expensive part of the product journey.
The goal of superior last mile delivery is to enable every delivery to reach its destination every time, on time, with precision, efficiency and sustainability.
The objectives of last mile logistics
Last-mile logistics allow brands to get their products to consumers quickly and affordably. 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 right delivery experience is of utmost importance to shippers and carriers in an increasingly e-commerce driven world. Product and price are no longer the only considerations for winning sales and delighting consumers. Last mile logistics has become a key factor that consumers evaluate when deciding where to buy their products online. An excellent delivery experience is a great competitive advantage.
Companies need to significantly simplify the most complex aspects of their last mile logistics. Supply chain leaders, whether e-commerce retailers, grocery chains, restaurants, or manufacturers, need to rethink their last-mile delivery strategy. For shippers and carriers, the right last-mile delivery experience is critical in an increasingly e-commerce driven world.
What is the last mile problem?
Last mile operations have never been so complex. Increasing variables in how, where, and when outbound and inbound deliveries give shippers and carriers greater flexibility, but they also provide greater last-mile complexity.
Multiple challenges contribute to the last mile problem. One of the challenges for shippers and carriers is inefficiencies, which contribute to last-mile spend. Another challenge is providing real-time visibility into a delivery’s location for all stakeholders.
Amazon has set the bar high with its ever-increasing ability to deliver in shorter lead times while still informing the consumer of in-transit delivery details. Brands with and without their own dedicated fleets are striving to live up to the “Amazon Effect” and meet the delivery dates and times promised to consumers.
Consumers want visibility into their deliveries, but they also expect faster delivery speeds. Keeping all stakeholders satisfied while delivering in ever shorter timeframes in the most cost effective and efficient manner is the last mile problem.
In short, the problem of last mile delivery impacts all companies. In today’s world, every business wants to deliver products quickly and efficiently and provide a superior customer experience while working in an increasingly complex and competitive environment.
To read the full article, click here.
