For those in the logistics industry, last-mile delivery has always been a challenge. An increase in online shopping and a global pandemic has only made last-mile delivery more difficult.
Fortunately, these challenges can be overcome, and they should be if you want a piece of the $861 billion eCommerce pie. Here are a few of the issues with last-mile delivery, and how they can be solved.
What Is Last-Mile Delivery?
As the name suggests, last-mile delivery is the final step in the delivery process before goods are handed off to a customer. It may also be referred to as final mile delivery.
Last-mile delivery is supplying the customer (either B2B or B2C) with the experience they expect.
Challenge #1: The Cost
Last-mile delivery is the most expensive part of each good’s trip. The last mile could be a few miles, a few dozen miles, or a hundred miles.
Another additional cost to delivery is “free” shipping. It’s not actually free, but consumers dislike paying additional fees for shipping. That means the fees have to be handled by someone else in the supply chain.
Challenge #2: Increased Expectations
The expectations for last-mile logistics have increased. This is due to Amazon and their competitors, who have offered faster and better shipping options over the years. Amazon Prime members pay a set price for a host of benefits, including free 2-day shipping.
In some larger markets, Amazon may even offer same-day delivery on select items.
Retailers want the ability to offer their customers speedy shipping. It leads to customer loyalty. And customers want to get their packages securely, which is why securing packages is important.
Challenge #3: The COVID Pandemic
The COVID pandemic led to a new challenge for the logistics industry. Due to more people being at home, online shopping has surged, leading to an increased demand for deliveries.
Many of these customers may have lost their job or been affected financially. They are even more hesitant to pay for shipping.
The health and safety of your employees and your customers have to be your top priority. Supply chains need safety at their core.
Customers also expect safe, contactless delivery. So every part of the supply chain must be safe.
How a Last-Mile Carrier Can Solve These Challenges
These challenges are difficult, but they aren’t insurmountable.
Technology such as route optimization software can help speed up your deliveries. Route optimization helps you avoid traffic congestion and find the fastest route to your deliveries.
Delivery management software can provide customers with an easy way to track their shipments. They can receive an ETA on their shipment as well as real-time updates.
You can also outsource your delivery service. If your company is struggling to meet increased demands you can outsource delivery and boost your fleet size.
How Genex Can Help
If you’re struggling to make last-mile deliveries, we can help. Genex offers both full and less than truckload solutions to help meet the increased demand of online shopping.
We also have warehouse and crossdocking solutions for dry and refrigerated goods.
Get your quote today.