As customers increasingly rely upon eCommerce for all of their buying requirements, rapid fulfillment and delivery are no longer a “nice to have”—they’re a must for every online shopping experience. And logistics businesses and their retail partners must make this a priority if they want to combat the ever-present threat of Amazon Prime.
Consequently, companies are rushing to create new technologies and experimental supply chain models to boost package volume, speed up delivery, and satisfy consumers, all while attempting to reduce costs. Unfortunately, same-day, final-mile delivery is one of their significant expenditures and obstacles.
What is the final mile delivery concept?
Delivery of goods from a distribution center to a customer’s doorstep, or “last mile logistics,” is known as last-mile delivery. When it comes to last-mile delivery, the goal is to get packages to their destinations as cheaply, quickly, and accurately as possible. Something that Route4Me carbon-neutral last mile has been doing. The process may seem easy, but it’s rather challenging to do.
Most of your shipping costs will be spent on the last leg of your product’s journey. Your company’s profits might be eroded if you don’t improve your method. To respond to increased client demand, businesses are considering this critical step.
Whether it’s a private residence or a retail establishment, the supply chain must reach its final destination with lightning speed to keep customers happy. It is important to focus on the last mile of the journey from the transportation hub to the final destination since this is the most expensive part.
Due to the continuing epidemic, the ever-complicated last-mile delivery will become more chaotic in 2020. When companies were having to adapt to shifting consumer demands such as speedier and same-day delivery, new difficulties such as contactless delivery, cashless payments, and health updates emerged. Customers that are savvy need complete visibility into the fulfillment process.
Clients need updates on where their order is, who will deliver it, and when they can expect it. In addition, shoppers want companies to provide flexible delivery. Modern customers are more loyal to businesses that provide an adaptable online purchasing experience and accommodate client convenience. Supply chain professionals must reevaluate their last-mile delivery strategy to meet these requirements. To balance customer experience and economics, conventional hub-and-spoke logistical methods will not suffice.
The digitalization of core retail last-mile delivery operations will significantly impact the future of retail businesses, eCommerce providers, grocery store chains, restaurant chains, and manufacturing companies.
How to enhance the last mile
Many customers are already acquainted with local crowdsourcing services via digital platforms like Uber, Airbnb, and Postmates due to the advent of the gig economy. Location-based crowdsourcing lets clients hail a cab, book a hotel, buy coffee at work, hire a handyman to fix a TV, send flowers, or order takeout as they enter their apartment.
The crowdsourcing approach has been widespread in transportation, hotel, and food delivery, and retailers are eying its inexpensive starting costs, asset-light operations, and enhanced customer experience to alleviate their last-mile delivery difficulties.
Using crowdsourcing technology, merchants, logistics partners, and customers may interact directly with non-professional, local couriers using their vehicles to make deliveries. Companies may expedite the delivery of online orders to clients, and customers can get things when and where they like. The ability to make on-demand and planned deliveries ensures that clients are home at the time of delivery, minimizing the need for a second (or third) delivery effort.
And with the increasing integration and improvement of automation across sectors, it is conceivable that delivery robots, drones, and autonomous vehicles will be making many of these deliveries in the near future.