What is Last Mile Delivery?
Last-mile delivery is the final step in the delivery of a product. The logistics company handling last-mile delivery aims to see that the product reaches its destination safely. Nowadays a majority of transport companies want to make the last mile delivery their biggest advantage. In fact, the last mile of the product also covers 53% of the actual shipping costs. Let us read about Last mile delivery and how a transport company near me aims to accomplish it.
What are the problems associated with last-mile delivery?
As mentioned, Last mile delivery is the last step in the delivery of the product. On top of that, this stage is also the most expensive. In fact, it accounts for more than fifty percent of actual shipping costs.
The last-mile delivery is challenging because the drivers have many products to deliver. That implies difficult routes, more idle time, and extra time on the road. To ensure everything happens smoothly, companies have to maintain more delivery vehicles and better coordination. Apart from that, if there are multiple products, the entire process becomes more complex.
Which businesses get most affected by a last-mile delivery
Some businesses face the most problems because of last-mile delivery. These include:
- Warehousing and distribution services
- Third-party logistics companies
- Courier companies
- Food delivery companies
- Supermarkets offering delivery
- E-commerce companies
- Florists
- Restaurants, Pharmacy and department stores that offer delivery
Business impact of the last mile delivery problem
Moving on, we will share how the last mile delivery impacts the business:
- High operating costs and low-profit margins :- If the number of failed deliveries is high, it reflects as an increase in your costs also. Every failed delivery can mean a $17 loss. You can imagine the entire loss that you have to incur.
- Bad customer experience :- The way in which you do your last mile delivery decides the impression the customer has of you. Customers expect you to provide their items on time without any hassles. If the same does not happen, they will move to other platforms.
- High chances of cancellation :- In case the product is getting delayed, the customer would cancel its delivery. Making the last mile delivery a seamless process implies your customers are happy and would not cancel any product unless it is necessary. It is possible that the delay in reaching them might prompt them to buy the product from a retail store.
Summing up
Managing your last mile delivery is challenging for most logistics companies. Search for warehousing near me to find companies that deal in the same. They use route optimization software, which means the product reaches the customers without any road delays. Your product is delivered per the schedule, and customers are satisfied with the service. There is also the regular need to provide a streamlined service that means you do not have to worry about last mile delivery. Invest in associating with a logistic company that prioritizes last mile delivery, as that would help reduce costs.
