With more and more consumers demanding nearly instantaneous delivery services, businesses are struggling to meet their customers’ expectations. In particular, the final step of getting a package to a customer’s doorstep — known as last mile delivery — can be especially challenging for companies, depending on their location, size and scope of operations.
In our guide to last mile delivery, we’ll go over what last mile delivery is and how to overcome any obstacles that stand in the way of providing this benefit. Keep reading to discover last mile delivery solutions to optimize your business.
What Is Final Mile Delivery?
Also known as final mile delivery or white-glove delivery, last mile delivery is the final step of the product shipping process. During this stage, a package moves from a transportation hub or warehouse to its final destination, which is typically a retail store or personal residence. Last mile delivery aims to deliver parcels to the customer as quickly and efficiently as possible while keeping company costs low.
Last mile delivery is essential to the supply chain process because it is the step that gets the product into the customer’s hands. Specifically, threshold delivery service is a type of last mile delivery that takes the item directly to the end consumer’s doorstep, no matter how large or heavy it is. Threshold delivery providers take care to situate the parcel safely in a dry and protected area.
Satisfactory last mile delivery allows a business to keep up with the increasing customer demand for fast shipping. In many cases, last mile delivery sets companies apart from their competitors because consumers can go to a different retailer if they’re not happy with their shipping options. On the other hand, superior final mile delivery leads to benefits such as:
- Building a diverse customer base: Building a trustworthy brand known for dependable delivery services can empower you to acquire and retain new customers, boosting your revenue. Word-of-mouth praise from existing customers and providing delivery services to rural and remote areas can highlight your business as the most reliable for your products and help you expand your reach.
- Boosting brand loyalty: When your business allows customers to enjoy purchases quicker, you can build brand loyalty. If your customer base regards your business as reliable and efficient, they’ll have less reason to switch to a competitor. Mastering last mile delivery can increase customer satisfaction, and happier customers are more likely to return to your brand for repeated transactions, supercharging loyalty.
- Ensuring product quality: In some cases, efficient last mile delivery is essential for your products. For example, food items can spoil, and products like makeup or candles can melt in certain temperatures. Efficient final mile delivery ensures your customers receive their purchases in the condition they expect.
How Does Final Mile Delivery Work?
Last mile delivery often involves several steps. The process begins when a customer places an order, and the placed order moves to a centralized system. Your company and customer can monitor the order status. Once an order arrives at your transportation hub, your business must work to ensure the package gets to the customer as quickly as possible.
You must craft the most efficient routes to ensure a cost-effective solution that benefits you and your customers. Once the order is ready to move, update the package’s status, allowing the customer to conveniently track the shipment during travel.
Your team should also have proof of delivery when dropping off a package at the final destination to alert the customer of its arrival and confirm a successful completed delivery.
Leveraging Last Mile Delivery With a Third-Party Logistics Partner
A third-party logistics provider (3PL) is an outside vendor that fulfills orders for companies. You ship products in bulk to the 3PL, and this company stores your product in a warehouse and handles final transportation measures like last mile delivery whenever a customer places an order. A 3PL such as ExpressIt Delivery has the expertise, resources and proven processes to enhance a company’s last mile delivery services.
Partnering with a reliable 3PL creates new possibilities for you and your customers. With increased fulfillment centers in strategic locations, you can offer delivery options like same-day or next-day shipping to further satisfy your customers. Additionally, with more team members and efficient routes to move your products, you can enhance your overall operations while building customer loyalty.
Specifically, working with a 3PL offers companies these benefits:
- Reduced shipping costs: Shipping a package cross-country can be expensive. Partnering with a 3PL in a high-demand area can save a company on costs by requiring less mileage and time to deliver packages.
- Minimal overhead increases: When a business suddenly sees an influx in sales volume, it can be challenging to meet the increased demand on time. Working with a 3PL enables a company to quickly expand its operations to keep up with the increased order frequency.
- More customer satisfaction: Partnering with an expert 3PL allows a business to improve its performance and profitability across the nation while keeping delivery costs low and customer satisfaction high. Because a 3PL can help reduce delivery time even in times of high demand, businesses that work with a 3PL will have happier customers, which means more customer retention and brand loyalty.
What Are the Challenges of Last Mile Delivery?
Efficiency is the most significant problem facing last mile delivery. If you’ve ever tracked an order and noticed it was “out for delivery” for what seemed like an eternity, you’ve experienced the frustration of dealing with an inefficient final mile delivery process. Most likely, you’d think twice before ordering from that company again.
However, last mile delivery is the most complex and time-consuming part of the whole shipping process. The final-mile delivery process needs to navigate numerous logistical factors to place a parcel in the customer’s hands, which means each step must be as efficient as possible to deliver the package on time.
These are the top three last mile delivery challenges to consider:
- Location: Distances can hinder efficiency when the effort necessary to transport parcels is not proportionate to the costs it takes to move minimal products. For example, warehouses in larger cities must work around increased traffic congestion. On the other hand, rural areas face the issue of vast expanses between delivery points.
- Company size: A business’s size also affects its last mile delivery process. A larger company will have more orders and delivery routes to juggle each day. In contrast, a smaller company will need to figure out a cost-effective way to reach target destinations while delivering fewer packages. Companies need to figure out the number of deliveries they can make along each route and the most efficient number of routes to take.
- E-Commerce: As e-commerce’s popularity continues to rise, so do consumers’ expectations for their shipping services. Customers’ standards for shipping include fast delivery at little to no cost, forcing businesses to cover at least some of the delivery costs themselves. However, online shopping increases order frequency, which can make it challenging for businesses to find an adequate balance between cost and efficiency.
How to Improve Your Last Mile Delivery Process
Now that you recognize the importance and benefits of last mile delivery, you may be wondering how to perfect the process. Below are a few tips for structuring a more efficient last mile delivery process.
1. Use Route Planning
Well-thought-out route plans are crucial to cutting delivery time. While rural and urban areas present unique time and gas expense challenges, route planning can minimize these issues by accounting for location, time, traffic and vehicle capacity and coming up with the most time- and cost-effective routes.
To save you the headache of calculating the most efficient routes on your own, there are now many apps and software options available to assist with route planning. Providing delivery drivers with tech that offers real time traffic updates can optimize route times by helping them avoid congested roads.
2. Provide Continuous Communication
Every company should prioritize customer service, which means maintaining excellent customer communication is a must. The modern customer wants to stay informed of the status of their order from the point of purchase to order fulfillment. Businesses can meet these expectations by updating the customer via SMS, email or both about their package’s location throughout the supply chain and last mile delivery process.
Practicing transparent communication will decrease the number of customer service calls a company receives concerning an order’s status and increase customers’ confidence in the company’s final mile delivery services. When a customer feels they can trust a company, they will be more likely to buy from that provider again.
3. Invest in Tracking Technology
To prevent losing or misplacing packages throughout the last mile delivery process, a company needs to implement an effective tracking system. Having a reliable tracking system before the parcel leaves the warehouse enables you to easily monitor the amount of time it takes for an order to go through each step of the supply chain, from placement to delivery. Often, partnering with a reliable 3PL for last mile delivery allows you to access these advanced technologies. For example, ExpressIt uses up-to-the-minute GPS tracking and a client portal to enhance your product visibility.
Outsourcing Last Mile Delivery With ExpressIt
Reliable last mile delivery is essential to keeping customers happy because consumers want fast, inexpensive and reliable shipping. Companies cannot afford to disappoint their customers in this area, since most buyers won’t hesitate to take their business elsewhere if the shipping options aren’t up to their standards. With customized logistics support from ExpressIt, your business can maximize its last mile delivery efficiency while keeping costs low.
ExpressIt specializes in same-day delivery and trucking services to help companies all over the country find last mile delivery solutions specific to them. From same-day and on-demand shipping to next-day delivery and warehousing, we offer custom services to meet companies’ needs and support their operations.
If you’re ready to optimize your company’s last mile delivery process, contact ExpressIt to learn more and receive a free quote.
