Last-mile delivery is among the most expensive and difficult aspects of the business. Customers are increasingly turning to eCommerce stores for all of their buying requirements. Subsequently, they expect a shopping experience with quick fulfillment. With Amazon Prime intimidating the industry, speed must be a top priority for online sellers. As a result, they have begun to explore new supply chain fulfillment models and technologies to boost parcel volume, accelerate delivery, and improve the customer experience while reducing costs.
About Last Mile Delivery
The transit of products from a transportation station to the final location is called last-mile delivery. A commercial business or a personal house is usually the final delivery location.
Last-mile logistics focuses on getting products to the customers as quickly as feasible. Due to the increased need for integrated omnichannel fulfillment, last-mile logistics has been a hot topic for online sellers.
Businesses have been obliged to review their current delivery network capabilities and improve as omnichannel fulfillment demands change. Therefore, they and their supply partners must deliver great service to acquire market share and establish brand loyalty.
Challenges of Last Mile Delivery
Among the difficult components of eCommerce, fulfillment is the final leg of the logistical process. As a result, it is critical to understand the issues you are up against so you may address them efficiently and cost-effectively. Some of the Last-Mile Delivery challenges are listed below:
1. Cost
The Last Mile Delivery can be costly in terms of operating costs due to its inefficiency. Among its difficult aspects is the enormous effort required to get each product to its intended recipient.
2. Efficiency
Last-Mile Delivery’s nature has proven to be difficult, owing to the many customers to whom products must be delivered. It necessitates a large fleet of vehicles, all of which must be operated by skilled staff.
3. Transparency
Customers expect to know when their orders will arrive and be able to track them at all times. The typical practice of order tracking now involves informing the customers of their delivery status in real-time to anticipate when it will arrive.
4. Errors
Although a seamless delivery experience is desirable for increasing efficiency and lowering costs, errors can occur, and abstain from happening most of the time. The eCommerce fulfillment process’ improvements, such as the employment of robots, have removed many human aspects and errors that inevitably arise as a result of it.
Benefits of Partnering With a 3PL
Merchants and customers have different needs and expectations, making it difficult for Last-Mile Delivery providers to satisfy them. Third-party logistics companies, such as NimbusPost, are increasingly competing with shipping logistics to provide last-mile delivery. It relies on proprietary supply chain monitoring and inventory management software to increase routing efficiency and give visibility to both the company providing eCommerce fulfillment services and the customer waiting for the product order to arrive. This approach ensures a continuous flow of real-time intelligence across the supply chain. Thanks to digital solutions, providers have been able to efficiently manage peak periods, routes, and costs.
Advantages of Partnering with a 3PL
1. Inventory Distribution
A 3PL with many fulfillment centers around the country can assist reduce expenses by reducing the time and miles necessary for product delivery.
2. Reduced Overhead Costs
It might be difficult to promptly accommodate a sudden increase in demand if you rapidly increase sales volume. A 3PL will help you to expand swiftly to meet rising demand since they have the appropriate facilities, technology, and staff to scale up.
3. Optimization of the Route
Because delivery agents make many stops at customers’ doorsteps, route planning can significantly influence the pace of last-mile deliveries. It is critical for a business to optimize its delivery route, which will result in faster deliveries, greater resource utilization, and increased production at lower prices.
4. Accelerated Shipping
Your clients’ expectations for quick delivery times have now become the standard. Using a logistics provider to outsource order shipment and fulfillment allows you to provide products they could not provide if they fulfilled orders in-house, such as discounts, numerous shipping options, and better technology for higher accuracy. A third-party logistics provider can assist you in meeting customer needs for speedier shipment and lower shipping costs while also increasing revenues.
5. Logistics in Reverse
Product returns are common in online sellers, and processing them is a big time and financial commitment. In addition to providing product feedback and consumer data, a 3PL can help make the return logistics process simple and cost-effective.
6. Customer Satisfaction is Important
Making your customers happy is the most crucial thing you can do. Customer satisfaction is affected by faster deliveries, product packing, and early pickups. 3PLs specialize in ensuring that all of these things happen as quickly and inexpensively as feasible.
Conclusion
There is no standard answer to Last Mile Delivery issues. Indeed, a 3PL or online retailer may discover that a mix of analytics and better technology is the answer to reducing wasteful last-mile delivery expenses. The need to optimize last-mile delivery is apparent, regardless of your fulfillment method.
If you are looking for a reliable third-party logistics provider, NimbusPost can assist you with your business growth. To understand more, visit the website to check out NimbusPost’s list of services or look at the various courier partners it collaborates with, to provide excellent logistical support.
