Hub Group

Louis García

Last mile delivery is a challenging task, and any delay can harm the brand’s reputation and customer loyalty towards it, therefore, logistics providers must employ the latest technologies to overcome such delays.

The eCommerce industry is expanding at a quick pace and is transforming the global market. We're seeing a shift in consumer desires and expectations as internet marketplaces become more popular. Customers are seeking low-cost, speedy delivery solutions these days. Improving the last-mile delivery procedure is the most important aspect in assuring client loyalty to online retailers when it comes to shipping logistics. With the purpose of increasing brand loyalty and consumer happiness, last-mile service should focus on speed, timely delivery, and accuracy. Last-mile delivery, on the other hand, has its own set of difficulties such as:

Outdated technology

According to a survey by SOTI, nearly half of the world's transportation and logistics companies are still using outdated technologies for last-mile delivery. It is not much help when it comes to dealing with delays and expensive delivery fees. However, by installing a GPS tracking system in delivery vehicles and using the internet of things (IoT), logistics providers can monitor the entire last-mile route, anticipate any potential roadblocks, and design proactive tactics for dealing with them.

High delivery cost

Customers and businesses both pay a premium for last-mile delivery. Setting up an infrastructure that facilitates timely deliveries can be costly for the latter. Furthermore, shipping and logistics firms must budget for complex routes, missed deliveries, extended stops along the delivery route, driver pay, and vehicle maintenance. If a first delivery attempt fails and must be rebooked, expenses are increased. Customers are quite likely to abandon their carts when delivery charges are high.

Late deliveries

Late deliveries are one of the significant challenges that is faced by shipping companies. Businesses pay a high price when they fail to meet established deadlines. Delays in delivery damage a brand's reputation, increase customer attrition and have a negative impact on a brand’s bottom line. As a result, shipping companies need a solid last-mile delivery strategy that allows them to make on-time deliveries. The solution is to develop a technique for route planning and to ensure transparency and seamless communication at all levels.