Challenges to Overcome in Last Mile Delivery

Logistics Tech Outlook | Wednesday, November 17, 2021

Last mile delivery is becoming increasingly crucial to merchants as their customers want smooth, instant service.

FREMONT, CA: The last mile is the distance between the warehouse and the customer's doorstep. The primary goal of last mile delivery is to expedite the delivery of the goods. 61 percent of logistics businesses feel that the last mile delivery process is the least efficient in the overall delivery chain. Consider some critical elements affecting last mile delivery.

Inadequate Transparency: Buyers want to know the precise location of their purchase and the anticipated delivery date. As a result, visibility is the most critical precondition for establishing credibility. The majority of firms provide package tracking IDs that indicate the product's delivery status. However, in today's technologically advanced world, consumers are dissatisfied with tracking codes. They want to inspect every stage of the last mile procedure, even if it is same-day delivery.

Costly Delivery: Delivering a superior customer experience while remaining profitable is challenging for retailers and logistics organizations. Indeed, the last mile alone accounts for 28% of the delivery cost. One of the primary reasons is a lack of infrastructure to ensure timely delivery of supplies. Additionally, failed delivery efforts, lengthy routes, driver compensation, and fleet operations all substantially impact the cost of delivery.

Elements That Are Unpredictable: When it comes to last mile delivery, there is just one thing we can predict: it will be unpredictable. Traffic congestion, adverse weather conditions, and flat tires are just a few final mile issues beyond human control. Logistics businesses can only maintain smooth communication and develop a contingency plan to expedite product delivery.

Route Planning Is Inadequate: Route planning is perplexing and mentally taxing for a beginner. It is determined by several variables, including fuel efficiency and environmental laws. Route planning inefficiency is the primary cause of late deliveries. Logistics companies can overcome this barrier by utilizing route optimization tools to increase efficiency.

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