Last-mile delivery is a part of the logistic system where the goods are transferred from the final hub or the warehouse of the user to the destination. Most of the logistics industry use outsourcing and Crowdsourcing techniques to complete their last-mile deliveries. But the certain brands have already introduced their in-house delivery system where the entire logistics are taken care of by them using their own resources to reduce the delay. The cost reduction technique has, in turn, improved the customer base of the company to a certain extent.
Most of the e-commerce businesses are recreating their supply chain models based upon new technologies to provide a good delivery system for the clients and improve their speed. But despite these models and techniques, there is also an ever-growing concern about the charges incurred by the last-mile delivery system. Nowadays people are expecting a free delivery system. But to reach such a position, there are a lot of optimization techniques that need to follow while transporting the products from one location to the destination.
- Controlling fixed and variable cost
The current scenario has forced the delivery agent to be more cautious and sterile to ensure the safety of the people. Some of the countries have stopped their logistic delivery of goods until clearance. So, technically both the internal and international deliveries have been delayed and subjected to the new rules which have increased the delivery costs rather than decreasing them. Along with these changes, there are the regular charges involved, like shipping. When a product is stuck in a country for clearance, it will have to be stored in the warehouse for a certain period. So the rent charges are also applicable under this category. Some of the common cost charges incurred in last-mile delivery include fuel cost, reverse logistics cost, maintenance cost, storage cost, idling cost, labor cost, and environmental cost. To optimize the cost of the last-mile delivery, there are few techniques available that are explained in detail below.
- Improved order batching
Order batching is a technique where products with a similar delivery location are matched together for an improved delivery system. Since there has been an increased demand for online deliveries, most of the logistics companies will not have the time or manual power to perform batching. This will increase their cost since they have to maintain an advanced stock keeping unit. Having an automatic order fulfillment software will allow them to execute order batching efficiently. From order batching to automatic driver allotment, everything will be managed by this software. The algorithms used within this setup allows the deliveries to be on time with proper safety. It also can reduce the number of drivers and delivery routes to a certain extent. Hence, the last-mile delivery cost is reduced.
- Efficient route planning
Even if you use an experienced driver, there might be certain constraints in delivery due to unpredictable circumstances. So under such situations having perfect route planning or optimization software will allow you to avoid some of the unpredictable disturbances like traffic issues, weather-related issues, and other types of road closures. But this advanced software can detect real-time traffic and will provide you with a perfect time of arrival. This will reduce the delivery charges, and the drivers will be able to deliver more products on the same day. Even if the drivers are delivering their products in the same location, sometimes there is a chance of them missing deliveries in the consecutive house. But a good route planning system will inform them about the delivery next door to avoid re-routing and other issues. So optimizing the routes will improve the speed of the product delivery.
Another important element of ensuring efficient route planning is embracing modern last mile carrier tracking software. It optimizes routes in real-time, ensures fuel efficiency, reduces delivery costs and generates highly accurate ETAs.
- Improved visibility
The most common issues arise when there is a delay in delivery or occurrences of missing packages. This, in turn, will result in the cancellation of the product from the client-side. Even if the mistake is on the side of the brand, the last-mile delivery services are the ones taking the blame. Visibility has become an important factor these days. The current trends have forced people to keep track of their packages from the moment the order is placed. Advanced last mile delivery tracking for customers ensures that that consumers are always kept updated about delivery progress and are aware of any delays in the process. Having automated visibility in the delivery system will prevent the loss of packages, and hence most of the deliveries will be made on time. The electronics based delivery system will reduce the cost spent on tracking the missing packages and improve more deliveries to be conducted on a single day. This will optimize the charges incurred in last-mile delivery systems.
- Last Mile Delivery Tracking
A self-analysis is an important tool and idea that needs to be followed in every business. The usage of real-time data software will have the ability to reduce the unwanted issues that occur due to delays and loss of a package. Real-time tracking of last mile deliveries provides critical insights into the number of tasks completed per day, distance covered, number of delayed and on time deliveries, amount of fuel consumed and more. Analysis allows businesses to understand the issues and solve them immediately or for the upcoming batches. The data analysis technique is the best way to optimize the last-mile delivery costs on a higher-level.
The brands and logistics companies these features are based upon modern technology and more practical. The charges incurred for installing them are less. People can also normally follow these techniques to make sure that the last-mile delivery service they are choosing has the following features. This will ensure the branch saves a lot of costs and has a safe delivery.