Last Mile Logistics- Objective, the Process, Challenges and Opportunities

Each step of the logistics process of transporting packages is vital, from the moment a package departs from the shipper to the time it reaches the recipient. Despite the fact that each stage in the delivery process needs to be seriously considered, nothing is more critical than that of the Last-mile delivery level, during which the merchandise from a warehouse to their ultimate destination. 

The objective of the last leg of supply chain operations is to ship the goods to the destination the fastest possible way. The reason for this has been the dynamic market and the demand for better consumer experiences in sectors including e-commerce, retail, food, and so on. Despite its simplicity, the Last mile is an extremely costly service, actually, so fat it’s the priciest stage of the fulfillment chain.  

Last-mile logistics has become increasingly important for businesses all over the world where they have recognized a demand for better delivery service. Consumers readily seek substitutes if their logistics partners fail to provide top-notch supply solutions. This is essential for creating brand loyalty that goes a long way for businesses to gain the majority of the market share.

In the last mile delivery process, there are many vital factors included, that customers are concerned about, such as promptness, pace, exactitude, and accuracy of the shipment deliveries when they arrive at their final destination.

For a more clear picture of the last mile delivery process, here is a guide that describes the complete process starting at the warehouse and ending at the ultimate destination.

How Does Last-minute Delivery Work?

Step 1 

Into a centralized system, requests and orders are logged.

Significance- This is the best way of keeping track of goods. 

Step 2 

Items from the manufacturing lines or inventory reach the transportation hub or warehouse for distribution to the customers. 

Significance- This marks the beginning of the last mile delivery process.

Step 3 

Task assignments are optimized according to passageways and allocated to the right delivery staff. 

Significance- This is crucial for a more economical logistics solution. 

Step 4 

Before transferring to shipping trucks, goods are scanned. 

Significance- Tracking goods minimizes the possibility of getting misplaced when they are in transit. 

Step 5 

Proof of delivery is received upon reaching the ultimate destination. 

Significance- Records need to be checked for completed deliveries. 

What All Things Customers Expect For Last Mile?

• Quick delivery
• Convenience
• Order tracking with accuracy
• Risk management and insurance
• Specialization

Businesses Fall Short in Which Areas?

• Expenses 
• Efficiency 
• Intuitive
• Damaged products

How Can Businesses Address the Challenges of Last-mile Delivery?

• Technology
• Last-mile delivery solutions that are efficient

Ironically, the Last-mile delivery process is most vital, thus it covers a wide range of territories. Until the rise of e-commerce, the final point of products is the physical stores where customers should head to and shop the items personally. However, the last mile delivery has complicated everything as the shipment should be sent to each individual who bought the items at various locations. 

Thus, the consumer is free to pick the last-mile delivery service provider they want. There are many vital considerations customers should factor in when settling for the best service. 

Last-Mile Delivery Opportunities and Challenges

It’s exactly during the last leg of supply chain operations that a lot of established logistics companies are in trouble, and these companies are 

at a competitive disadvantage since new players emerge with new business models to meet the need for more fast-paced delivery.

Although overcoming last-mile delivery hurdles is an intimidating task, companies that delay or overlook this function might lose out to competitors who are more proactive. So, you require an end-mile delivery approach individualized for your needs. Customization is vital since most last-mile obstacles and opportunities differ by sector as the below examples demonstrate.

Retailers With Brick-and-mortar Stores

The traditional retailers usually run outlets that are spread throughout a region or a nation and facilities to support the stores. The majority of warehouses are designed to transport cartons and pallets of goods with accuracy and efficiency. 

But, at present, the rise of online sales undermines this conventional business model. Although most retailers need to make certain their shop provides a wide selection of products, they also should become adept in handling single orders associated with e-commerce, a completely peculiar packaging and shipping procedure when compared to dealing with boxes and pallets. Case in point, According to 53% of the customers, considering online order fulfillment, quickness of delivery is a crucial aspect. 

On the other hand, your stores give an edge, since they let you store stocks near your customers if they’re making an online or offline purchase. Due to this,same-day local delivery turns out to be much possible. It’s estimated that by 2023, over 50% of online orders will be fulfilled by local inventory, and this figure may reach 70% with ease. 

Retailers Who Focus Exclusively on eCommerce

When it comes to retailers who focus exclusively on eCommerce, the last mile delivery obstacles change slightly. Their fulfillment hubs and warehouses usually are, certainly geared towards handling eCommerce orders. But, to deliver orders, the majority of them rely on conventional carriers or postal services. This can result in a subpar customer experience. The majority of the conventional carriers are adept at shipping goods along long routes. Such carriers may not be capable of meeting deadlines when it comes to domestic shipments or transporting bulky or bigger shipments. If deliveries are not as expected, usually customers fault their order provider, instead of the delivery partner. 

B2B Suppliers

Although most of the attention around e-commerce has been focused on the booming customers who place an order online, the B2B businesses are also on the rise. At present, business recipients account for around 50% of the shipments.  They suppose that shopping goods for their business operations must be as easy as purchasing the newest hot selling item or even a new dress.  

Although few suppliers have vehicle fleets of their own, they usually face the same difficulties like that of companies that create vehicle fleets specifically for customer orders, such as large upfront costs as well as significant ongoing costs. Management should devote resources and attention to their fleet, instead of the company’s objectives. Added to that, even businesses that invest in these services often struggle to meet every customer’s delivery requirement, which can lead to disappointed customers. 

Final Thoughts 

Therefore, the last leg of supply chain operations being invalidated as being a vital component of logistics, there’s no room to doubt to factor in them as a crucial component in driving growth and expansion of the logistics business. With technological advancements and breakthroughs setting the stage for the years ahead, there is much more to follow for Last-mile delivery. 

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