As time passes, we observe a changing trend in buyers’ needs and expectations. This is specifically for the shipping and logistics industry. Retailers have fast and flexible last mile logistics options to manage the demand for seamless and immediate delivery. To understand what this phenomenon is and the challenges and solutions associated with it, keep on reading.

What is Last Mile Logistics?

The coordination of a package from a warehouse to the customer’s doorstep is called last mile logistics. The primary purpose of this logistics operation is to get the parcel to the customer as quickly as possible.

Logistics companies have a consensus that this mode of delivery is very ineffective in the entire supply chain. So, let’s review some important factors and challenges that affect last mile logistics.

Common Challenges In Last Mile Logistics:

There are numerous challenges associated with last mile delivery. Let’s look at some of these.

Lack Of Transparency:

Today, buyers want to know the exact location and delivery time of their shipment. So, transparency is an essential prerequisite if you’re developing credibility. Companies offer tracker IDs of packages that can inform buyers of the parcel’s status.

However, customers are not satisfied with tracking IDs in this tech world. They want to check their logistics at every step even though the delivery is on the same day.

Higher Costs:

The greatest challenge perhaps is to get a great delivery experience and remain profitable during the whole process. The last mile logistics is the most expensive part of the entire supply chain. It constitutes 28% of the delivery costs.

One of the critical reasons for this high cost is the lack of infrastructure. Moreover, failed delivery attempts, extended routes, and driver fees also impact the cost of last mile logistics.

Unpredictable Circumstances:

When it comes to last mile logistics, we can only predict highly unpredictable. Many factors influence it, like weather conditions, traffic, and truck maintenance.

The only possible solution for these challenges has an efficient plan B and to maintain a seamless communication system.

Inadequate Route Planning:

Route planning depends on fuel efficiency and environmental regulations. This process can be confusing but is a significant reason for late deliveries. Organizations can use route optimization software to increase operational efficiency to overcome these problems.

Last Mile Logistics Opportunities: 

Now, let’s look at some of the opportunities we can explore to improve the last-mile logistics. 

Urban Warehouses:

eCommerce companies need to look into establishing multiple urban warehouses. It is essential to have various warehouses for the immediate delivery of products. This effectively reduces delivery times and simplifies the logistics operations as well.

Smart Tracking Technology:

Companies are now experimenting with innovative technologies like Location Intelligence to improve last mile logistics. These technologies are capable of intelligent tracking, route optimization, fleet management, etc.  

Insourcing Deliveries:

Companies are using their company vehicles to take care of the last mile delivery. They handle everything internally, but this is true only for larger companies. Smaller eCommerce setups are still using outsourced transportation.

FAQS

Q- What is Last mile carrier tracking? 

Last-mile carrier tracking is the information provided to the end customer that shows the status and location of a package. This information can be monitored by the consumer as soon as the carrier leaves with the shipment. Today’s consumers have high expectations and demand real-time accuracy of tracking data.

Q- How can software help in last mile logistics?

The software empowers businesses to cut through the noise in this customer-specific age with automation, optimized routes, real-time monitoring, and effective movement of parcels for both B2B and B2C segments.

Conclusion:

Last mile logistics creates many challenges for eCommerce companies, but we can explore several opportunities in this area. The hour needs to optimize this segment of the supply chain to close this market gap. 

Also Read: RFP Checklist for Shippers