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What’s Last Mile Delivery and Its Challenges?

Posted by NowlesNorman in Other on May 22nd, 2018

The final step of the process that involves the product delivery from the distribution center to the end user is referred to as the last mile delivery logistics. It usually ranges from a few blocks to 50 or 100 miles and forms about 28% of the total shipment cost.

The last mile delivery services make use of small package carriers for delivering the products to customers. No matter what is the size of the shipment product, it plays a vital role in enhancing the growth and profitability of the firm.It enables the shippers to deliver more products to the customers in a cost-efficient manner in an omnichannel supply chain.But for services such as same-day or instant delivery, the customers willfully pay premiums for better last mile delivery services.

The last mile delivery platforms face increasing challenges today because of the high traffic in urban areas that make it difficult to navigate.Another problem is the need of assembling and skillful unpacking of the large products after delivery.You can find a large number of last mile carriers, but not everyone supports the assembly option.There may be certain products that require skillful technicians for specialized installation.Consumers expect speed and visibility of the product at every stage of movement from its source to the destination.

The lack of a sufficient number of drivers and the capacity crunch continue to be a major hurdle for a last mile delivery platform.In order to remain ahead in the competitive markets, all these challenges need to be overcome.

The use of a last mile delivery software can help a logistics firm to overcome many problems by streamlining the operations efficiently.The software utilizes the available data in a smart way to stay ahead in the last-mile delivery sector.For example, using the data for route optimization equips the logistics firm with an ability to ensure that the routes taken by the drivers each day are optimized.It is achieved through identification of peak hours, seasonality and forecasting the delivery needs that might pop up in the future.Gathering maximum amount of data can also lead to an enhancement of the efficiency around the management on the ground.

The live tracking solutions provided by the last mile delivery software helps the firms in leveraging the technology.This increases the transparency involved in the whole process of the movement of the order till the endpoint.It also lets the firm track the driver's location at any time and knows his current position.

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