In this era of development in technology, one can witness the rise in demand for last-mile services. Therefore, last mile delivery logistics are improvising their services to meet customer demands and provide satisfaction. The rise in demand is primarily due to the B2C companies that have resulted in researching quick and efficient ways to understand consumers. This has led to fascinating results as people can now associate visibility of the supply chains with the brands. This has created more transparency and has made it easier for the businesses to envision the loyalty of their brand. Statistics, however, show that the visibility of the supply chains is very high on the priority list of the consumers which demands same-day delivery.
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| Last Mile Delivery Logistics |
An Amazing Revelation
Improvisation in last mile delivery logistics has provided astonishing output in the last-mile deliveries which are mostly paper-based. These also lack insights on location that leads to numerous erroneous decisions which reduce margins. Therefore, implementing technology in the logistics has lessened the wastage of resources and has also tightened the supply chains. Other benefits are:
- More customers can receive full visibility
- More companies provide the service
- Reduced alignment discrepancy
- Stay ahead in the game
- Companies can perform well and
- Better identification of the needs of their customers to cater to it precisely.
The trends in last-mile delivery
As e-commerce is trending in today’s date, its effect is compelling changes and demanding incorporation of latest trends in last mile delivery logistics. Few effects and benefits which are to be considered are:
- Faster fulfilment – With an emphasis on logistics, there is a faster fulfilment of the demands of same-day delivery.
- Gig economy and crowdsourcing apps – The rise in the use of these have resulted in a better venture capital flow into this segment, especially in the urban logistics sectors.
- Focus on visibility – It has improved traceability to the legacy carriers as now one can have tracking info and proof of delivery.
- Postal service evolved – The postal services have also taken up such changes and have evolved over time and continuing to grow. There are no declines in mail delivery with the increase in e-commerce package delivery making such delivery simply an incremental cost.
Insourcing the deliveries
Today a number of companies use their own or shared vehicles for last mile delivery purpose. The primary reason for insourcing deliveries is that it is better to deal with a co-op so that they can use the transportation assets of each other.
Moreover, with the use of smart technology and sensors in last mile delivery logistics can keep track of each point of the delivery process which aids precision in resulted in proper and precise fulfilment of the customer demands.
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| Last Mile Delivery Logistics |
Challenges of Last Mile Delivery Logistics
Last mile delivery logistics is also not devoid of challenges like other similar businesses One of the major ubiquitous problems is the cost factor involved in transporting individual shipments to the desired and designated locations following a continually changing route. The other is providing the end customer with the desired experience through their service. Lack of transparency and high fuel cost also affects the business. Other common challenges involved in last mile delivery include:
- Poor infrastructure – Long routes and heavy traffic can prove to be the poor form of infrastructure in logistic business. It affects the time and the cost factor a great deal.
- Nuances of customers – This is another challenge that can cripple the progress. Factors such as incorrect address, untraceable location, no parking space, changing mind, desire to return product upheavals the unit cost.
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