Streamlining Last Mile Logistics for Best Customer Experience

Last mile logistics is referred to the operational capabilities of eCommerce businesses to deliver the orders to the customers as fast as possible. Nowadays, customer behavior and expectations have changed rapidly, resulting in free and fast deliveries becoming almost a must-have.However, delivering free and fast is an expensive part of the supply chain process, amounting to almost 53% of the total shipping cost.

 
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With the cut-throat competition in the eCommerce landscape,it has become imperative for every business to optimize their last-mile logistics operations. Especially in a scenario where the eCommerce retail giants such as Amazon, Walmart, and eBay are “breathing down your neck.” However, as we know, all businesses face some challenges of last mile logistics that can be listed as the following:

• Cost of last mile deliveries
• Lack of transparency
• Poor granular tracking
• Failed deliveries
• Inefficient routing and lack of route optimization
• Unpredictability in transit
• Lack of proper delivery infrastructure
• Outdated delivery tools and technologies

The eCommerce landscape has lately become more competitive due to the omnichannel shopping experience the customers expect. In fact, the omnichannel eCommerce experience has stretched the delivery and logistics capabilities of eCommerce brands to their maximum limits. The logistics partners nowadays find innovative, creative ways to undertake maximum delivery in the shortest time possible so you can keep your customers happy.
 

 
With customer behavior and expectations changing rapidly and the last mile delivery gaining momentum, supply chain and logistics service providers are “feeling the heat.” They are under pressure to streamline the last mile logistics for maximum and cost-efficient order fulfillment. Here are some thoughts you might find helpful to streamline your last mile logistics:
 
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• Data, Data, and Some More Data Gone are the days when businesses used to make decisions based on previous experiences and gut feelings. Nowadays, due to the advancement of digital technologies, businesses are making informed decisions based on data. Facts and data are a smarter way to make intelligent business decisions.
• Internet of Things [IoT] and Radio Frequency Identification [RFID]. Proactive planning always helps deal with high-demand situations. With customer demands rising rapidly, you have to develop strong last-mile strategies to successfully process the steep rise in demands during the holidays. It requires precise planning based on data and insights.
• Encourage Scheduled Deliveries.As customers demand scheduled deliveries, eCommerce retailers can also plan for scheduled deliveries based on customers’ consent. Scheduled deliveries can help fulfill bulk orders and make last mile deliveries easier. To reward customers for their consent, you can offer incentives such as additional discounts, promo codes, free shipping, or cashback offers.
• Contingency Planning with Buffer Time. As they say, “plan for the best and prepare for the worst.” Even your strongest last-mile strategies can’t cover sudden situational catastrophes that might hinder order fulfillment. Hence, the smart way is to set aside some buffer time for unavoidable contingencies such as weather tantrums, vehicle breakdowns, or diversions. Plan your deliveries to move smoothly so your customers can get their packages on time. Ensure that your customers are updated in extreme situations where a delay can’t be avoided.
• Automation is the Key.Automation is a must in most businesses, especially in an extremely competitive landscape like eCommerce and supply chain logistics. Your logistics operations must be automated to provide your customers with the best delivery experience. Technology is the key to providing cost-effective, faster, and more efficient deliveries.

ALSO READ: When is the Right Time for a Business to Hire 3PL
 

 
To conclude, streamlining last mile logistics has become crucial for eCommerce retailers, given the rapid increase in customer demand in online shopping. Also, the global pandemic has raised online shopping, which is here to stay.
 
So, the sky-high customer demands regarding order fulfillment keep businesses “on their toes.” In such a scenario, your best move is to find a strategic supply chain partner with industry experience, so you can take care of your core business.

 
XPDEL is a leading hi-tech provider of fulfillment and logistics services, on a mission to enable growth for eCommerce companies. We are futuristics in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow.