In today’s world, people expect cheap and quick parcel delivery, irrespective of their location.
Therefore, businesses must find ways to increase efficiency and reduce costs to remain competitive.
This has opened a whole new set of opportunities for businesses to start their own last-mile delivery apps.
76% of logistics companies believe in a mobile-first strategy for last-mile delivery operations.
So, if you are thinking of launching such an app, understanding every aspect of this delivery is essential.
Introduction
By 2030, the last-mile delivery market is expected to reach $121 billion globally.
So, for an organization to be successful in logistics, conquering the last-mile delivery service has to be at the forefront.
The massive increase in demand for same-day parcel delivery services has changed how businesses handle logistics.
In the age of instant gratification, companies are partnering with logistics providers to cater to time-sensitive customer demands.
Overall, the stakes are incredibly high in the last mile.
A positive last-mile interaction translates to strong brand equity, whereas a negative one can ruin a brand.
But what exactly does ‘last mile’ mean in the world of on-demand deliveries?
What Is Last Mile Delivery?
It is the final phase of the overall parcel delivery process.
This is where the parcel has left the warehouse, moved into the back of the truck, and is on its way to the end consumer’s doorstep.
Here’s how it typically works:
- Order Placement: The customer places an order request online or through a mobile app.
- Order Fulfillment: The order is packed and prepared for shipment at the warehouse or fulfillment center.
- Route Optimization: The delivery vehicle’s route is optimized as per the location to ensure that packages are delivered in the most efficient way possible.
- Last Mile Delivery: The driver delivers the package using technology, such as GPS in mobile apps, to navigate to the customer’s location.
The goal of last-mile delivery is to deliver the parcel as quickly and accurately as possible.
Why Are Last Mile Deliveries So Important?
With the growth of consumer expectations, last-mile deliveries have emerged as a pivotal aspect of the logistics industry.
They empower businesses to organize, optimize, and improve their end-to-end logistics operations.
These logistic operations rely on shipping products and services wherever they’re needed.
The last mile of your parcel’s delivery accounts for more than 41% of the total shipping costs.
Optimizing last-mile delivery can result in significant savings for businesses and retailers.
If you don’t optimize these processes, failed deliveries can happen, which drives your expenses through the roof.
Therefore, perfecting your last-mile delivery is critical for your business profits as well as for delightful customer experiences.
Challenges In The Last Mile Deliveries
With the ever-presence of human errors, completing a last-mile delivery on time is a challenging process.
Many of these challenges are related to orders present at different locations that the parcel delivery partner has to face.
In the last mile deliveries, overcoming the following challenges is crucial for paving the way for a successful delivery.
Traffic Congestion
A parcel’s real-time status reads “out for delivery.” Still, it takes more time to reach the destination.
This mostly happens due to the presence of numerous delays between stops in the final stretch of shipping.
Traffic congestion and the ongoing surge of parcel requests are the main causes of such delays.
Limited Information
A wrong address, trouble getting access to the place, or waiting upon reaching the place leads to more uncertainty.
In essence, more stops mean more complex routes, resulting in more idle time on the road.
Missed Deliveries
The main reason behind this challenge is the unavailability of the customer, which causes the parcel to stall in transit.
Other reasons also include being unable to meet the delivery window restraint as specified by the consumer.
Conquering Last Mile Deliveries Using Parcel Delivery Apps
In order to stay competitive, finding new ways to improve efficiency is the key.
To address these challenges and improve last-mile deliveries, parcel delivery apps are using various innovative solutions.
One such solution comes from advanced route optimization algorithms, real-time data analysis, and much more.
Advanced Route Optimization
The digitalization of last-mile deliveries is the key to having much better speed and efficiency for others to follow.
With route optimization, instant triggers notify you of any prolonged stoppages or idle vehicles.
All the driver has to do is follow directions from your parcel delivery app.
Therefore, drivers are more likely to go off-route during their delivery routine, leading to fewer deliveries.
Furthermore, advanced route optimization algorithms automatically optimize routes in real-time based on weather conditions and traffic congestion.
Most last-mile deliveries are properly tracked, and protocols are employed to prevent the wrong deliveries from happening.
Real-Time Tracking
Real-time parcel tracking with live location has increased customer expectations around the status of their parcel’s location.
It also takes care of on-the-fly adjustments and changing conditions such as traffic conditions, delivery volume, and customer preferences.
This leads to better optimization of delivery routes, eventually reducing travel distance and delivery time as well.
Crowd sourcing Delivery And Micro-Fulfillment Centers
The same-day and on-demand delivery options have gained immense popularity by offering faster delivery windows.
Using extensive networks coupled with the concept of crowd sourcing delivery has gained traction, further speeding up the last-mile process.
This is where parcel delivery services connect local couriers or individuals willing to deliver parcels with the nearest pickup.
Not only has it reduced the overall cost for logistics providers, but it has also provided flexibility and quicker deliveries.
Furthermore, the concept of micro-fulfillment centers or strategically located warehouses is gaining popularity.
Storing inventory in multiple micro-fulfillment centers that are closer to urban areas enables faster and more efficient parcel deliveries.
Benefits Of Having A Parcel Delivery App
A mobile app helps the parcel delivery business focus on making the parcel volume perform better than traditional carriers.
Therefore, retailers focus on last mile delivery as a key differentiator to send parcels into remote communities faster than before.
This has led to huge growth in the last mile delivery industry.
More Streamlined
A last mile delivery app helps your parcel delivery process be more streamlined for timely and convenient deliveries.
They have proven to be extremely beneficial for your business, especially compared to traditional and legacy systems.
By using advanced algorithms, a parcel delivery app can create the most efficient and cost-effective routes, improving overall efficiency.
Better Visibility
A last-mile delivery app satisfies your customers with enhanced shipment visibility and complete transparency.
As a result, your platform attracts your competitor’s clients along with retaining customers with this increase in trust and reliability.
Increased Flexibility
The rapid surge in on-demand parcel deliveries has made it difficult to track each parcel accurately.
Moreover, order returns have been an ever-expanding challenge as a direct result of this setback.
Many companies face this issue, especially when the customer is not there to receive the order.
A last-mile delivery app prevents this from happening by making necessary changes in the system without causing any inconvenience.
Reduced Risk Of Error
An efficient last-mile app prevents unplanned errors from happening.
It standardizes the routes for truck drivers, couriers, and delivery guys to deliver the product in the minimum amount of time.
As a result, you can witness a significant boost in productivity that will undoubtedly benefit your business.
Conclusion
Last-mile deliveries are rapidly shaping customer experiences and driving satisfaction in today’s consumer-driven market.
This final phase of parcel delivery holds immense significance in creating lasting and positive relationships.
Not only does it improve customer loyalty, but it also increases the competitive edge for businesses.
Having control over this can lead to satisfied customers, negative reviews, and the loss of future business opportunities.
Therefore, optimizing such deliveries has become a top priority to stay ahead in the market.
To keep yourself a step ahead of your competitors, you have to be self-aware of the challenges that come with it.
Building an exceptional last-mile app not only makes things easier but also provides an extra level of comfort.
