So, how does an organization deal with last mile delivery? What role can technology play in this field? How to get greater control over last mile delivery? Well, we will get there soon. First, let us quickly revisit what last mile delivery actually means.
Last mile delivery can be defined as the movement of goods to the end consumer’s doorstep from a transportation hub, say for instance a warehouse. It is the last leg of the entire delivery process where it reaches the end customer. A great last mile delivery model paves way for timely deliveries that result in customer delight.
Take for instance a situation where your delivery personnel reaches a customer’s location two hours late that too without prior notice. The customer planned her entire day based on the expected delivery time. Thanks to poor last mile delivery execution, now her entire schedule goes haywire. This not just affects the customer experience but has a domino effect on other deliveries that get subsequently delayed too.
On the other hand, a seamless last mile delivery experience can act as a big competitive differentiator for retailers and
The last mile situation can get quickly out of control and escalate into higher fuel costs, missed delivery schedules, incorrect deliveries, hassle for delivery personnel due to bad address quality and several more. As a vendor, there is a whole different set of challenges such as:
A major problem in last mile delivery can be attributed to that fact that in most countries delivery fleet owners belong to an unorganized sector, hence curbing visibility by multifold.
Also, next-day and same-day deliveries are getting increasingly common, Customers, especially millennials, demand it to be as smooth and hassle-free as it can get. These customers want complete visibility and flexibility into their delivery options and expect real-time tracking as a defacto.
Real-time collaboration between the customer and the delivery personnel is one of the key challenges that is encountered time and again when executing the last mile. At the time of delivery, it might so happen that the customer is not at home or is out of reach. Such situations not only cost the company time and money but also exposes goods to risks such as theft, damage etc.
Another significant challenge with regards to last mile delivery is continuously optimizing routes and ensuring productivity of drivers. Failing to be on top of these two aspects can take a toll on customer experience scores and increase operating costs.
Last mile delivery software is a typical software or platform that enable companies to manage last mile delivery in an efficient, transparent and controlled manner. It encompasses a variety of functions and capabilities such as route optimization, digital/electronic proof of delivery, real-time tracking of shipment status,
Increase visibility, boost customer experience and engagement, optimize delivery routes and customize delivery locations are some of the major challenges that a last mile delivery software can address.
To ensure on-time delivery and increase fleet productivity it’s crucial for businesses to constantly intimate drivers with the shortest and most convenient route to a customer’s location.
A last mile delivery software can give businesses real-time visibility into where their vehicles are and how much time is being spent idling.
This not only gives supply chain and logistics executives better control over their fleet but also helps to minimize thefts, pilferage, and spoilage.
Advanced last mile delivery software empowers businesses to be completely transparent with delivery processes. Customers waiting for deliveries can easily know where their parcels are, who is going to deliver, when will it arrive, if there are any delays and more. Customers can also chat with service agents to escalate queries.
Modern customers are mostly on the go. Last mile delivery software allows customers to change delivery location as and when they want. This makes the delivery process flexible and increases customer loyalty.
First-mile delivery can be defined as the movement of goods from a retailer or a manufacturer to a courier service provider who begins the process of delivering the goods to its final destination.
Growing customer expectations, rising operating costs
Here are some tools that can help businesses address these core last mile delivery challenges.
Gartner cites ‘visibility’ as one of the biggest
Customers today are impatient. They want to know where their parcels are, who will be delivering their goods, when will they receive their parcels, change delivery locations, customize delivery timings and if there are delays in delivery. They want to know all these and that too in real time.
Advance supply chain platforms empower business to allow customers to track their goods from the moment they are dispatched
Geofencing capabilities allow supply chain and logistics executives to get real-time alerts when a vehicle enters or leaves
Fleet productivity is of great importance when we talk about very short delivery cycles. And to ensure high levels of productivity, it’s necessary to use tools that report location of vehicles, help optimize delivery routes, automate job allocation and ensure greater control over third-party logistics.
Monitoring last mile delivery can get extremely complex if businesses do not invest in the right supply chain and logistics platform.
Savvy organizations, that are inclined towards delivering a seamless customer experience, are leveraging software platforms that increase visibility into supply chain and logistics by multifold.
Such platforms make reporting easier and core-supply chain processes transparent. Things like monitoring fleet or driver activity, predicting theft, planning efficient routes, quick allocation of tasks, real-time billing, quick customer feedbacks and much more makes monitoring last mile delivery simpler, faster and organized.
FarEye brings visibility in the entire distribution system by seamlessly integrating with the existing systems of your 3PL providers.
A quick round-up of 2018 at FarEye where we look at some major milestones in our journey spanning Product Announcement, Awards, Acquisition, Funding and Global Expansion.
CxOs are betting a lot on the investments in the Supply Chain Market and are expecting to exceed $ 13bn in total software revenue by the end of 2017, up 11% from 2016.