Last-mile delivery is the final step needed for the completion of the order. Further simplifying it, one can say it is the delivery of the product at the customer’s doorstep.
Why is the last-mile delivery system so significant?
Last-mile delivery evokes sentiments of the customers. When the customers get the delivery on time and without hassles, they trust the company and the brand. Thus, it results in faster growth of the business.
As we are living in a digital world, there is a continuous exchange of information between people via social media platforms. So, any instance of dissatisfaction or displeasure experienced by the customer can spread like wildfire and destroy the brand’s years of hardship spent on building a positive reputation. Therefore, ensuring seamless last-mile delivery matters for business success.
Top Practices to Make Your Last-Mile Delivery Successful
To make your last-mile delivery system successful, stick with the following things;
Use of Technology
Technology plays a vital role in the success of the last-mile delivery system. Last-mile delivery software like ERP or Enterprise Resource Planning streamlines smooth logistic movement. Businesses must also use proper warehouse management system equipped with a real-time delivery tracking system to measure or track the consignment movement. Using technology to track and monitor the consignment will help you maintain specific standards for consumer loyalty.
Top companies in the competition are using technology to make the delivery system more futuristic and sophisticated. For example, Amazon is using drones to ensure delivery of the packages in less than 30 minutes.
As per the report of McKinsey, an advisor and counselor of Fortune 500 companies, the use of autonomous vehicles by 2025 will cover 80%, at the door delivery. For greater sophistication, AGVs or Autonomous Ground Vehicles will be up for last-mile delivery. At such times, last-mile delivery software will play a key role in changing the consumer’s experience.
Same Day Delivery in Last-Mile System
Consumers want innovation and commitment to their buying experience. As instant gratification can increase brand allegiance, top e-Commerce service providers are pushing for same-day delivery. As per research, consumers are ready to pay extra for getting the same day delivery.
Those companies that promise same-day delivery witness high traffic in comparison to their counterparts, who do not. Proper use of last-mile delivery software to track the movement of goods from the source to the destination helps in creating a separate identity and brand loyalty in the competition.
For improving the last-mile delivery, you need to measure the performance of last-mile delivery software. The software collects data of on-time delivery, driver’s productivity, and fuel efficiency. Using these inputs, you can fill up the gaps in the customer’s experience, if any.
For an extended success, you cannot overburden the customer with additional expenses. Therefore, maintaining a real-time delivery tracking system will help you save on the fuel bills and keep the delivery charges within an affordable limit for the customers.
Communication with the Customer
Customers want real-time tracking of the order. Therefore, a real-time delivery tracking system matter. Top e-Commerce verticals like Amazon, e-Bay, and Flipkart are using the proper tracking system to give the latest updates to the customers. When the tracking system is live, the e-Commerce portal provides the live feed to the customers.
As the demand for better tracking surges, the need for proper tracking software is also on the rise. Top e-Commerce giants want to create a transparent and interactive business-customer relationship. Even having better communication with customers can boost sales. The e-Commerce verticals are earmarking specific days of the month for up sales. On these days, they fix specific time-hours to place the order and get same-day delivery at lower costs than regular days. Amazon has a particular subscription offer to give same-day delivery to the customers. Competitors can do likewise for market capitalization. In this respect, they can trust the last mile delivery system to play a crucial role.
A robust last-mile delivery system demands minimal distance between the consumer and the warehouse. The concept of hiring local stores to ensure faster delivery will create a positive brand image for the company.
Top e-Commerce verticals are doing that for better consumer experience. They are establishing a local shop or warehouse in every town and cities to speed up the delivery process. Many e-Commerce stores use the Macy or Multi-Channel Retailer model for faster same-day delivery by limiting the miles between the warehouse and consumers.
As the distance reduces between the consumer and the warehouse, the companies can save significantly on labor cost and fuel consumption. In the US, the last mile delivery concept has evolved rapidly, and they are using local stores for faster delivery of the goods.
In the past, the brick & mortar concept had not seen the challenge of delivery to the customers. But with the increase in internet penetration and overuse of mobile phones for shopping, the need for a proactive delivery system matters for business growth and expansion.
Top e-commerce verticals push for giving that old brick & mortar experience to the consumers. In their pursuit, the role of the last-mile delivery system is both influential and transformative.