Last-Mile Delivery is known to make up the majority of the delivery costs. Now when customers expect nothing but fast deliveries, it can be difficult for businesses to fulfil their demands without having to increase their costs; however, in this article, we will offer valuable tips that will assist companies in reducing their Last-Mile Delivery costs.
Last-Mile Delivery Benefits
Last-Mile Delivery, also known as final mile delivery, is all the operational capabilities that businesses have in place that ensure that they can meet the last aspect of the delivery process. This final aspect usually refers to moving goods from the distribution centre until it reaches the end-user. Last-Mile Delivery focuses on delivering products to customers in the fastest time possible. Last-Mile Delivery offers plenty of benefits for businesses such as:
1. Streamlined delivery process
The Last-Mile Delivery process can reduce the repetitive and time-consuming tasks involved in the delivery process. The result of streamlined delivery processes is a reduction in human errors that usually occur, eliminating verification issues and ensuring efficient load planning.
2. Route Optimization
Through delivery route optimization, businesses have the benefit of having the ability to calculate and then choose the best routes for deliveries. This ensures that you can save time as you will be able to avoid traffic hours and any route disruptions that might occur and that will slow down deliveries.
3. Better Order Management
Last-mile can predict any delays that might occur, and they can be communicated to customers beforehand so that they manage their expectations better. Customers will also be informed about the exact location and the time their order will arrive, ensuring that they are available to accept their order.
Reducing Last-Mile Delivery Costs
Last-Mile Delivery is well known for its high costs as there are always many things that can go wrong during the process, and that is why it is essential for businesses to have better plans in place to ensure that they can keep costs down. Here are some practical ways that you can make use of to reduce Last-Mile Delivery costs.
1. Auto-dispatching technology
One of the ways that can waste time during deliveries is having to dispatch and assign tasks to drivers, which can eventually become a serious problem. You can avoid this issue by using auto-dispatch technology that can give any new drops to the drivers that are close by, ensuring that the right driver is sent to the correct location and at the best time. Some technology allows you to set a limit of tasks that a driver gets so that they do not have to handle too many deliveries.
2. Include More Delivery Options
We are all aware that all customers have different needs and expectations, which also applies to deliveries. There are delivery options that have become popular such as same-day delivery, which is also expensive. Customers might order their products online, but they might not be able to receive them that day. This could translate to having more failed deliveries, which are also expensive. To avoid this issue, then businesses should offer more delivery options to meet their customer’s needs. Having more delivery options also means that the customer will have a better experience with your business.
3. Optimize Delivery Routes
Another aspect during Last-Mile Delivery that leads to having higher costs is having long distances in between drops, therefore to reduce the costs involved, it is essential that there is less time spent during deliveries. One of the ways that you could achieve this is by optimizing routes. The optimization of routes can be done by considering the different data points involved in the delivery process, such as time, distance, traffic and the driver’s capacity. All these issues are considered to choose the best delivery routes, which also occurs in real-time, ensuring that they avoid delays that appear on the road each day.
4. Communicate With Customers During Deliveries
We are constantly being exposed to so much information, which leads to customers having high expectations when it comes to being informed during the delivery process. Lack of communication is one of the easiest ways to lose your customers; therefore, you should ensure that your customers receive regular updates about the orders. These updates should be sent from the time their order is received, and they should receive updates about the order’s estimated delivery date and time. Offering this information ensures that the customer has a positive delivery experience, but it is also one way to reduce the chances of there being delivery failures as they would know what time to expect their packages.
5. Verify deliveries Using Electronic Proofing
It has already been emphasised that customers require greater visibility during delivery. Another way to achieve this is by offering last-mile services such as electronic proof of delivery. Electronic proof of delivery assists in keeping track of when deliveries were made, who signed for the package and where the package was dropped. This ensures that there is always a factual record of deliveries, which can prevent false claims from dubious clients that they did not receive their package as all the information to prove this will be collected.
Electronic proof of delivery is especially important during this time as it ensures that deliveries are contactless, which helps promote the safety of both the driver and the customer. The information collected through barcodes, signature-proofs and photo-proofs can also assist in identifying any roadblocks in deliveries that your business could use to streamline operations.
Various factors lead to high Last-Mile Delivery costs. However, by following the tips offered in this article, you will be able to eliminate the issues that lead to these high costs while also guaranteeing customer satisfaction.