Final Mile Delivery Explained: Problems & Solutions

May 23, 2022 | Blog, Routing & Dispatch

Final mile delivery explained: problems and solutions

The expectation of the online shopping experience is drastically changing. Speedy order fulfillment and distribution are no longer on the wish list but are essential to meet customer demands. Any logistics company looking to thwart the ever-looming threat of Amazon Prime’s final mile delivery requires it to be a priority.

Retailers and logistics companies are racing to develop new technologies and experimental supply chain models. They want to improve their last mile delivery by increasing parcel volume, expediting deliveries, and customer satisfaction while cutting costs. Unfortunately, the biggest change is delivering same-day or final mile delivery.

What Is Final Mile Delivery?

The product’s journey is long as it starts from a warehouse shelf, on the back of the truck, and finally, to the customer’s doorstep. Last mile delivery is the final step that confines the customer from receiving the products they ordered. Final mile delivery aims to offer high customer satisfaction but is often costly and time-consuming at every shipping stage.

The five critical steps to a successful final mile logistics operation are:

  • Step 1: Customers place orders using the retailer’s centralized system
  • Step 2: Shipment of all the goods orders takes place to the main transportation hub to await delivery
  • Step 3: Drivers get assigned to orders based on the most efficient truck routes to the customer location
  • Step 4: Warehouse staff scan orders then load them into vehicles
  • Step 5: The customer gets their orders and captures delivery proof for confirmation.

Challenges of Last Mile Delivery

Final mile logistics may seem straightforward for most businesses. However, this is never the case. Businesses of all sizes and shapes face significant challenges in their final mile processes.

The process handles multiple routing options, changing road conditions, differing driver skills, varying tuck capacities, service times, and more. The level of complexity is high, making last-mile delivery inherently inefficient. It isn’t easy to maximize orders and on-time delivery while solving these challenges.

Last mile delivery is often a time-consuming and costly part of the shipping journey. However, every business’s priority is to leave their customer satisfied after the long delivery process. Most companies will have to increase the costs to reduce inefficiencies to keep customers happy.

But just how expensive is the final leg of the delivery process? Studies show that last mile delivery makes up about 53% of the total shipping costs, and the business has to cater for about 25% of those costs. Sometimes it can cost even more for supply chains plagued with inefficiencies.

Solve Final Mile Delivery Challenges with Elite EXTRA

Optimizing final mile shipping to save on cost and boost deliveries using the right technology solution is possible. Improved last mile operations offer speedy delivery, on-time, and a great delivery experience.

The best solution for savvy business owners is creating a fleet of delivery management solutions. These do the heavy lifting and allow staff to pay attention to other aspects of the business. You can achieve advanced route planning, better data analysis, electronic proof of delivery, and real-time communication with a reliable technological solution.

Are you interested in getting an advanced technological solution? Contact Elite EXTRA to get a reliable software suite to optimize your logistics operations, impress your customers, and drive the bottom line.

References

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