How Last Mile Optimization Can Boost Your On-demand Delivery Operations

Monday

20 Jan, 2020

The doorstep delivery experience has entered a paradigm shift with the rise of e-commerce. Think of Amazon and same-day / next day delivery is what strikes the mind first. With the emergence of on-demand delivery, the customer is now in the driving seat. In today’s digital age, customer expectations from sellers, retailers, merchants or stores is ceaseless characterized by same-day delivery, free delivery, preferred time slots, multitude of payment options and real-time tracking of orders with a smooth door-step experience.

on-demand delivery

Image credits – freepik.com

The success of your on-demand delivery rests largely on the shoulders of how your last-mile logistics perform. Customers are now expecting shorter wait times, which has forced logistics companies, retailers, grocers, to redefine their delivery management. To extend the best last-mile logistics experience in tandem with your customer expectations is a real world challenge characterized by rising costs, growing service requirements and heightened supply chain complexity. How can companies address this to create a value-based offering?

 

Here is where the role of technology comes to play. On-demand delivery is a complex function, one which is not just dependent on the delivery guy. There are many aspects of last mile delivery management, which can be greatly optimised with the help of advanced algorithms and artificial intelligence. A good delivery management software can transform the performance of your last mile logistics. Digitally optimized delivery management system makes the entire process efficient and accurate.

 

But first let’s briefly understand what Last Mile Logistics is all about.

 

What is last mile delivery?

 

Last mile logistics is the last leg of a customer’s online shopping journey. In plain words, once a customer orders online, last mile logistics is everything that goes in between till the final order reaches the customer’s hands. The customer experience with on-demand delivery has also evolved over the years. No more glorified promises. Time-definite deliveries, that perform on the chosen slot on first attempt, is the current norm. Here is where technology can be crucial to deliver a better delivery experience, one in sync with customer expectations.

 

E-commerce users are on the rise. To compete with giants like Amazon and the like, companies in the last mile delivery space need to pay greater attention to their last mile logistics network. Studies show that buyers abandon companies that fail on first attempt deliveries. However, take the example of Amazon Prime and you will see that they are willing to pay a little extra for ‘same-day delivery’. And this is the reason why big companies like FedEx, Amazon, and UPS thrived to master the art of last mile logistics as a way of customer experience.

 

Role of technology to enable optimal Last Mile Logistics

 

The main goal of a last mile delivery solution is to ensure faster and on-time delivery of an order to the  end customer, making the entire experience delightful and hassle free. A centralized system, which aggregates data of all the players in the delivery journey, is the core to an ideal last mile experience. From the time an order is received to actually delivering the order to the customer, technology in the form of an efficient delivery management system can help in optimizing every step of the on-demand delivery process.

 

Here’s a quick overview of ways in which a delivery management system can improve last mile logistics:

 

1. Resource Planning

 

Based on the order received, companies can use advanced software to plan the right resource matrix. This helps in allocating the right resource mapped with the location accessibility, vehicle availability and open slots. Proper resource allocation, fleet optimization and route scheduling can greatly help in reducing operating costs of completing a delivery. A tech enabled omnichannel fulfillment system is extremely useful in making last mile logistics reliable and consistent.

 

2. Delivery Route Optimization

 

Geo-coding locations helps in planning the optimal route for a specific delivery taking into account real time updates like traffic and roadblocks. Artificial intelligence helps in optimizing delivery routes and leads to better fulfillment of SLAs by making the whole process more efficient.

 

3. Smart Shipment Sorting

 

Automated software brings a process to shipment sorting and helps to plan them according to their location and priority. For smaller shipments that need expedited delivery, companies can then connect with same-day messenger services or on-demand fleet providers. For oversized shipments, companies will have to create a distribution network accordingly.

 

4. Alerts and Live Tracking

 

Being proactive with your customers is an important aspect of successful last mile delivery. With the help of live tracking, regular alerts can be passed on to the customer. If there are any deviations, the customers can get instant alerts so that they are constantly in sync with the entire delivery process. This reduces the number of in-bound customer service calls and leads to improved customer confidence.

 

5. Doorstep Experience

 

A state of the art last mile logistics solution ensures a hassle free doorstep experience by providing capability to handle returns and cancellations, cash and card management at point of sale, electronic proof of delivery as image, signature, timestamp and geo-coordinates

 

6. Customer Satisfaction

 

Higher SLA compliance can be achieved by using last mile delivery software by tracking ETAs, reducing paperwork, intelligent routing, deep analytics etc. which helps to identify SLA breaches, delay causes, and wrong shipments. This helps in addressing chinks in the  delivery system which results in less complaints and increased customer delight.

 

Last mile logistics is the key to make sure an order reaches the hands of your customer when he is expecting it. Technology can close this gap. There are several options available in the field of delivery service software. Given the challenges in the landscape, it is advisable to choose a forward thinking technology, one that analyses and acts on data, to deliver a great unboxing experience to your customers.

 

Want to cut your last mile delivery costs and streamline the entire door step delivery process? Sign up for Dista Delivery today!

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