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Cut Down Your Business’s Last-Mile Delivery Costs And Maintain Profit Margin

Cut Down Your Business’s Last-Mile Delivery Costs And Maintain Profit Margin

The last-mile delivery solutions aim to transport the goods to the final destination. Last-mile delivery plays a vital role in enhancing customer satisfaction. However, the most challenging part about the last mile delivery arises in reaching end-users on time which triggers the high transportation expenses for the businesses. This can cause a potential decline in profits for companies.

Let’s have a look at what exactly drives the last mile delivery costs:

  • Shipping costs
  • Failed deliveries
  • The inefficiency of last-mile deliveries

Way to reduce last-mile delivery costs

Constantly optimizing your delivery routes

The best way to minimize your cost is to have an optimized route plan. The distance between the two drop points will determine the cost of delivery. Thus, it becomes necessary to optimize the multi-stop route, so that the time to be consumed to make all the deliveries can be as minimum as possible. With the latest technology, it has become easier to notify the drivers in real-time about the new deliveries that come and simply re-assign them by changing the delivery routes. This way last-mile delivery solutions can be a huge success for your company and cuts down your delivery costs as well.

Real-time updates to customers

Providing real-time updates to the customer would take the customer experience to another level. Customers want to stay updated and know exactly what is happening especially with the packages they order. They want to know it all from shipping, packaging to the delivery route, and time. It’s also a way of building their trust in you.

With last-mile delivery service and logistics solutions, it has become easier to offer automatic status updates to customers. With tracking software, customers can get notifications when the delivery is ready to be shipped or about to deliver. They get an estimated time of arrival and also enables them to view the real-time location of their delivery person. This not only enhances customer experience and transparency but also helps in reducing your last-mile delivery costs. Since the customer will more likely to be present during the arrival of the package, it would decrease the number of failed deliveries.

Locate warehouses in urban areas

Another way to reduce last-mile delivery cost is by locating warehouses in urban areas and around end-user places. There are different types of warehouses depending on businesses like sun warehouses, x-dock, and so forth. These urban warehouses make it very convenient and quicker to ship products to the end-user by being nearer to the highly populated areas. Products are transported from production sites and stored in these urban warehouses and then delivered to the end customers. This process helps in reducing the last mile delivery costs which would otherwise rise rapidly and also improves the speed and responsiveness of the supply chain.

Verified deliveries

It has become simple and easier to obtain the proof of deliveries these days with the help of last-mile delivery technology. It provides the record of delivered shipment, receiver’s information and signature and where the parcel was dropped. The mobile applications of the last-mile delivery system the drivers can easily collect essential information like signatures, barcodes, photos, and notes within a matter of seconds.

The collected information is kept in records that can be accessed later to provide you with the essential insights which will help you identify hurdles, make operations streamlined, and verify deliveries.

Provide more delivery options

Multiple delivery options will enhance the customer experience and also reduces your last-mile delivery costs. Now how will it happen? For instance, a customer is buying your product online and he/she will only have one option available which is same-day delivery. Many would think, what could be better than that! but it can backfire in circumstances when a customer is leaving home early before the arrival of the package and would return late, hence there would be no one available to receive the package when delivered. This results in a waste of time, money, and energy.

The majority of customers prefer convenient time slots over faster delivery privileges.

Real-time reports and analytics

Real-time delivery management tracking software enables you to get reports of real-time data like average time per task, idle time, miles per task, distance covered, number of tasks completed, no. failed deliveries and no. of successful deliveries; which then helps you make insight-driven business decisions.

Such software provides you with graphical data which makes it easy for you to analyze better. The last-mile delivery software’s reports and analytics also show you the overall performances of drivers.

In Summary
In the logistics business and supply chain, the last-mile delivery is the costliest phase of all. Many businesses fail to keep a tap on it and if managed well, the businesses are sure to achieve success. Considering the hurdles that get in the way in last-mile deliveries, overcoming those hurdles with time can help the business reach heights and earn more profit.

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