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Factors Affecting The Last-Mile Delivery Logistics

Factors Affecting The Last-Mile Delivery Logistics

Consumers are increasingly turning to e-commerce to fulfill all their shopping needs. A common expectation of every online shopping experience is speed. This has to lead the businesses into developing new technologies and experimenting a little. The last-mile delivery is one of those new ways of supplying the products.

What is Last Mile delivery?

Last-mile delivery is the process of transporting goods right from the transportation hub to the final delivery destination. The final delivery destination is mostly a personal residence from where the order was placed. The goal of integrating last-mile delivery in the delivery industry is to provide products to the end-user as early and fast as possible. It also aims to provide customers with a seamless shopping experience.

What is the last mile delivery logistics?

These days consumers are turning to e-commerce for all their shopping needs. A good shot for logistics companies in collaboration with retailers to leave a mark in the consumers’ minds. All kinds of businesses are riding to develop new technologies and experimental supply chain models that increase parcel volume and somehow become the best in the last-mile delivery courier service industry.

Consumers are now very well aware of the concept of crowdsourcing through different platforms like Airbnb. This has become the most challenging part of e-commerce businesses. Consumers are now eyeing their low startup costs and improved customer experience which ease their last-mile delivery woes.

With the latest technologies and crowdsourcing; the retailers, consumers and logistics partners can connect directly with the local couriers who are using their own transportation to make deliveries. This ensures that the consumers get their items whenever and wherever possible and helps companies get their items faster. With an opportunity to make on-demand and scheduled deliveries that ensures that customers are home, the need for the second or third attempt is eliminated.

Factors that affect the last-mile delivery logistics:

1. Customer expectations

Many times customers demand not only quick deliveries but same-day deliveries. This level of expectation affects the efficiency of last-mile delivery services. These customers are even ready to pay extra amounts for same-day delivery which makes them end up disappointed by the courier companies. Increased customer expectations encourage businesses to strategize delivery routes in order to deliver at the earliest. In case they fail to do so it costs them the result of poor customer satisfaction.

2. Issues from customers’ side

There are plenty of customers who order what they want online but end up adding inadequate information about themselves. Things that delay the delivery could be adding an incomplete address, isolated areas, narrow locations and even absence of customers in many cases. Such issues are responsible for the delay in deliveries. These customer issues also result in increasing potential delivery costs.

3. Types of goods

At times even the type of goods becomes a challenge to cargo bike courier services when transporting them through different places. Fragile items like glassware, artifacts, antiques, perishable goods, and other tangible items have a risk of getting damaged in transit. It requires a little care and some safety measures for the damage-free delivery of these fragile items while delivering them to their final destination.

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4. Infrastructure

The infrastructure becomes the point of concern for mindful delivery in developing countries. Delivering to the final destination inevitably involves long journeys through inefficient routes which might fail in making journeys go as planned. It also adds to the fuel costs due to the extra time spent in driving around for the delivery of the parcels. Thus poor infrastructure becomes a barrier in the last mile delivery industry, especially in developing countries.

5. Lack of visibility

Customers appreciate the visibility they get about their own parcels. With real-time tracking, customers rest assured of the status of their deliveries and thus consider the companies to be more reliable. Those companies that possibly have poor visibilities are sure to suffer due to the lack of presenting a detailed view of their operations. Consequently, companies have to rewire their work methods in order to provide visibility to customers and assure total customer satisfaction.

6. Transparency

One of the most common challenges faced by courier companies is maintaining transparency. What customers expect from these companies is an end-to-end overview of their products that are being shipped. Just the route visibility may be a piece of incomplete information provided to customers which may be dissatisfaction in a customer’s mind. Customers expect to see the exact location of the driver who is to deliver their products, an accurate estimation of time required in delivering the parcel and the location of the parcel delivery.

Generally, companies use cloud-based tracking solutions that keep the customers updated about the status of their parcel. This helps in giving prior information to the customers about any disruptions in delivery before they lodge such complaints or feel disappointed about the quality of courier service.