Every business aims to meet its customers’ expectations, as this is what defines a successful organization. There are problems that might occur in the supply chain that might prevent the business from meeting customer expectations, which might leave customers unhappy. It is then crucial that there is better management of last-mile logistics.
We will look at the role that last-mile technology plays in improving last-mile logistics.
1. Increases Shipment Visibility
The greatest challenge faced in last-mile delivery is visibility. However, this challenge is addressed using last-mile delivery software as businesses will be able to gain real-time visibility regarding the location of their vehicles. They will be able to see when they divert from the pre-determined route and the time they spend idling. The ability to gain real-time visibility allows logistics and supply chain managers to have better control over shipments while also reducing theft and spoilage from occurring. Visibility also makes it easier for businesses to predict where shipments should be at a specific time.
2. Greater Transparency
Data is crucial when making decisions and is also the key to ensuring that last-mile logistics is efficient. Data can be used to reduce delivery times and the number of mistakes that are made. The data will be able to determine where errors are made and what causes slowdowns. Last-mile delivery technology will also show supply chain managers information regarding where orders are being made and who will deliver the orders, and when the delivery will be expected to be made.
3. Optimized Delivery Routes
When it comes to route-planning, computers will always do this better than human beings can. Last-mile delivery software allows businesses to optimize their delivery routes in real-time which can contribute to them avoiding unnecessary delays that occur on the road. The software also will enable drivers to receive constant updates regarding the best routes that will lead to faster deliveries. Last-mile delivery technology will also assist drivers in increasing the deliveries they can make, assisting them to contribute to cost savings through saving fuel that is used idling.
4. Enhances Customer Engagement
Last-mile delivery technology assists customers in gaining end-to-end visibility about their order’s status. From the moment they place their orders, they will receive delivery information until they receive their packages. The constant communication and visibility ensure that customers have all the information that they need at their fingertips. Communication contributes to greater transparency and improves the customer’s trust in the business. There is some last-mile delivery technology that allows customers to directly chat with the delivery agents handling their packages which is effective for better coordination of deliveries.
5. More Flexible Deliveries
Customers have different schedules, and they lead different lifestyles. Therefore, businesses must cater to their specific needs. Though a particular delivery time might be popular, it will not be convenient for all your customers. Last-mile delivery technology enables customers to choose a different delivery location and time for their packages, which is convenient for them if their schedule had to change and they were unable to pick up their package at the location they had initially chosen. Flexible delivery ensures that there are fewer failed deliveries and that customers are always satisfied.
6. Increases Scalability
One of the ways that last-mile delivery technology ensures that businesses can make deliveries during peak businesses hours is through onboarding third-party delivery. There will be times when multiple deliveries need to be made during peak business hours, and in-house capacity is exhausted. The only solution to ensure that the deliveries are fulfilled will be through onboarding deliveries to third parties. Last-mile delivery software also assists businesses in increasing the number of deliveries that they make each day as it plans routes based on the number of orders in a particular location.
7. Offers Predictive Analytics
Predictive analytics are an indispensable tool that organizations can use as they collect their historical data. It is then transformed to derive insights regarding what customers are likely to order. The insights gained can also be used to allocate logistics resources. Predictive analytics may offer insights that can be used for decisions relating to inventory allocation between warehouses or sourcing shipping containers.
8. Increases Profits
Through scaling per day deliveries, increasing productivity, optimizing routes and improving customer loyalty, last-mile delivery software can reduce fleet management expenses and the fuel consumed while ensuring customer retention. All the savings that businesses experience will also lead to cost savings and an increase in profit margins.
Last-mile logistics is all about starting and finishing well. Last-mile delivery technology ensures that businesses can keep their customers happy while remaining competitive, so it is crucial for companies who want to have a more efficient supply chain and better logistic operations.
We also consider The Impact of eCommerce Trends on Last-Mile Delivery.