Think delivery is a straight line from point A to point B? Think again! The last mile is where the real action happens, and it’s responsible for 53% of total delivery costs.
The last mile, handled by last mile carriers, is where delivery gets real. It’s that final stretch where your package makes its way to your doorstep.
It’s not as simple as it seems. Last mile carriers deal with traffic, tight schedules, and all the little surprises that come with getting orders right where they need to be.
So, why does this stage cost so much, and how do last mile carriers make it all work?
We will break down what makes the last mile so important and how these carriers keep things running smoothly.
What are Last Mile Carriers?
Last mile carriers are the delivery services responsible for transporting goods from a distribution center or local hub to the destination, usually the customer’s doorstep.
They handle the “last mile” of the delivery process, which is often the most complex and costly part of the journey.
Think of them as the bridge between businesses and their customers, ensuring packages reach their destination accurately and on time.
From handling individual parcels to managing bulk deliveries, last mile carriers play a crucial role in the logistics chain, especially in industries like e-commerce, food delivery, and healthcare.
Without last mile carriers, the seamless delivery experience we’ve come to expect would be nearly impossible!
For these reasons, it’s critical to most companies’ bottom lines that last mile delivery is both expedient and cost-effective.
Tips To Achieve the Perfect Last Mile Delivery
Last mile delivery can make or break a customer’s experience.
The final stretch of delivery is often the most challenging. But with smarter planning and last mile tracking, it doesn’t have to be.
By keeping a close eye on your deliveries, you can improve speed and accuracy.
Here are some practical tips to achieve an efficient last mile delivery process and make it seamless.
1. Reduce Delivery Costs with Smarter Routes
Using technology to optimize routes can significantly reduce delivery times and fuel costs.
Here’s how:
- Route Optimization Tools: Create efficient paths for drivers, cutting down on travel time and boosting productivity.
- Last Mile Tracking: Monitor deliveries in real time to improve accuracy and reduce delays.
- Simulate Delivery Models: Explore options based on cost, service quality, fleet type (e.g., parcel carriers or private fleets), and sustainability impact.
- Telematics and Smart Apps: Assist with safer navigation, track driver performance, and measure real-time emissions.
By integrating last mile tracking with these advanced technologies, last mile delivery companies gain valuable insights that streamline the entire last mile delivery process.
2. Expand Your Delivery Network
Over the past couple of years, rising costs, growing capacity demands, and challenges in service quality have pushed businesses to rethink their delivery strategies.
Many have turned to larger, more flexible networks to meet these demands. This includes incorporating gig drivers, delivery service partners (DSPs), and offering diverse options like same-day or next-day deliveries.
For instance, companies like Lowe’s have embraced innovative platforms to improve their operations, leveraging last mile delivery tracking to connect with a broader network of on-demand drivers.
With 35+ years of experience in the logistics industry, Newl specializes in providing quick and reliable deliveries.
Our services are designed to optimize your last mile delivery, offering real-time tracking, efficient processes, and a network you can trust to get the job done right.
3. Use the Right Delivery Vehicles
Choosing the right vehicle for last mile delivery is essential for boosting efficiency and reducing costs.
Here’s how you can make smart choices:
- Smaller vehicles for urban areas: Options like cargo bikes or electric scooters are ideal for congested city streets. They cut fuel expenses, reduce emissions, and improve delivery speed.
- Larger vehicles for longer routes: Ground freight works well for routes requiring more space and capacity, especially for bulkier shipments.
- Use a well-organized system: Pair your fleet with an efficient last mile sorting and distribution center to streamline operations and reduce delays.
Newl provides reliable ground, air, and ocean freight options, so you can choose the right vehicle for your specific delivery needs.
With the right mix of vehicles and optimized last mile sorting and distribution centers, you can enhance delivery performance while keeping costs in check.
4. Provide Flexible Delivery Options
Meeting customer expectations for convenience and flexibility is essential in today’s competitive market.
Research by Salesloft shows that 89% of consumers are more likely to return after a positive service experience.
Here’s how you can enhance your delivery offerings:
- Offer same-day or next-day delivery: These options are great for time-sensitive customers who value speed.
- Allow delivery scheduling: Give customers the ability to choose a specific delivery time or location that suits their schedule.
- Include alternative delivery locations: Provide options like pickup points or locker systems, which are convenient and often more cost-effective for both businesses and customers.
By tailoring your delivery services to customer needs, you can boost satisfaction and loyalty.
At Newl, we support your business with a variety of delivery options, including ocean, ground, and air freight, ensuring you can meet diverse customer demands effortlessly.
5. Fulfill Orders from Multiple Locations
While forecasting what customers want and when they’ll buy has improved, predicting how and where to fulfill those orders is a different story.
That’s where a well-organized last mile distribution and sorting center can make all the difference.
Here’s how fulfilling from multiple locations can help:
- Use real-time data: Rely on accurate, up-to-date information to plan fulfillment more effectively and respond to customer demands.
- Ship from the nearest location: Reducing the distance between your inventory and your customer lowers transportation costs and speeds up delivery. A last mile distribution and sorting center ensures these shipments are processed quickly and accurately.
- Improve inventory management: Distribute stock across multiple locations strategically to ensure products are closer to where they’re most needed.
With optimized last mile distribution, you can streamline operations and enhance customer satisfaction.
Newl offers extensive warehousing facilities across North America, giving you the flexibility to fulfill orders from the closest location and serve your customers better.
Do You Need Your Last Mile Carrier to Go the Extra Mile?
When Amazon introduced 2-day shipping, it changed the game all across the e-commerce and brick-and-mortar retail industries.
Every company that made deliveries directly to customers either had to scramble for a way to match (or at least almost match) Amazon’s new speedy promise or get left in the dust.
This singular move by one company changed what customers expect from delivery. Over time, those expectations have only grown.
The pandemic delivered yet another major shake-up to the last mile delivery industry. All of the sudden, no one was doing their own shopping, and everyone was relying on home deliveries.
Everything from grocery staples to new furniture and everything in between were showing up on people’s doorsteps.
One report by Forbes showed that the top 500 companies experienced a 45.3% year-over-year increase in online sales in 2020.
Now, customers simply expect 2-day or even same-day shipping. Real-time package tracking, simple returns, and many more “extras” that were the exception and not the rule a decade ago are standard practice now.
Finding the Right Last Mile Carrier
When you’re seeking out final mile delivery, you’ll want to choose a carrier that covers your delivery area and covers it well.
- It’s important to keep in mind that national and international final mile carriers, while convenient when it comes to coverage, may not offer the same level of service in every region.
- Another important point you should consider when seeking out a quality last-mile carrier is visibility. Customers want to know where their package is and how long it will take to get to them.
- Ask potential candidates about their real-time shipment tracking technology and how they deliver updates to the customer.
In today’s world, last mile delivery can make or break a company in terms of expenditure or reputation. Finding the right balance between the two is key.
Need help developing or streamlining last mile delivery? Backed by 35+ years of experience in logistics and warehousing, Newl knows how to make your last-mile delivery faster.
Contact us to schedule a consultation to see how we can help your company reach its last-mile delivery goals.
Final Thoughts
Last mile delivery is where businesses truly connect with their customers.
By focusing on smart solutions like using the closest locations and optimizing your sorting centers, you can reduce costs, speed up deliveries, and leave a lasting positive impression.
It’s all about making small changes for big results.
Frequently Asked Questions
1. What is Amazon’s Last Mile?
Amazon’s last mile refers to the final phase of its delivery process, where products are prepared for dispatch and sent directly to customers.
During this stage, goods are sorted at Amazon’s fulfillment centers, organized for delivery, and loaded onto vehicles like their signature delivery vans.
These vehicles follow carefully planned routes designed to maximize efficiency and speed, ensuring that packages reach their destinations on time.
Amazon’s focus on optimizing the last mile plays a significant role in maintaining its reputation for fast and reliable delivery.
2. What is the Last Mile Delivery Cycle?
The last mile delivery cycle is the final step in a product’s journey from business to customer.
It begins when an item is picked from a warehouse or distribution center, loaded onto a delivery vehicle, and transported directly to the customer’s location.
This stage, often referred to as the last mile, is crucial because it directly impacts customer satisfaction.
Efficient last mile delivery ensures that orders arrive on time, completing the cycle smoothly and leaving a positive impression on customers.
3. How to Calculate Last Mile Delivery?
Calculating last mile delivery costs is a straightforward process and a vital metric for delivery companies.
Start by dividing the total number of deliveries completed within a specific timeframe, such as a day, week, or month, by the associated costs of making those deliveries. For example, if 500 deliveries cost $5,000, the cost per delivery would be $10.
Companies aiming to improve profitability focus on reducing this cost by optimizing routes, increasing delivery density, or leveraging technology for better efficiency.
Lowering the cost per delivery has a direct impact on boosting overall profitability.