Optimise Your Supply Chain: Understanding Last Mile Delivery

“Last mile delivery” refers to the movement of goods from a transportation centre to their ultimate destination and, every day, thousands of courier jobs across the country form part of this process.

Why is Last Mile Important?

The popularity of online shopping has led to an increase in demand for parcel shipments, and the figure is growing every year. Customers expect these packages to arrive within quicker and quicker timeframes, with most wanting goods to arrive within three days and many expecting retailers to offer a same-day service. While it is expensive, it’s essential to get this service right. Consumers can all too easily find alternative options if a company isn’t up to par.

Customer Expectations

Customers want this part of the distribution process to be fast, secure, convenient and specialised. They also expect precise tracking of their order and some level of insurance in case something goes wrong.

Companies that provide next-day or same-day delivery are in high demand, as are those that offer a guarantee that packages will arrive safely (or compensation). Consumers want fast deliveries but they also want an assurance that their goods are not damaged or lost. Offering a low surcharge for insurance provides peace of mind and, similarly, precise order tracking provides up-to-date information on a package. Customers ideally want real-time tracking details so they can keep an eye on their parcel’s progress.

The Five Steps

The process can be broken down into five key steps:

·         Customer requests are logged into a centralised system

·         Goods arrive from a supplier at a transportation centre

·         Tasks are assigned depending on routes

·         Individual items are scanned then loaded into vehicles

·         Goods reach the end user and proof of delivery is obtained.

Common Problems

The most common problems businesses run into as part of the last mile delivery process are damaged goods, lack of efficiency, lack of transparency and high costs.

In a world where technology is omnipresent, customers expect more than ever before. Although tracking codes used to satisfy end users’ need for transparency, customers now want to know where their parcel is at each stage of the process – which can cost logistics companies dearly.

Technological Solutions

The challenges that slow down the process of courier jobs or increase costs for delivery companies can be tackled with the help of technology. For example, the endless improvement of e-commerce sites has transformed the ordering of goods into a streamlined process needing very little human involvement. Some e-commerce companies like Amazon are testing out the use of drones to carry small packages, as part of a highly automated system. These unmanned aerial vehicles can deliver lightweight goods less than an hour after an order has been placed.

Understanding the importance of last mile delivery is the first step in optimising your supply chain. By making the last leg of the journey more efficient, you can save money and ensure customer satisfaction.

Author Plate

Norman Dulwich is a correspondent for Courier Exchange, the world's largest neutral trading hub for same day courier jobs in the express freight exchange industry. Over 5,300 member companies are networked together through the Exchange to fill empty capacity, get new clients and form long-lasting business relationships.