Evaluating Last Mile Delivery Companies: 5 Factors to Consider

Last mile delivery companies are known for providing faster delivery options, custom service offerings, and dedicated customer support. Yet, not all carriers are equal, and with the final mile being arguably the most important touchpoint in the customer experience, you can’t afford to gamble with a second-rate carrier.

From coverage areas to delivery speeds, there’s a lot to consider when evaluating last mile carriers. To decide which carrier to hire, here are five factors to help you determine what will resonate with your customers and help you stand out from the competition.

1. Performance metrics

Data doesn’t lie. By looking at performance metrics, you can see which last mile delivery companies stand out and consistently deliver. Here are three key performance metric to consider:

  • On-time delivery: With nearly 9 in 10 shoppers moving to another brand after two poor delivery experiences, you can’t afford to partner with a company that misses delivery windows. Look for providers with a +90% on-time delivery rate.
  • Claims rate: Claims are costly and time-consuming. While accidents do happen, look for a carrier with a damage claim rate that’s less than 1% and that will own the claims process from beginning to end.
  • Reschedule rate: Consumers don’t have the time or patience for rescheduling, and every rescheduled delivery hurts margins. With large item deliveries reportedly rescheduled more than 50% of the time, look for a carrier that has a reschedule rate below 5%.

Bungii is dedicated to providing best-in-class, big and bulky delivery, as evidenced by our industry-leading 87 NPS. Our technology-driven service is allowing us to set new standards for last mile delivery. From a 95% on-time delivery rate to <0.1% claims rates and reschedule rates below 2%, we are making large item delivery faster, smarter and more cost-effective for businesses with big and bulky goods.

Evaluating last-mile delivery companies?

2. Market coverage

Whether you’re a regional retailer or a global e-commerce business, you need delivery partners you can count on. With rising delivery expectations–4 in 5 consumers move to the competition when delivery options aren’t fast enough–having an on-demand delivery network is essential. 

However, not all delivery services offer the reach you need, leaving you with two options: spend the time and energy required to build a regional multi-carrier network or identify a leading carrier with nationwide coverage.

While maintaining exceptionally high standards for its delivery pros, Bungii has built one of the most comprehensive delivery networks in the industry. With more than 10,000 delivery pros across 80+ markets, we can deliver to more than 90% of the U.S. population.

3. Delivery speed

The next factor to consider is speed. Delivery companies are relentlessly focused on speed because, frankly, it matters more than ever. Companies need to be able to get products to consumers faster than the competition or risk losing the sale. 

As a result, establishing a reliable, on-demand delivery network is a strategic priority for most retailers. The Amazon effect is driving many retailers to offer same-day or next-day delivery on goods ranging from household items to furniture.

97% of consumers define fast delivery as same-day delivery.

Capgemini Research Institute Study

In addition to fast delivery, consumers want short delivery windows and the ability to choose when their orders arrive. Studies show consumer satisfaction declines when orders are delivered outside the delivery windoweven when the order is delivered early–underscoring the importance of delivery accuracy. Ultimately, providing a high-quality delivery experience requires giving the consumer on-demand delivery options and transparency from loading dock to door knock.

Despite the challenges associated with large item delivery, Bungii believes big and bulky doesn’t have to be slow and clunky. With same-day delivery options, two-hour delivery windows and live order tracking, we help businesses turn delivery into a differentiator. Multiple point of sale integration options allow us to match orders with delivery pros in minutes while our technology platform helps us accelerate operations.

4. Asset class

Part of identifying the right carrier is about determining if they have the right tools for the job. From bicycles to box trucks, there’s a wide range of asset classes to consider when evaluating third-party delivery companies.

Your product assortment will help you determine what type of carriers you need to evaluate. Depending on the breadth of your product mix, you might need to establish partnerships with carriers in multiple categories. The right carrier for your business will have the assets needed to transport your goods safely and efficiently while providing the hyperlocal service that the final mile demands.

At Bungii, our asset class is designed to meet the demands of large-item delivery with the speed consumers demand. That focus allows us to provide an unparalleled level of service for your customers with a delivery solution that’s designed to meet your business needs. 

5. Customer support

Here’s one of the hottest topics in third-party logistics: customer support. With delivery being one of the most important touch points in the customer experience, you need a support plan that’s airtight.

This leaves you with two options: provide in-house customer service or partner with a carrier that offers delivery support. On the surface, the former appears to offer a more seamless experience and better brand continuity. However, providing in-house delivery support can increase the volume and complexity of customer inquiries, leading to higher labor costs.

"Bungii’s customer support is unlike anything I’ve experienced with other delivery providers. Their quick response times help us operate more efficiently and deliver a better customer experience."

Chris Stevenson

Director of Internal Control, Logistics & Distribution Centers

Alternatively, partnering with a last mile provider that supports the delivery process is often a more efficient and effective way to support your customers. Since the provider is facilitating the delivery and managing the driver, they are generally better equipped to answer questions and troubleshoot issues that may arise. 

At Bungii, we provide live support seven days a week, with an average response time of just 90 seconds. Our innovative support model streamlines the delivery process, significantly reducing order inquiries for our partners. Additionally, it ensures our delivery professionals get the timely assistance they need to consistently deliver 5-star experiences.

Choosing the right delivery partner

With delivery expectations at an all-time high and supply chain costs on the rise, establishing a reliable and cost-effective final mile strategy is critical. To identify the top-performing last mile delivery companies, carefully evaluate performance metrics, market coverage, asset class, delivery speed and customer support.

Once you’ve identified the top carriers, align your business needs and customer expectations with potential partners. Choosing a provider that not only meets but exceeds industry standards will help you turn delivery into a competitive advantage.