In logistics, the last mile of an item’s delivery is often the most important step of the journey. It’s also the one where the most challenges typically arise. For retailers and distributors shipping products to customers or businesses, ensuring smooth and reliable last mile delivery is an essential part of providing a great customer experience, and that requires knowing how to overcome the challenges that this final leg of the logistics journey often presents.
In this ultimate guide to last mile delivery, we’ll cover all the essentials and link to resources where you can learn even more about last mile challenges, delivery best practices and the solutions that businesses can use to ensure that every shipment ends with a satisfied customer.
What is last mile delivery?
Also known as final mile delivery, last mile delivery is the final step in the supply chain where products are delivered from a store, warehouse, or local distribution center to a residence or business. While this leg of a shipment’s journey typically only requires short distances of travel, it also tends to be the most logistically challenging part of the delivery process since every delivery must go to a unique address.
Compared to the rest of the delivery process, the last mile is also much more customer-centric. Things like delivery windows and real-time tracking updates have to be managed with the customer in mind.
Lastly, it’s important to understand that last mile delivery can encompass a lot of different scenarios, including delivering an e-commerce order to a residential address, delivering large shipments of bulky items to a business address.
To learn more about what final mile delivery is and the challenges it presents, check out our article “What is Last Mile Delivery?”.
Last mile delivery best practices
Last mile delivery can be challenging, but there are several ways for businesses to make it less so. Here are three best practices that are key to making last mile delivery a smooth and reliable process:
1. Choose the right vehicle
The vehicle you use to deliver goods to their final destination can have a big impact on the last mile delivery process. When choosing which asset class is best for your needs, there are several important factors to consider. Things like space and weight requirements, fuel efficiency, cost, and scalability are all key factors to keep in mind if you want to create an optimized and cost-effective delivery program.
2. Choose the right delivery professional
It’s often overlooked, but the delivery professional responsible for getting deliveries to your customers can have a major impact on last mile delivery success. Not only is it important to choose delivery professionals who will get items delivered safely and on time, but it’s equally important to make sure they represent your brand professionally. Keep in mind that delivery has become a major part of the customer experience, and, in many cases, the delivery professional who shows up at their doorstep is the only face-to-face interaction that a customer will have with a company.
3. Leverage technology for reliable, on-time delivery
Timing and process optimization are everything when it comes to last mile delivery. Thankfully, these are two areas where technology can provide a helping hand. By leveraging machine learning algorithms, companies can optimize dispatch times based on peak hours, delivery routes, and real-time traffic for reliable, on-time delivery.
Check out this article to learn more about the best practices that will help you master last mile delivery.
Ready to upgrade your last mile delivery program?
Factors to consider when choosing a last mile delivery service
For many companies, partnering with a delivery service provider to complete last mile delivery is the most cost-effective and reliable way to provide a great delivery experience. With a delivery service such as Bungii, companies can leverage a pre-existing logistics network that spans the country without having to purchase and maintain their own fleet.
However, choosing which delivery service to partner with is a big decision. To ensure that you make the right one, here are some of the most important factors to consider:
Performance metrics
Data doesn’t lie. By looking at performance metrics, you can see which last mile delivery companies stand out and consistently deliver. Metrics such as on-time delivery and reschedule and claims rates can all help you evaluate how well, on average, a delivery service provider performs.
Market coverage
It’s obviously important to choose a provider that will be able to serve the markets where your customers are located. It’s also a good idea to consider future growth and scalability when evaluating which areas a delivery service provider covers.
Delivery speed
Now more than ever, customers expect to get their products fast. If you aren’t able to get your products to customers as fast as your competitors are, then you risk losing sales. On-demand delivery (which is defined as delivering products the same day) is now the expectation for many customers, making it important to choose a service that offers this degree of delivery speed.
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. Which one is best for your needs will ultimately depend on the type of products you are delivering.
Customer support
Customer support is a key part of the delivery process. When customers have questions about their shipment, someone needs to be there to answer them. You can either handle this in-house or you can partner with a delivery service that handles delivery support on your behalf. The latter option offers a lot of benefits, though, since it reduces your company’s administrative burden while also putting customer support in the hands of the people who are in the best position to answer customer questions about shipments.
For a more in-depth dive into these key factors, check out our article titled “Evaluating Last Mile Delivery Companies: 5 Factors to Consider“. Or, to learn more about how delivery services like Bungii help companies solve the challenges of final mile delivery, check out this article.
Managing last mile delivery costs
Keeping delivery costs low is a key priority for companies, and, despite the short travel distances, last mile delivery can often be the most expensive leg of the journey. There are obvious costs associated with final mile delivery (such as fleet maintenance, driver wages, and fuel costs), but there are also less obvious expenses such as failed deliveries and customer service that have to be considered and managed.
In many instances, the most cost-effective solution for companies is to leverage a delivery service that cuts costs by operating on the economy of scale. To learn more about managing final mile delivery costs, check out our article “Breaking Down Last Mile Delivery Costs: A Comprehensive Guide“.
Final thoughts
Last mile delivery is a vital thing for companies to get right, but it also presents a lot of unique challenges. We encourage you to connect with Bungii to explore how we help companies solve these challenges by providing reliable, affordable, and technology-driven last mile delivery services.
