It’s become one of the most important phrases in logistics: final mile delivery. It’s the process of companies (of all types and sizes) getting products from the store or warehouse to the customer’s front door. Winning the last mile race requires companies to meet the growing consumer demand for on-demand and same-day deliver.
Yet, final mile delivery is complex. Products and services stretch across the globe, and maximizing speed and monitoring efficiency is critical as well. In some situations, last-mile delivery solutions must also consider what goes beyond that front door, with some customers looking for (and expecting) delivery options that include white glove service.
Whether your business is just launching delivery options or looking for a way to speed up delivery time with the current services you offer, take a closer look at final mile delivery and how customer demands are reshaping last mile logistics.
What is final mile delivery?
Last mile delivery is the final step in the supply chain process, when a product is delivered from a warehouse or retail location to the final destination, which is generally a customer’s front porch. It is the most expensive and time consuming component of nearly all delivery processes because of how complex it is. Yet, it is also the most important component of the process because it puts the product in the customer’s hand.
Reports indicate that the cost of last mile delivery has become a real challenge for many companies, making up between 41 and 53% of the total shipping cost.
Key steps in the delivery process
To fully understand the complexity of last mile delivery, it’s helpful to understand the steps involved. Here are the key touchpoints that take place from the time an order is received until it is delivered.
- The customer places an order. This is placed into a centralized system within the company.
- The goods are shipped to a transportation hub, retail location, or distribution center.
- The order is prepared and scheduled for delivery.
- Orders are staged and loaded for delivery.
- Vehicles are loaded and delivery instructions are provided to drivers.
- The delivery driver drops those items off to the customer, sometimes providing white glove or item assembly.
The final miles of that journey are what we are referring to here. While this process seems simple and even efficient, with numerous manual and automated steps, complications can arise.
Looking to expand your final mile network?
How customer demands are reshaping delivery
Customers tend to view delivery as part of the overall experience with a brand, and 87% of shoppers have said they’ll stop shopping with a brand after two poor delivery experiences. They see the company they are ordering from as equal to the delivery driver who pulls up to the house. That means that to ensure customer satisfaction with your product and company, you must provide a seamless delivery process.
So why is this last mile so critical to customer experiences?
Customers demand speed
Depending on the actual product type, consumers expect products to arrive within 24 hours whenever possible. In a recent study 81% of shoppers move to competition when delivery options aren’t fast enough. Speed is a core differentiating reason consumers buy from one company or the next. Who can get it there fastest? Who can make on-demand deliveries so they do not need to leave the house?
Customers want low shipping costs
Amazon, in particular, has created a scenario in which consumers now expect not just fast delivery but also free delivery. While offering free delivery is not always possible, low shipping costs continue to be a driving force behind why consumers choose one company over another.
Mistakes made in last-mile delivery are very expensive
For companies, managing logistics costs is becoming increasingly difficult, but the long-term costs that come with a second-rate carrier can be detrimental. Last-mile delivery mistakes mean that products must be rescheduled for delivery, and that means higher transit costs, added fuel costs, and even more challenges to making the customer happy. In urban areas, where traffic is a constant struggle, or rural areas where there are less drivers readily available, this is only amplified.
Real-time insights are critical
Customer expectations also include the need for real time updates and insights. Customers want to know not just that their package is arriving on a specific day but when it will arrive. They also like to be able to see their delivery driver en route, which allows them to plan accordingly.
Challenges of large item delivery
While carriers can generally deliver parcels with ease, the bigger the package or delivery is, the more challenging it is for last mile delivery companies to meet customer expectations. Larger items are harder to place on trucks, include special instructions, and often require bringing them into the home rather than setting them on a doorstep. This complexity is where larger carriers struggle the most.
Bungii is built for big and bulky
Our company’s ability to offer on-demand delivery for big and bulky items within the parameters of customer expectations is second to none. With a driver network that includes more than 10,000 delivery pros across 75 US markets, we can serve 90% of the US population. That type of coverage is critical in ensuring that companies get these larger items where they need to go efficiently and quickly. More so, we offer customers real-time visibility throughout the entire delivery experience, which eases their minds and improves outcomes.
With Bungii, companies get omnichannel fulfillment with a wide range of delivery options. This includes white glove service as well. With our network, we can get product to customers fast, minimizing the time consuming process of manual labor investments for large and bulky items.
With today’s consumer needing faster service, more reliable support, and cost-effective delivery to their door, on-demand services like Bungii help businesses extend their logistics network without the capital required to operate an in-house fleet.
Meeting growing final mile expectations
Last mile delivery continues to be the most important but most expensive component of the shipping process. Utilizing the best strategies for last mile delivery means partnering with companies that can help you, streamline operations, manage costs, and improve customer satisfaction. If you’d like to explore how a final mile big and bulky carrier can help you drive sales and improve customer satisfaction, let’s talk.
