Jason Mitchell
Bungii | Enterprise Solutions
The bar for last mile delivery continues to rise. While customers expect fast service and tight delivery windows for everything they buy, retailers struggle to keep up. As it is, most retailers only expect 76-80% of their shipments to arrive on time. (Supply Chain Dive)
With these low expectations, it’s clear that performance among last mile delivery companies varies widely.
From coverage area to on-time percentage, there’s a lot to consider when evaluating last mile carriers. To decide which last-mile carrier is a good fit for your business, here are five factors to help you determine how a potential partner will perform and help you stand out from the competition.
1. The right KPIs
Data doesn’t lie. With the right performance metrics, you can see which last mile delivery companies are setting the bar. Here are three key performance metrics to carefully review:
- On-time percentage (OTP): Delivery windows matter: 35% of shoppers say a late delivery will make them abandon a retailer permanently and 11% say an early or unexpected delivery will make them do the same. (Bringg) You can’t afford to partner with a company that misses delivery windows. Look for providers with a +90% OTP.
- 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%. This is especially important when you’re shipping big and bulky items where the risk of damage is highest.
- 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, a carrier with a reschedule rate below 5% will put you well ahead of the competition.
Bungii is dedicated to providing best-in-class, big and bulky delivery. Our specialization and strict driver selection process push our KPIs to the top of last mile delivery companies. This allows us to set new standards for last mile delivery. From a 95% on-time delivery rate to <0.2% 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 local partners you can count on in every market you serve. But not every last mile delivery company offers the reach you need. That gives you two options: spend the time and energy required to build a regional multi-carrier network or identify a leading carrier with nationwide coverage. Having one carrier to serve as a single point of contact saves shippers a tremendous amount of time and effort.
Ensuring all carriers meet your brand standards is another matter. 6 in 10 shoppers will blame the retailer for late deliveries even if the carrier’s to blame. It’s crucial to make sure potential partners have the coverage you need as well as the quality of drivers. Check their vetting process carefully. As an example, Bungii performs an 18-point verification of drivers. And only 12% of applicants are accepted.
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 15,000 certified delivery pros across 125+ markets, we can deliver to customers in hours, not days, with short delivery windows and high on-time performance.
3. Speed and precision
Delivery companies are relentlessly focused on speed, because, frankly, it matters more than ever. 57% of U.S. shoppers say they want same-day or faster delivery and returns within the next five years. (Chain Store Age)
Retailers need to be able to get products to consumers faster than the competition or risk losing the sale. That makes establishing a reliable, on-demand delivery network a strategic priority for retailers. That means all their products. Consumers’ expectations for fast delivery now extends to every category. This is driving retailers to deliver same-day or next-day delivery on goods ranging from household items to furniture.
That expanded capability requires a different kind of network that provides on-demand access to drivers specializing in delivering big and bulky items, too. Speed is more about precision when it comes to delivering products like furniture or appliances. Not only do consumers not want to wait days for their delivery, they want short delivery windows and the ability to choose when their orders arrive.
97% of consumers define fast delivery as same-day delivery.
Capgemini Research Institute Study
On-demand networks are the ideal solution for providing real-time responsiveness in locating a driver who can pick up a load and deliver it immediately. This is a strong contrast to traditional large-item delivery solutions that are typically scheduled days (or weeks) in advance, co-mingled with other freight and delivered within a 5–8-hour window.
Bungii’s proprietary technology allows deliveries to be quickly assigned to a nearby driver, who will then pick up and deliver the shipment within two hours. Through our same-day delivery options, two-hour delivery windows and live order tracking, we help businesses turn delivery into a differentiator.
4. Flexible capacity
Part of identifying the right carrier is about determining if they have the right tools for the job. From pickups to straight trucks, there’s a wide range of asset classes to consider when evaluating final mile carrier services.
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. Not every shipment is a good fit for traditional parcel or LTL carriers. Surcharges and accessorial charges can add up. Overhandling and consolidation of freight increase the risk of damage and claims, too.
Sometimes a box truck with a two-driver team is overkill. Right-sizing your shipping solution can lead to lower costs and better service. The right carrier for your business will have the vehicle and driver needed to transport your goods safely and efficiently while providing the hyperlocal service that the final mile demands.
Bungii’s network of over 15,000 drivers includes cargo vans, pickup trucks and trailers. This mix of nimble yet spacious light assets is built to handle large-item delivery with the speed and hands-on service today’s consumers demand. The flexibility of our equipment and delivery pros allows us to provide an unparalleled level of service for customers with a delivery solution that’s designed to meet shippers’ needs.
5. Customer support
The last mile often makes or breaks the customer experience. However, it’s less about perfect execution and more about having the right processes in place when a shipment is delayed or delivery challenges occur.
Shippers essentially have 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. But companies have to ask themselves how much time they spend answering WISMO (where is my order?) queries and more. 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 365 days a year, with an average response time of just 90 seconds. Many of those queries come from our delivery pros who can rely on Bungii’s customer service associates for help without involving customers or shippers. Resolving issues before they become customer inquiries supports outstanding customer experiences, while saving shippers time and money.
Choosing the right delivery partner
With delivery expectations and supply chain costs as high as they are, establishing a reliable and cost-effective final mile strategy is critical. Use these five criteria to winnow down the winners.
Once you’ve identified the top carriers, you can create a network that aligns your business needs and customer expectations.
Make your goal establishing delivery standards that ensure an excellent customer experience in every market and for every size product you sell.
When you’re ready to address your big and bulky deliveries, reach out. Our team is happy to help you develop a program that delivers a huge competitive advantage.
