Jason Mitchell
Bungii | Enterprise Solutions
Retailers have more ways than ever to orchestrate final mile delivery. That’s a good thing, because delivery performance has never been more important.
Research shows that more than half the factors driving customer value in omnichannel retail today are related to logistics. (McKinsey & Company) And expectations increasingly extend beyond traditional parcel shipments to big and bulky products.
For retailers, that makes choosing the right final mile carrier critical. Parcel and LTL (less-than-truckload) carriers are in most cases essential, but newer technology-enabled, on-demand delivery networks give shippers another option for closing service gaps.
Here’s how the delivery landscape is changing, what retailers should expect from providers, and how the right strategy can improve both customer experience and operating performance.
Your final mile carrier options have changed
Traditionally, retailers have relied on three primary options for final-mile deliveries: parcel carriers, LTL carriers, and local or regional box-truck providers. On-demand carriers have emerged as a fourth option.
Parcel carriers tend to transport poly bags and boxes. Shipments generally arrive in a step van or delivery van, with a single driver dropping the package at the door without an appointment. The model works efficiently for small parcel, but larger shipments can incur surcharges without necessarily receiving a higher level of service.
LTL carriers are typically used for larger freight shipped on pallets or in crates. Deliveries may be made by straight trucks equipped with liftgates and are often geared toward commercial facilities or curbside residential delivery. Special handling and delivery requirements can result in accessorial charges. Because freight is consolidated with other shipments, it can also experience multiple touches in transit.
Local and regional box-truck carriers can provide more specialized final-mile service, particularly for larger products. But creating an ad hoc network of local providers can make it difficult for national retailers to maintain consistent costs, service levels, visibility and customer support.
On-demand carriers provide another alternative. Technology-enabled, asset-light delivery networks such as Bungii connect retailers with local delivery capacity across multiple markets through a single platform. That model can provide greater flexibility and customization, particularly for large parcel or big and bulky deliveries that don’t fit neatly into traditional parcel or LTL networks.
Design a final mile strategy around your customers
The final mile may be the concluding stage of the delivery process, but it’s far from the simplest. It can be the most consequential because it’s the point at which the brand physically meets the customer.
A poor experience at that moment can overshadow everything that came before it. 85% of consumers say a poor delivery experience reduces their willingness to buy from that retailer again. (AlixPartners)
That raises the bar for every shipment. This includes big and bulky deliveries that have traditionally not been subject to the same high standards as parcel deliveries for tracking, responsiveness and customer support.
The best final-mile strategies today are designed around what the customer experiences, not the way freight has always moved in the past.
Ready to make final mile delivery a differentiator?
How final mile carriers help enhance the customer experience
Speed matters, but today’s delivery experience is about more than speed. Customers also expect convenience, reliability, visibility, and control. Final mile carriers can help retailers deliver those benefits in several ways.
On-demand delivery: Customers want products quickly, but timing also needs to be convenient. This becomes particularly important with large products that customers must be home to receive. On-demand networks draw from available local capacity, making same-day delivery and shorter appointment windows possible without requiring every delivery to be scheduled far in advance.
Dedicated customer support: WISMO (Where Is My Order) queries, problems and delays consume retailer resources. A provider that handles delivery-related communication and exception management can resolve issues without involving customers or the retailer’s customer-service team.
Shorter delivery windows: Customers no longer have to accept 3-to-5-day waits or endure 5-to-8-hour windows for large items. Businesses can offer shorter delivery windows by utilizing final-mile carriers like Bungii that connect available delivery pros with orders the same way ride-sharing companies pair passengers with available drivers in real-time.
Specialized technology platforms: Tech-enabled final mile carriers simplify the delivery process by providing pricing, scheduling, and tracking in one place. Retailers get visibility into every order, while customers receive live delivery updates..
Analytics: Final-mile-specific data also provides an opportunity for continuous improvement. Bungii, for example, enables shippers and customers to monitor more than a dozen delivery milestones in real time. Analytics dashboards can help businesses identify patterns, measure performance and uncover opportunities to improve their programs.
The benefits of getting final mile delivery right
Improving the delivery experience isn’t just a customer experience initiative. Choosing the right final mile carrier services produces operational and financial benefits as well.
More precise delivery: On-demand networks can support same-day service and tighter delivery windows, helping retailers deliver when customers expect their purchases rather than simply getting them there as quickly as possible.
Greater visibility: Real-time tracking extends parcel-like visibility to shipments that traditionally haven’t had it, including big and bulky products and palletized freight.
Lower costs: Right-sizing the transportation mode can help retailers avoid large-parcel surcharges or LTL accessorials. Freight that falls awkwardly between parcel and LTL may be better suited to a provider specifically designed for big and bulky freight.
Better service: On-demand deliveries tend to be point-to-point and not one of many on a parcel or LTL route. That enables on-demand carriers like Bungii to tailor the delivery experience to the product and the customer with white glove service options like room of choice, installation, basic assembly and packaging removal.
Fewer claims: Final mile carriers like Bungii streamline shipments by reducing the handoffs, loading and unloading that is common within parcel and LTL flows. This helps protect fragile products from being damaged in transit.
Broader coverage: Instead of independently managing dozens of local carriers, retailers can access local delivery capacity through a single network. Bungii, for example, has more than 15,000 certified delivery pros in 125 U.S. markets.
Better exception management: Breakdowns, missed pickups and other disruptions are inevitable. An on-demand network like Bungii’s provides redundant capacity that can make it easier to recover quickly when something goes wrong.
Route optimization: Local networks and technology-enabled routing enable final mile carriers to pinpoint nearby drivers, plan efficient routes and provide responsive service. These efficiencies help retailers control costs while improving delivery speed and maintaining high service levels.
How to choose the right final mile carrier
Not every final mile carrier is right for every shipment. Evaluate potential providers against six criteria:
- Freight expertise: Match the provider to your shipment profile. Parcel networks work well for small and lightweight packages, while LTL is well suited for multiple pallets. Big-and-bulky delivery providers offer an alternative for final mile shipments that fall between parcel and LTL and weigh roughly 50–2,000 pounds.
- Geographic coverage: Ensure the carrier has extensive coverage in your key markets. Leading final mile carriers give you a local advantage nationally. Bungii for example provides on-demand delivery in 125 markets across the U.S.
- Technology and integration: Evaluate carriers’ technology solutions for flexible integration options, real-time tracking, scheduling conveniences and AI-powered features.
- User experience: Carriers’ technology platforms should make deliveries easier for your team and your customers. Look for intuitive features, useful analytics and delivery visibility.
- Reliability: Ask for KPIs covering on-time performance, damage claims and reschedules. Driver vetting and ongoing performance monitoring are equally important.
- Customer support: Evaluate the quality of customer support the carrier provides. A responsive partner with live support can reduce delivery inquiries while protecting the customer relationship.
Optimize your last-mile delivery strategy with the right partner
Final-mile delivery shouldn’t be treated simply as the last transportation leg. It’s one of the most visible and critical touchpoints in the customer experience. It’s also one of the few logistics functions your customer experiences personally.
That creates an opportunity.
Look for the gaps in your current delivery network: shipments with excessive surcharges, long delivery windows, limited tracking, high claims rates or inconsistent service. Big and bulky products may be an especially good place to start.
The right final mile carrier can help close those gaps while improving visibility, service and operational efficiency.
Reach out to our team to explore how Bungii can help you improve your delivery operations.
