Last mile delivery continues to be one of the biggest challenges faced by courier and shipping companies. It also tends to be really expensive. In fact, around 53% of the total cost of shipping is accounted for by last mile delivery, according to an article on Business Insider. Some wonder how logistics companies are always trying to find technological solutions to improve this process.
Here are some ways to optimize last mile delivery.
1. Network of Distribution Centers
Having distribution centers located close to areas where a majority of the deliveries are made can improve the cost and time efficiency of last mile delivery. It can reduce fuel costs, empty miles, and driving time. It is also vital that you have the right number of distribution centers. If the coverage is spotty, it can lead to a higher probability of delays and reduced productivity, according to a blog post by Key Software Systems. It is also a good idea to take into consideration the weather conditions in the area. For instance, areas prone to tornados and floods can make deliveries difficult.
2. Optimized Delivery Routes and Scheduling
Robust courier delivery software that allows for route optimization can be a huge advantage. It uses GPS and traffic data to plan the most efficient delivery routes, minimizing idle time, the need for double backing on any route and avoiding traffic. The routes are planned in accordance with all the deliveries that are to be made in that area. They can also provide additional information, such as where to park the vehicle. This not only reduces delivery time, but also saves fuel. With such software, companies also get analytics about the vehicle and the driver, which they can use to improve their operations.
3 .Real Time Updates
With the help of tracking codes, it becomes possible to always know where a package is. You can update the customer with the help of emails or text messages. They can also track the package themselves. It increases the confidence of the customers in the process. In addition, real time updates on the vehicle can help fleet managers trouble shoot problems quickly.
4. Measure Your Performance
Last, but not least, it is important that you constantly measure your performance. Statistics, such as on-time delivery rates, can help increase accountability and productivity. Gaining insights from customers and surveys can also help in improving the delivery process.
The delivery process is one of the most important elements in ensuring customer satisfaction. In fact, 55% of the consumers feel that they are willing to switch to another brand if it provides faster deliveries, according to a Capgemini report.