WHY ARE SHIPPERS INTERESTED IN LAST MILE LOGISTICS FUNCTIONS?
In shipping and logistics, every mile counts. While many companies focus on the start of the journey, it is actually the last mile that can cause so many problems for the industry. According to some estimates, the cost associated with the last mile of shipping can account for up to 40 percent of the overall project. That is why more companies should learn how to properly leverage last mile logistics as part of their courier delivery software.
UNDERSTANDING LAST MILE LOGISTICS
Last mile logistics refers to the last leg of the delivery process. It does not have to be a literal mile. In some cases, it can refer to the last few blocks or the last 50 miles. The distance is irrelevant. Instead, the term describes the last carrier who delivers the package to its final destination. Many large shipping companies focus on traversing the greatest distances of their routes. Accordingly, the final leg is usually transferred over to smaller delivery providers. These logistics are unavoidable. However, there are ways to mitigate the cost and inconvenience with the proper technology in place.
WHAT CONSIDERATIONS IMPACT DELIVERY IN THE LAST MILE
Coordinating last mile delivery is based on numerous factors. First, it is important to pick providers that have the capacity to get the job done. If your company deals with smaller packages, the provider must have enough trucks and drivers to make timely delivery. Larger items can be even trickier. You need a provider that has the ability to transport larger objects on a local scale. Moreover, if the items need to be assembled upon delivery, then you will need to make sure that there are employees capable of completing such a task. With so many conditions, hiring the right company for the right price is easier said than done.
ESTABLISHING A SUPPLY CHAIN
This is all part of establishing a supply chain to streamline your shipping model. Shipping is about getting items from the vendor to the customer. As more people shop online, the demand for such a supply chain is more pressing than ever. The pressure for shipping companies is pronounced as people crave faster shipping speeds. This means that capitalizing on the last mile is critical to success. The supply chain costs money from start to finish. If you are using up too many funds on the last mile, then the entire supply chain will suffer. Customers do not only want their shipments faster. They want them cheaper, which means that shipping companies have to respond in order to survive.
LAST MILE DELIVERY SOFTWARE CAN HELP
The logistics involved with the last mile are significant. That is why the smart choice is to use dispatch management software with last mile delivery tracking included. This software allows you to hook up with the best local providers for fast, efficient service in the last mile. At Key Software Systems, many of our products account for the demands of the last mile. Contact us today to learn more.
