Last mile delivery is defined as the final leg of the delivery process – the moment where consumers finally get their products transported from the warehouse to their desired location, which often is homes. Last mile delivery is generally the most expensive and tedious process of the supply chain. The drastic increase in online purchases on e-commerce sites has led to higher expectations of online consumers. Their expectations of having products delivered on time or when needed have resulted in higher overall delivery costs for retailers. Therefore, companies are required to place more emphasis on delivering consumers’ products in the fastest way while keeping overall costs low.
Strategies to improve Last Mile Deliveries
- Effective Planning
With more and more companies offering same-day and on-demand deliveries in the market, consumers have higher expectations when it comes to getting their orders delivered on time. Consumers often encounter frustrations during the delivery process when they did not receive their products days after the estimated delivery date. This could be due to multiple factors ranging from late dispatching of products to uncontrollable circumstances like traffic delays. Therefore, logistic companies in Singapore have to optimize the planning phase in their back-end operations to ensure that orders can be delivered to the end consumers on time.
- Better Traceability of Products
Consumers nowadays want to be able to track their packages during the delivery process. The technology advancement in the logistics industry is capable of notifying consumers whenever their packages are picked up or arrived at a specific warehouse. While this type of data is crucial in identifying if a package is delayed or missing, many logistics companies are not providing traceability of products due to their lack of budget. Therefore, having a system that is capable of tracking the package’s location will create value to the consumers, during the last mile delivery process.
- Leveraging on High-end Technology
Other than the capability of tracking a package’s location, it is also valuable to consumers when they are able to track the condition of their packages which are easily influenced by temperature changes. Packages like frozen foods require smart sensors that can maintain an optimal temperature to conserve quality during the entire delivery process. Adding to high-end technology, logistics companies should also research on weather forecasts to plan if extra packing materials like dry ice are essential in preserving the quality of packages.
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