How to Make Last-Mile Logistics Easier

 Summary

Rapid technology advancements and ever-changing customer tastes characterize today's world. As a result, firms and goods become obsolete almost as soon as they hit the market! There has never been a time when the rate of attrition has been higher.

With the rise of e-commerce behemoths like Amazon and their incredible delivery speeds like "24-hour delivery" and "Same-day delivery" becoming the norm for consumers, organizations in the supply chain, logistics, and distribution industries are under tremendous pressure to deliver products on time.

And, within this bigger logistical network, the last leg of the supply chain, referred to as "last-mile delivery," is the most difficult, costly, and has a direct impact on customer satisfaction.

As a result, logistics and transportation organizations would be wise to compile a list of best practices for simplifying their last-mile operations and use it as a compass to guarantee they meet the required efficiency standards.

I. Why do last-mile logistics pose so many challenges?

The logistics and distribution industry bears the burden of our internationally competitive, modern era, which is characterized by rapidly changing consumer preferences, fast obsolescence, and resource scarcity. They are continuously under pressure from growing fuel prices, changing weather conditions, regulatory demands, and driver shortages, to name a few.

To make matters worse, controlling the last mile of delivery operations is a completely new beast! Not only is last-mile delivery the most affected by supply-chain vicissitudes as well as demanding – and, dare I say, fickle-minded! – customers, but its intricacies also make it the most expensive leg of the delivery chain. It's no surprise that it accounts for about a third of total logistical expenditures.

The final stage of the supply-chain network through which items travel before being delivered to their final destination, such as a customer's home, is known as last-mile delivery.

However, there are techniques for businesses to manage last-mile deliveries so that they may give outstanding customer service while also running an efficient and lucrative supply chain.

II. Streamlining your last-mile logistics: best practices

Let’s look at the top 5 ways:

1. Select suitable technology:

We live in the technological age, and it would be impossible to survive these days without it. However, there are numerous solutions accessible, and making the wrong decision could result in firms adopting technology that is incompatible with their business processes. This would have the opposite effect on efficiency, which might be terrible. Consider compatibility with your business operations, as well as adaptability, functional range, and service reliability, to mention a few factors when evaluating your technology demands.

2. Establish robust operating procedures: 

The cornerstone of effective operations is establishing operating benchmarks and assessing performance against these measures on a regular basis. Begin with a situational analysis of the current situation, compare it to best practices developed by studying comparable companies and their operating ratios, eco-system ratios, and so on), and develop a set of reliable metrics – such as engineering standards, service times, and load times – to monitor your own performance on a regular basis.

To collect, analyze, and monitor such data-driven performance, modern last-mile software is equipped with in-depth data-analytical capabilities.

3. Accurate forecasting and planning:

Customers nowadays are spoiled for choice, as the competition for consumer preference and loyalty heats up every day. Companies lure customers all the time with promises of "24-hour delivery," "same-day delivery," and now, "10-minute delivery"!

Every day, they anticipate faster, cheaper, and more frequent delivery! As a result, logistics and manufacturing firms must sharpen their planning and forecasting skills. Consumers expect delivery windows that are clearly specified, as well as a variety of delivery and payment choices. You may meet all of these objectives and achieve client satisfaction with careful planning.

The last mile of a supply-chain network, sometimes known as the "last mile," is riddled with difficulties and inefficiencies. It provides around a third of the total logistical costs.

4.  Manage transportation costs:

The last mile of a supply-chain network, sometimes known as the "last-mile," is riddled with difficulties and inefficiencies. It provides around a third of the total logistical costs.

5. Performance measurement:

As previously said, the first step toward achieving efficient operations is to establish tight operating norms. Service times, on-time percentages, projected vs. actual loads, and driver productivity are all frequent ratios. The next stage is to determine what is working and where improvements can be made. By continuously monitoring performance, gaps can be identified and processes can be tweaked to reach the desired results.

III. Streamlining last-mile visibility: some challenges

• Poor visibility on-ground:

For logistics companies, keeping track of on-the-ground procedures and getting visibility and transparency is always a struggle. Team managers are based in the offices, given assignments to fulfill, and expected to do so. Poor performance is frequently the result of a disconnect between the office and on-site staff.

• Legacy (manual) systems: 

Manual methods for daily operations and planning are just insufficient to keep up with today's complicated activities. Automation is unavoidable.

• Poor insights: 

Manual procedures, as an extension of the previous point, do not provide sufficient insight to make appropriately informed and effective decisions.

IV. Case Study: Optimizing compliance and driver productivity

Situation:

An Indian company that is changing the way people buy and sell secondhand automobiles works with a large number of drivers who pick up and drop off cars for consumers. The company hired a reputable logistics and transportation company to help with last-mile deliveries and logistics. With a presence in 70 locations, its head-office workers normally coordinate with this network of drivers by phone calls, emails, or SMS to provide them their daily agenda.

Solution: 

The logistics firm was able to do the following with the use of computerized scheduling and route-planning software:

• Using in-depth data analytics, machine learning, and AI, optimize routes.
• Plan and assign daily responsibilities.
• Real-time optimization of driver and vehicle schedules. To save time, make sure the first drop-off is as close as possible to the driver's home.
• Get a sense of what's going on on the ground.
• With live tracking, you can keep track of daily deliveries and the supply chain.
• Make use of ePOD.

Result: 

Operating efficiency increased by 20%, and the number of drivers was cut by a third.

• Driver reimbursement was simplified because of the automated measurement of kilometers traveled.
• Drivers were able to deliver more things in less time.
• Driver behavior, compliance with safety regulations, vehicle utilization, and overall efficiency all increased dramatically.
• The use of an ePOD ensured proper record keeping, aided claims, and decreased malpractice.

Conclusion:

Clearly, providing clients with an outstanding experience, one that meets the all-important criterion of customer satisfaction, requires last-mile delivery. Maintaining best practices in last-mile operations, including the use of current tools such as last-mile delivery software, goes a long way toward providing a cost-effective and efficient logistics service.

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