What Are The Best Logistics Practices For Last-Mile Delivery?

 

Summary

We live in an era of "immediate gratification." Everything has to be here, right now, and right away!

Similarly, as customers, we expect our items and services to arrive as soon as possible. As a result, businesses must continuously come up with fresh and inventive ways to meet client expectations.

Amazon and other eCommerce behemoths have limitless resources, but smaller businesses must compete with them if they are to survive. This puts ongoing strain on the logistics and distribution companies that deliver the goods. Last-mile delivery is under particular strain within the larger supply-chain network, due to the various complexities and hurdles it must overcome.

As a result, success depends on creating and sustaining best practices for managing last-mile logistics.

Top 7 best practices for companies to improve their last-mile delivery logistics

1. Automated route optimization: 

Perhaps the most significant advancement of modern last-mile delivery logistics solutions is their fully automated route optimization feature. Of course, having the ability to automate all related operations such as driver dispatch, live vehicle tracking, and real-time notifications for both internal and external teams, as well as customers, comes with this broader automation.

After accounting for a variety of factors that influence route planning, such as traffic, distance, weather, vehicle type, and driver strength, the software generates the most optimal route (s). Remember that the most "optimized" route isn't necessarily the fastest, cheapest, or shortest, but rather the one that identifies the route(s) after balancing all the variables that affect it.

The route-planning software then tracks and monitors fleet movement in real-time using signals from hardware components installed on the fleet vehicles. Any unexpected deviations, emergencies, or last-minute modifications can be handled as quickly as feasible.

2. All logistics data should be stored centrally: 

The logistics operations of today's supply chains are extensive and complicated. They also have the pleasant capability of capturing, recording, and storing large volumes of data, thanks to the fact that they are increasingly automated and "brought online." This data, which spans the entire spectrum of operations, can then be chopped and diced to get insight.

It's vital to use a capable last-mile delivery software to manage all delivery operations and timetables — the program keeps all data on a centralized server that can be accessed from anywhere in the world. Access can be allowed at several levels, ensuring privacy and security.

Last-mile logistics is substantially improved when important tenets of last-mile data are available via a holistic dashboard for Logistics Managers. The following are some crucial elements:

• Details on inventory management
• Stakeholders in the logistics network
• Percentage of on-time deliveries that failed or were late
• Fuel use, driving habits, and safety precautions
• Patterns of weather and traffic

All of these data buckets have a big impact on customer satisfaction and overall operational efficiency. When data is stored centrally in standardized formats for simple access, flaws and inefficiencies can be easily identified. This, in turn, gives information for making informed decisions.

Another certain technique to ensure efficient last-mile delivery logistics is to use convenient reverse logistics for order returns and exchanges.

3. Real-time tracking:

There are various advantages to using current delivery-management software. Its capacity to track fleet movement in real-time is one of its key features.

Logistics managers can track the exact location of their cargo, drivers, and cars in real-time and have complete visibility into their operations. This allows them to deliver real-time updates to customers and keep them informed about the status of their packages. Customers have matured, and they now expect to be kept informed about deliveries at all times.

Customers can watch the progress of their drivers in real-time using a tracking link supplied to them via SMS/notifications. As part of delivery management software, fleet vehicles are equipped with hardware modules that make this possible. This also lessens the workload for customer service representatives.

4. Creativity, convenience, and choice:

Innovation, after all, is the source of success! And, as the supply side (manufacturers, logistics businesses, and brands) continue to think outside the box and test out new models of customer convenience, the combination of growing consumer behaviors and the ease enabled by contemporary technology continues to reach new heights.

There are a plethora of imaginative approaches that are continually being tested, such as delivery lockers (Amazon), rapid delivery (Instacart), or businesses that fulfill their online orders via a local store by using it as a "warehouse" to serve both in-store and online consumers.

An omnichannel order fulfillment approach reduces costs, speeds up delivery, and keeps consumers satisfied.

5. Real-time changes to delivery windows:

Customers' modifications to delivery windows are incorporated on the fly using current delivery and logistics technologies. In addition, automated adjustments to delivery status notify clients in real-time of supply-side changes. Keeping clients informed with such promptness assists in satisfying delivery expectations, achieving customer happiness, and establishing a loyal customer base.

6. Managing the drivers: 

Any logistics solutions company's drivers are a valuable asset. They have to deal with bad weather, traffic jams, unhappy clients, demanding bosses, dangerous road conditions, and the list goes on. A well-oiled logistics organization takes good care of its employees, maintains transparency and fairness, and establishes strong communication links with them.

They must be informed about changes in schedules, delays, and road congestion (etc.). Failure to do so would result in delays, significant driver attrition, and a negative impact on customer satisfaction.

7. Monitoring driver performance: 

Monitoring driver performance, as a result of the preceding statement, becomes an important part of assuring driver performance.

It would benefit both parties to establish defined goals and communicate them to your fleet drivers. Drivers are fully aware of what is required of them and the standards to which they must adhere. This aids in the creation of a clear work environment, which in turn aids in the improvement of driver performance.

Some of the major criteria that help are safe driving protocol, timeliness, behavior, and client feedback on their performance (among others). Remember that dangerous drivers can pose a risk – and a liability – to your company.

Due to the expanding eCommerce trade—and the recent pandemic—companies are frequently obliged to use drivers who aren't totally professional or sufficiently experienced. Drivers are also under constant pressure due to severe time limitations most of the time. This could lead to dangerous driving, stress-related negative behavior, poor health, and mental health problems (etc.). It could also lead to high fuel use and poor customer service, both of which have long-term consequences.

Automated driver dispatch: 

Incorrect information or bad scheduling could be the result of human mistake. Such problems, which could have far-reaching effects, can be avoided by employing a contemporary fleet-management system.

Drivers are, at the end of the day, important pillars on which logistics and distribution organisations stand. They work obscenely long hours, are separated from their families for days or weeks at a time, and are continuously exposed to road and weather hazards. A logistics company's primary task is to set up a fair and reliable system to support them.

Conclusion:

As can be seen, adhering to a comprehensive best-practices program is crucial to success. A critical component of this approach is the use of contemporary, automated last-mile delivery software.

Know More About Last-Mile Delivery Management Software