Last-mile delivery really took off during the pandemic and in a rapidly expanding market, delivery trends shift as quickly as customer demand.
Market statistics show that the global last-mile delivery market is expected to grow by $143.75 billion during 2022-2026 slowing down to 13.1% during the forecast period.
Whilst growth in any market is positive, the rapid change in statistics was so drastic that this shattered the whole market. Only the businesses that managed to upgrade according to the changing trends survived.
Despite the enormous amount of orchestration required to get deliveries to their destination, problems are more likely to occur in the last phases of the process than at any other time.
The best way to reduce the likelihood of last-mile delivery errors is to understand what can go wrong and take precautions to avoid mishaps, so let’s delve into the most common challenges and potential solutions.
Customers want their goods, and they want them quickly. However, there is a large cost associated with getting goods to customers’ doorsteps, and when customers get to the checkout, they rarely choose to bear this cost on their own.
Last-mile delivery costs include labour, fuel, cargo carrier costs, and driver salaries. A failed delivery can heighten an already expensive process.
Some trends that contributed to the jump in expenses include:
Trends that made last-mile expensive:
- The dramatic shift from in-store shopping to ordering online caused customers’ expectations of rapid delivery to rise
- The increased importance of customer feedback prompted logistics to improve their services
- Large businesses devised offers to entice their customers, making it difficult for small logistics to compete
- A significant increase in online sales leads to a significant improvement in the service of logistics providers, driving costs up.
Retailers must therefore ensure that their delivery infrastructure runs as effectively as possible to avoid incurring increasing losses while yet offering the low or free shipping that customers demand.
The cost of last-mile delivery can be kept as low as possible by using route planning software that not only optimises for factors like fuel efficiency but also takes congestion and road closures into account.
Prioritizing preventative maintenance for your delivery fleet can reduce costs by lowering the risk of breakdowns and your exposure to reputational damage from the delays that such incidents inevitably cause.
Lack of Visibility
A major element of last-mile delivery is tracking. Customers want to know where their deliveries are, when they will arrive, and how long it takes to get from the manufacturer to their door. Your brand’s reputation is on the line when products are out for delivery, and one of the things that can irritate customers at this point is if there is a lack of communication or unclear delivery updates.
This is where last mile delivery tracking shines, enabling you to not only monitor the status of drivers in real-time, but also to include customers so that they are informed along with you.
The best part is that this can be automated, allowing changes to be sent out instantly and delivery timeframes to be shortened to a few hours or even minutes.
While there are many options for businesses in the modern era to communicate with their team members, this can become an issue when too many different communication channels are being used.
Consolidating your setup makes sense so that it includes a standardized tool that fleet managers and drivers can use to communicate with one another. The means you use to reach out to customers should also be integrated into this since a comprehensive strategy will be advantageous for all parties engaged in the last-mile delivery ecosystem.
One of the biggest difficulties that shipping and delivery companies face is timing. Businesses incur costs when they are unable to meet deadlines. Delays in delivery damage a brand’s reputation, boost customer attrition and hurt your business’s bottom line. Therefore, you need a strong last-mile delivery strategy that enables you to make deliveries on time. The answer is to develop a system for route planning and to guarantee openness and seamless communication at all levels.
Finally, if goods are damaged during transit, this can lead to angry customers as well as extra expenses for your business because returns must be processed, and replacements need to be sought.
Although careful calculations must be done, it might be wise to invest additional money on more durable packaging and driver training to reduce damage and waste as much as possible.
Storm5 Is Here To Assist You
We want to be at the centre of the Last Mile Delivery Recruitment boom as it continues to soar. At Storm5, our team of specialist recruiters are committed to partnering with the best businesses across the whole RetailTech and eCommerce space. Storm5 is here to assist you in finding the right senior talent for the right specialism., whether you’re a start-up or planning to scale up. If you are looking to expand your team, contact us.