What is Last Mile Delivery?
Last-mile delivery is the last leg of an item's journey to its final destination. This is often from a supply chain hub to a consumer’s home, but could also be to a business address.
A good example of last-mile delivery are the parcels received from online purchases, with the last part of the delivery being made by a person with a van or car. But last-mile delivery could be the final leg to a business premises, often by a heavy goods vehcile (HGV).
What is the last-mile delivery problem?
The last mile of delivery can be the most challenging due to terrain; rural, suburban, or metropolitan locations require different last-mile strategies for fulfilment. For example, a large HGV will not work in a metropolitan environment where parking is difficult and congestion charges may be prohibitive, while in rural locations there could be a large distance between delivery addresses.
If you have ever bought an item online and then monitored its delivery and wondered why you have to wait so long for it to arrive from “out-for-delivery” until it is delivered to your door, then you will already appreciate that the last-mile delivery problem is efficiency, with so many multiple stops and so many parcels to deliver a route needs to be efficient. Ideally the density of deliveries should be as high as possible to minimise the miles and cost per delivery of each consignment.
The rapid increase in online sales during the Corona virus pandemic, created a surge in the number of last-mile deliveries to consumers who were having to isolate or work at home. Retail premises being shut and the demand for online sales increased the importance of last-mile delivery logistics and resulted in 1/3rd of sales by value (ONS: Nov 2020 36%) being purchased online. Although online sales slowed, now that life has returned to normal they are still 26% of all retail sales, 5% higher than before the pandemic and still climbing at around 1% per year.
Descartes’ 2024 home delivery consumer sentiment study shows that 39% of consumers have increased their purchasing, but 67% had experienced a delivery problem and of those 63% took some form of negative action against the delivery company or retailer.
Read to full Home Delivery Study here.
Technology and last-mile delivery
Just like other areas of business technology is also playing its part in improving the last mile of delivery. Delivery planning and route optimisation software is reshaping how companies organise the last mile, helping them reduce delivery miles and operational costs.
The adoption of internet-based software or SaaS solutions is making the management of last-mile deliveries easier, from the optimisation and efficiency of the routes, to tracking the delivery vehicle and even digitising proof of delivery at the final destination..
The software integration of these stages in the last-mile delivery process is enabling improved levels of service, generating customer loyalty and repeat purchases alongside efficiency savings and a reduced carbon footprint.
Improving last-mile delivery for the customer
Vague or open delivery information e.g. sometime tomorrow will lead to stress and uncertainty for the customer. Failing to keep your customers informed about delivery times and updating them as their delivery approaches leads to dissatisfaction and missed or failed deliveries.
Providing customers with a clear method of communication such as emails or SMS messages and updating them on their delivery, reduces anxiety and improves the customer experience with the delivery process. This can be achieved with software automatically sending messages to the customer at each stage of their delivery. This will also improve first-time delivery rates and reduce the time at each call due to the customer being made aware of the imminent arrival and being ready to take delivery.
Communications can be further enhanced by providing a portal through which the customer can communicate special instructions or even reschedule the delivery if the timing is not suitable for them.
Read our blog to discover more - Why uncertainty affects customer delivery experience and how to fix it.
How to improve last-mile deliveries for the future.
A poor delivery experience, as we discovered in our home delivery consumer research, can lead to the customer refusing to buy from your company again and even turning to social media to express their feelings.
If your deliveries fail to impress it is important to know why as quickly as possible, enabling them to be corrected for the future. Equally, if a delivery went well and praise is given, it is just as important to pass that on to the driver and delivery team.
Obtaining real-time feedback, or transactional feedback, as soon as possible after the delivery will provide genuine insights into each customer’s experience and enable proactive corrective action to be taken when issues arise.
Read our blog - Benefits of transactional feedback for last-mile delivery
Customer engagement software can transform your deliveries, from improving first-time delivery rates and customer satisfaction with your service to using the customer feedback to improve future deliveries By fostering strong customer engagement, businesses not only enhance the overall customer experience but also reduce operational costs.
Read more about Customer Engagement
If you’re struggling with last-mile deliveries, customer satisfaction or fleet operational costs then contact us to find out how to keep up with delivery demand and improve your last-mile.
