In today’s fast-paced world, online shopping has become an integral part of our daily lives. With the convenience of ordering products from the comfort of our homes, it’s no surprise that the e-commerce industry is booming.
However, the success of online shopping depends on the ability to deliver products to customers quickly and efficiently. This is where the last-mile delivery comes into play.
It is often the most complex and costly part of the supply chain. According to Deloitte, last-mile delivery accounts for a staggering 41% of total supply chain costs. This blog post will discuss some of the challenges associated with last-mile delivery and how businesses can navigate them to make their delivery operations more efficient.
Inefficient Route Planning
One of the most critical factors in last-mile delivery is route planning. The overall success of last-mile delivery relies on efficient route planning to ensure delivery drivers can deliver packages to customers in the shortest time possible.
However, most route planners optimise routes solely around postcodes, which can lead to errors. Drivers spend a lot of time locating customer addresses, which increases fuel costs, lengthens delivery times, and decreases customer satisfaction.
With Delm8 Route Planner, on the other hand, drivers can optimise their routes using actual addresses, ensuring accurate deliveries, saving time and reducing costs for a more efficient process.
Unsuccessful Deliveries
Unsuccessful deliveries can make last-mile delivery more costly in several ways.
Firstly, suppose the delivery driver cannot locate the recipient or the delivery address. In this case, they may need multiple attempts to deliver the package successfully. This can result in additional fuel and labour expenses.
Secondly, if the package is returned to the distribution centre due to the delivery not being successful, the delivery company may need to bear the additional cost of re-shipping the package to the customer. This will mean additional labour and transportation costs.
Thirdly, unsuccessful deliveries can also result in customer dissatisfaction, which can negatively impact the reputation of the delivery company. If customers have a negative experience with a delivery company, they may be less likely to use their services in the future, resulting in lost revenue and decreased customer loyalty.
Variation & Number of Stops
One of the most significant hurdles in last-mile delivery is the volume and variability of stops a driver must make during a single route. The number of delivery locations a driver has to visit can significantly impact the time it takes to complete a delivery route, making the last leg of the delivery process more complex. This is especially true when time-sensitive deliveries must be made within a specific timeframe.
Urban areas can pose additional challenges for drivers making multiple deliveries. Factors such as traffic congestion, parking restrictions, and limited access to certain areas can cause delays and disrupt delivery schedules.
To overcome these challenges, delivery companies can leverage advanced route optimization software to create more efficient delivery routes, set realistic delivery expectations with customers, and utilize software that can accurately pinpoint addresses. These strategies can improve the overall efficiency and effectiveness of last-mile delivery operations, helping companies meet the needs of their customers in a timely and cost-effective manner.
Hard to Find Properties
When a delivery driver cannot locate a customer’s property, the driver may have to circle the area, check neighbouring properties or ask for directions, causing delays, wasting fuel and reducing the efficiency of the delivery process.
There is also a higher risk of packages being left in an unsecured location when a driver cannot find an address. This can make them vulnerable to theft or damage, resulting in additional costs and inconvenience for both the customer and the delivery company.
Lastly, delayed or missed deliveries due to hard-to-find properties can result in customer dissatisfaction. Customers may be frustrated with the delivery company and leave negative reviews or cancel future orders. This can damage the delivery company’s reputation and result in lost business.
Delm8 Route Planner’s specialist address finder feature helps delivery drivers pinpoint the exact location of even the most hard-to-find properties.
Making last-mile delivery more manageable and reducing the risk of delivery drivers getting lost or being unable to locate the property will save time and reduce operational costs.
How Delm8 Route Planner Can Make Last-Mile Delivery Less Challenging & Costly
Last-mile delivery is a critical component of the supply chain, but it can be challenging and costly for businesses to manage. Issues like inefficient route planning failed deliveries, multiple stops, and hard-to-find addresses can all contribute to increased costs and decreased customer satisfaction.
Thankfully, Delm8 Route Planner offers a comprehensive solution to these challenges, allowing businesses to manage their delivery operations effectively. The specialist address finder feature ensures that even the most hard-to-locate properties can be quickly identified, reducing the risk of delays and missed deliveries. Our advanced route optimisation feature uses actual addresses rather than postcodes, allowing drivers to complete their routes quicker.
By streamlining the last-mile delivery process with Delm8 Route Planner, businesses can improve efficiency, reduce costs, and ultimately enhance customer satisfaction. These benefits can translate into increased profits for companies. Overall, Delm8 Route Planner offers a reliable and cost-effective solution for businesses looking to improve their last-mile delivery operations.
