Last mile delivery is more than just the final step in the logistics chain. It culminates a customer’s shopping experience and sets the tone for future interactions. With Canada’s last mile delivery market projected to grow by 7% annually from 2023 to 2028, businesses must prioritize this crucial aspect.
In this blog, we’ll delve into some actionable strategies and solutions to optimize last mile delivery.
Challenges in Last Mile Delivery
- High Operational Costs: Last mile delivery can account for up to 30% of the logistical expenditure, with unpredictable transport routes and additional fees adding to the costs.
- Meeting Customer Expectations: 74% of customers are more likely to repurchase if they receive same-day delivery.
- Handling Bulky Items: Larger products, especially furniture, present unique challenges in packaging, transit, and installation.
- Supply Chain Transparency: Real-time insights into order statuses and fleet availability are essential for efficient delivery.
Top Strategies and Solutions To Improve Last Mile Delivery
The final step of delivering goods to customers, known as the last mile delivery, often proves to be the most complex. Here are some methods to overcome challenges faced by businesses in last mile delivery:
1. Partnering With A 3PL: Partnering with a 3PL like MacMillan is beneficial, as this can significantly reduce shipping costs for your business, especially when there’s a geographical gap between your company’s location and the majority of your customer base.
This not only streamlines the delivery process but also minimizes transit times and costs, making it an ideal solution for businesses looking to enhance their last mile delivery. 3PLs use advanced technology to optimize delivery routes.
2. Offer Flexible Delivery Options: Consumers demand choice. By providing a range of delivery options, such as same-day, next-day, or even hour-specific delivery, businesses can cater to these diverse preferences, enhancing the customer experience in the last mile delivery process.
3. Expedited Shipping Capabilities: Customers expect quick delivery times. 3PLs like MacMillan can help businesses meet these expectations by offering expedited shipping options. They have the resources and technology to process orders faster and offer various shipping options, including discounts and faster delivery services. This not only satisfies customers but also helps the business grow by meeting market demands efficiently.
4. Efficient Reverse Logistics: Handling returns is a vital part of e-commerce, and 3PLs like MacMillan streamline the reverse logistics process, making it more efficient and cost-effective. They manage the complexities of returns, including transportation and restocking, and provide valuable insights into customer feedback and product performance. This service is particularly important as it helps businesses understand their customers better and reduces the time and expense involved in managing product returns.
5. Maintain Transparent Communication: One of the primary concerns customers have during the last mile delivery phase is their package’s whereabouts. Businesses can ease these concerns by offering real-time shipping status updates across various communication channels, ensuring customers are always in the loop.
6. Streamline Returns Management: An efficient return process is integral to a positive last mile delivery experience. Offering pre-printed return labels and multiple international return methods can simplify this process, reducing customer friction and ensuring continued loyalty.
7. Implement Feedback-Driven Delivery: The best insights often come from the customers themselves. By establishing a robust feedback collection system, businesses can gain valuable insights into their last mile delivery performance, allowing them to address issues and continually refine their processes.
8. Adopt Sustainable Packing Methods: As environmental concerns grow, businesses must adapt. Using biodegradable, recyclable, or even reusable packaging reduces environmental impact and connects with eco-conscious customers, enhancing brand reputation.
9. Regularly Analyze Delivery Efficiency: Data-driven decision-making is key. Regular analysis of delivery data can highlight inefficiencies, allowing businesses to implement targeted solutions to ensure their last mile delivery operations remain optimized and effective.
Elevate your Last Mile Delivery with MacMillan Supply Chain Group
Last mile delivery is more than just an operational task; it’s a strategic move that can set businesses apart in a competitive e-commerce market. By implementing the strategies outlined above, businesses can ensure timely, efficient, and customer-friendly deliveries, solidifying their reputation and fostering customer loyalty.
At MacMillan Supply Chain Group, we understand the challenges and intricacies of last mile delivery. Whether it’s custom shipping solutions or eCommerce order fulfillment, we shape our services to fit the changing demands of businesses. Team up with MacMillan SCG to ensure a smooth, efficient, and customer-focused experience.
Contact us today!
