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The final stretch of a supply chain's operations is known as last-mile delivery. The journey of a product <br>from a warehouse to the doorstep of the final customer is also the most important step in the delivery <br>process, and it should be well-managed for quick distribution.
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Last-Mile Delivery – The Most Important Part of the Journey The final stretch of a supply chain's operations is known as last-mile delivery. The journey of a product from a warehouse to the doorstep of the final customer is also the most important step in the delivery process, and it should be well-managed for quick distribution. The last-mile delivery is the most expensive portion of the route from the transportation hub to the final destination, so resource optimization should be a top priority. Businesses are preparing this essential stage for a rapid and effective dispatch as customer demand grows. Whether it's a private residence or a retail business, the supply chain's end destination should be reached with breakneck speed for a flourishing business and to keep churning out more and more satisfied customers. In layman's terms, last-mile delivery involves six major phases: 1.The orders are recorded digitally in our system. 2.Then the order is delivered to the transportation hub. 3.The order is then handed over to our delivery staff along with all the necessary information like recommended route, handling instructions, and the locations of the recipients. 4.Followed by scanning the orders for record-keeping purposes and placing them onto vehicles. 5.After then, the item is delivered to the specified recipient. 6.The last step involves recording and updating the delivery status. Providing customers what they want, when they want it, and delivered to where they want it are important requirements to keep a business firm afloat while maintaining a high level of client happiness in today's multichannel environment. And logistics if not managed properly place an unbearable burden on the company's supply networks to complete the task. At AWL we study thoroughly how to improve the processes by perfecting the Last-Mile Delivery and its current inefficiencies in supply chains. We assist leading businesses by leveraging new and trusted technology to improve delivery techniques and differentiate business operations to provide enhanced, predictive, and cost-effective deliveries to their end-users today and in the future. We seek the help of automation and software in our supply chain operations and reduce the security risks and burdens associated with Last-Mile delivery. The fast-increasing commercial ecosystem has become an expensive nuisance for many economies during Pandemic and after the pandemic. Last-mile delivery enters the value proposition because it entails delivering a variety of items and services to a large number of recipients (customers), all of whom have high expectations for service standards and exact time frames. According to a renowned business magazine, two issues are making the Last-Mile delivery unachievable. The first is price, as clients demand not just quick but also free delivery. And the next point is delivery efficiency, which arises when several stops are made yet delivery volumes are small. Over half of the shipping costs is because of free delivery, real-time tracking, route optimization, and CRM development. In this world of digitization and automation, the market is not just very competitive but posing numerous problems in logistics. We at AWL US have taken measures in Last-Mile Delivery through complete automation and delivery optimization. According to research, 45% of consumers want delivery in two or fewer hours. And around 80% of eCommerce buyers expect real-time delivery tracking. Customers' high expectations for their delivery experiences have transformed the way organizations approach delivery and fulfillment procedures. Customers' demands are prompting businesses of all kinds to rethink how they handle the last mile, including logistics services, retailers, supermarkets, restaurants, and others. Why Last-mile Logistics is Challenging? To increase brand loyalty and consumer happiness, last-mile delivery services should prioritize accuracy, timely delivery, and speed. Last-mile delivery is so crucial that over half of the consumers don’t buy from a company again if they are dissatisfied with the shipping service, according to a study. The last mile is one of the most costly and time-consuming parts of the entire supply chain
management. Hence, it faces a lot of challenges. Let’s discuss the challenges involved in Last-mile Delivery and how to overcome these challenges. 1.Costly Delivery Numerous logistics and supply chain companies offer costly Last-mile delivery for both individual customers and businesses. The main reason behind the high cost is setting up an infrastructure that facilitates on-time deliveries. On top of that, shipping and logistics companies bear the cost of missed deliveries, complex routes, driver pay, extra stops, and maintenance of the fleet. The expenses become double if the delivery is rescheduled after failing once. Also, the rise in delivery costs is directly proportional to the scenario when shopping cart abandonment rates rise. A recent survey suggests that over half of the customer refuses to purchase an item if there are any last-mile delivery charges involved in purchasing it. Strategic planning in making an efficient and better route is the key and results reduction of the delivery cost. 2.Obsolete Technology Technology that is no longer current is another challenge in the supply chain. According to SOTI, approximately half of the world's supply chain management companies are still using outdated technology that is no longer helpful in their operations. These antiquated technologies for last-mile delivery are severely hurting their operational cost, hence, consumers are either paying heavily for the delivery or not at all buying the goods. And, no matter what era is it, customers will never want to deal with delays and excessive delivery fees. At AWL, we have installed a GPS tracking system in our fleet that foresees any potential roadblocks, monitors the entire last-mile journey and designs proactive tactics for faster and inexpensive delivery. 3.Lack of Foresight For many logistics companies, visibility is a problem. The most crucial proviso for ensuring client adhesion to its logistics partner is the visibility of the deliverer in its delivery operations. Buyers want to know through real-time tracking of the consignment exactly where their package is and how soon will it arrive. Technologically updated supply chain management companies in india like AWL provide real-time tracking so that customers may see the status of their orders and follow the complete journey of their consignment. Especially, they keep an eye on the last-mile delivery journey. The last- mine delivery process at AWL has engulfed highly sophisticated and technologically advanced delivery management software that not just provides real-time status but improved transparency into last- mile delivery as well. This enables our clients to track their deliveries to their front door. Regularly updated data on not just the related inventory and actual site of delivery, but also the number of open orders from each customer; related internal procedures and available internal or external fleets to make deliveries is the most critical component required by any delivery operation. Logistics businesses will get critical insights into understanding and optimizing delivery operations if they have data on the delivery flow as well as data on the consumer. As a result of these enhancements, logistics and supply chain companies will be able to provide the speed, convenience, and flexibility that customers need. 4.Unorganized Planning of Route Route planning is unorganized and inadequate for most supply chain companies around the world. Especially, if they are a new player in the market. Yes, route planning is indeed a complex process and difficult for novices because there are so many variables to consider and attached to the logistical process. Expensive spending, delays in deliveries, and greater customer discontent arise because of poor route planning. With appropriate route optimization, we at AWL overcome this difficulty very easily. It not only lowers the expenses of late delivery but also improves the projected arrival time. And in both ways, our customers are content and come back to us.
5.Inefficient Management Low levels of efficiency in a supply chain management organization are nothing less than a sin. Last- mile delivery has become more efficient and logistics companies are focusing on it as a result of the battle to assure client satisfaction. Fulfillment services is another reason why increasing efficiency is necessary. When the procedures of logistics companies around the world are inefficient, they perceive an increase in late deliveries and angry buyers. And if they are dealing with huge order volumes then the situation may get worsen. At AWL, we have deployed last-mile delivery software to solve this challenge. The software streamlines the procedure from the warehouse to the customer's doorstep. It allows us to reroute our delivery fleet even if customers’ plans alter at the last minute. 6.Miscellaneous Challenges Unpredictable elements are another challenge in last-mile deliveries. When a packaged commodity is in transit, there can be numerous unpredictable circumstances that might cause last-mile delivery to be disrupted. Situations like terrible weather, congested traffic, or maybe vehicle problems sometimes due to lack of proper maintenance are out-of-control. However, we can deal with these issues as well by developing contingency plans while maintaining constant contact between our workforce and customers. At AWL, we always have a plan of action on hand so that, in the event of an emergency, we can immediately deploy the appropriate remedy and avoid making the situation worsen and losing the customer. Logistics firms may respond to changing client demands and differentiate their goods by using efficient last-mile delivery operations. Businesses that want to succeed with an online store must be proactive in addressing such last-mile delivery issues. This necessitates complete transparency, the use of appropriate technology, and effective communication between your delivery crew and clients. Conclusion Clients around the world these days value their ideal delivery experience over their contentment with the goods they've received. With this in mind, it's no surprise that how organizations handle their last- mile logistics is now dictating market share. Those looking to stand out must provide excellent delivery experiences based on a tried and true approach to managing their last-mile operations. And for this, big players in logistics and supply chain management can do miracles in terms of providing sure satisfaction, on-time deliveries, and cost-saving for their clientele.