What are the Challenges, Differences and Advantages of Last Mile Delivery?

Last mile delivery is the last stage in the supply chain where goods are sent from the distribution center or logistics center to the final destination, namely the customer or consumer. The term “last mile” refers to the last distance or last segment in the delivery journey of the goods.

This process is often the most important and complex stage in the supply chain. This is because at this stage, the goods must be delivered on time and directly into the hands of consumers. This process involves managing efficient and effective logistics to ensure timely delivery, accurate order fulfillment and high customer satisfaction.

In the era of rapidly growing e-commerce, this process is becoming increasingly important. Consumer demand for fast and flexible delivery is increasing. Logistics and e-commerce companies are developing various solutions to increase the efficiency of this process, including the use of technology such as automation, the use of drones or robotic deliveries, and last mile delivery approaches by bicycle or electric vehicle.

Last mile delivery is also a logistical challenge due to the complexity of congested cities and traffic jams. Increasing awareness of environmental sustainability has also encouraged companies to look for this process solutions that are environmentally friendly, such as using electric vehicles or sharing vehicles. Check out the following TransTRACK article for further explanation!

Last Mile Delivery Challenge

Last mile delivery challenges can be divided into several aspects, including costs and operational requirements, facilities and services. The following is a further explanation of each of these challenges:

Operational Costs and Needs

Following are the Last Mile Delivery challenges for costs and operational needs:

Shipping costs

Last mile delivery is often the most expensive stage in the supply chain. Transportation costs, fuel, driver wages and logistics infrastructure can increase operational costs significantly.

Route Efficiency

Developing an efficient and optimal delivery route is the main challenge in this process. In a dense urban environment, traffic congestion and short distances between delivery destinations can affect operational efficiency.

Resource Limitations

The increasing demand for fast and flexible delivery is putting pressure on human resources, vehicles and logistics infrastructure. Managing limited resources effectively is an important challenge.

Facility

The following is the Last Mile Delivery challenge for facility issues:

Distribution Center Management

Managing a distribution center or logistics center efficiently and effectively is key in this process. Proper storage, packaging and stock management processes are essential to get goods ready for shipment in a short time.

Road infrastructure

The quality and condition of road infrastructure can affect delivery times and operational efficiency. Bad or congested roads can cause delays and increase the risk of property damage.

Service

The following is the Last Mile Delivery challenge for service issues:

Traceability and Transparency

Customers want high visibility of their shipments. Providing real-time tracking and accurate information on shipment status is challenging, especially when multiple logistics partners are involved.

Delivery on Time

Timely delivery is the main requirement of customers. Achieving consistency in delivering on time promised is a challenge, especially in areas with irregular traffic conditions.

Accurate Order Fulfillment

Ensuring that customer orders are processed correctly and the right goods are delivered is another challenge in this process. Accuracy in managing inventory, accurate product selection, and proper packaging are important factors to maintain customer satisfaction.

Addressing these challenges requires collaboration between logistics companies, e-commerce companies, governments and other relevant parties. The use of technology, such as data analytics, route mapping and automation, can also help optimize this process.

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Last Mile Delivery Advantages

The advantages of Last Mile Delivery are as follows:

Shorter and Practical Delivery

Last mile delivery allows delivery of goods directly to customers or consumers in a shorter time. Compared to traditional delivery methods that involve multiple delivery stages, this process eliminates additional steps and speeds up delivery times.

Supported by Application Tracking

Last mile deliveries are often equipped with tracking applications that allow customers to monitor the status of their shipments in real-time. By tracking their packages, customers can know where their items are and the estimated time of arrival, providing a greater sense of trust and control over their shipments.

Flexible

Last mile delivery can be adjusted according to customer needs and preferences. Customers can choose the delivery time that best fits their schedule, including same-day delivery or weekend delivery. This flexibility helps increase customer satisfaction and accommodates individual needs.

Brand Awareness

Last mile delivery can be an opportunity to strengthen brand awareness or brand awareness. When goods are delivered directly to customers, companies can take advantage of this opportunity to increase brand recognition, including the use of brand packaging, additional product promotions, or special offers given to customers.

Through this process, companies can create positive customer experiences, build strong relationships, and increase customer loyalty. In the era of rapidly developing electronic commerce, last mile delivery is an important key to meeting customers’ increasingly high expectations for fast, accurate and convenient delivery.

The difference between the First Mile and the Last Mile

The difference between First Mile and Last Mile lies in the position and function of each in the supply chain. The following is an explanation of the difference between First Mile and Last Mile:

First Miles

The following are the characteristics and differences between the first mile and the last mile:

Position

The first mile is the first stage in the supply chain, where goods are collected from the initial manufacturer or supplier and prepared for delivery to a distribution center or collection point.

Focus

The primary focus at the first mile is collecting, packaging, and preparing goods for their journey through the supply chain. The aim is to integrate these products into the logistics system and ensure the availability and quality of the goods before they enter the further supply chain.

Responsibility

The first mile is often the responsibility of the initial supplier, manufacturer or logistics partner. They are responsible for collecting and shipping goods from the source to the next distribution point in the supply chain.

Last Miles

The following are the characteristics and differences between the last mile and the first mile:

Position

The last mile is the last stage in the supply chain, where goods are sent from the distribution center or logistics center to the final destination, namely the customer or consumer.

Focus

The main focus on the last mile is the timely and accurate delivery of goods to customers. This involves planning delivery routes, inventory management, proper packaging and direct interaction with customers.

Responsibility

Last mile delivery is usually the responsibility of delivery service providers, such as logistics companies, couriers, or e-commerce delivery service providers. They are responsible for delivering goods safely and efficiently to customers, maintaining customer satisfaction and building a positive experience.

In summary, the difference between the first mile and the last mile lies in the position in the supply chain, task focus and responsibility. The first mile focuses on collecting and preparing goods from the initial source, while the last mile focuses on delivering goods to the final customer. Both are important stages in ensuring the smooth and successful supply chain.

In facing challenges and taking advantage of the potential of this process, it is important for companies to have integrated and efficient logistics solutions. TransTRACK as a Logistic Service Integrator can be the right partner to optimize your last mile delivery operations.

By becoming a Logistic Service Integrator from TransTRACK, you can strengthen your last mile delivery operations, improve customer satisfaction, and improve overall efficiency. Don’t miss the opportunity to integrate the best logistics solutions with TransTRACK. Contact us today for more information and turn your last mile delivery into a true competitive advantage.