Get to Know the Process and the Advantages of First Mile Delivery!

First Mile plays an important role in the logistics industry, laying the foundation for successful supply chain management. This refers to the initial stage of the shipping process, which includes the movement of goods from the point of origin to a distribution center or other collection point. Efficient deployment is essential to ensure timely and efficient delivery of products to customers.

In this article, we will explore in depth what first mile delivery is all about, including its process, the challenges it faces, and the key factors that contribute to its success. We will review the stages involved, including procurement, warehouse storage, and transportation. In addition, we will discuss the benefits of optimizing the delivery process, such as increased customer satisfaction, increased operational efficiency, and more targeted inventory management. Check out the following TransTRACK articles!

What is the first mile in logistics?

In the context of logistics, “first mile” refers to the initial stage of the supply chain or the delivery of goods. This refers to the movement of goods from points of origin or factories to distribution centers, warehouses or other collection locations. At this stage, goods are collected from producers or suppliers and then processed to be sent to the next destination in the supply chain.

The first mile often involves activities such as goods collection, loading, packaging, and transportation from production sites or suppliers to distribution points. This can involve using different types of transportation such as trucks, ships, trains, or planes depending on the distance and type of goods being sent.

This stage is important in logistics because the effectiveness and efficiency in moving goods from the source to the initial distribution point can impact the entire supply chain. Efficient processes within the first mile can reduce costs, optimize delivery times, reduce product damage, and increase customer satisfaction.

How the process in first mile delivery?

The following is the process for first mile delivery activities. Check out the process:

Procurement

The procurement process in first mile delivery involves receiving and collecting goods from manufacturers or suppliers. This involves purchasing or fulfilling orders for goods necessary to fulfill customer requests. This procurement process may involve negotiating prices, signing contracts, and processing orders.

At the procurement stage, it is important to ensure the availability and quality of the goods ordered. This involves verifying the quantity, quality and condition of the goods received. If there is a problem with the order, such as a missing or damaged item, it will need to be resolved with the supplier before moving on to the next stage.

Warehouse Storage

After the goods are received from the supplier, the next stage is storage in the warehouse or distribution center. The purpose of this storage is to keep the goods in good condition and prepare them for the next shipment.

The storage process involves receiving goods at the warehouse, re-checking quality, classifying, and labeling. Items received are placed in proper storage locations for easy retrieval later. The warehouse is also responsible for ensuring the integrity of goods, monitoring inventory and managing stock rotation.

In addition, warehouse management systems are used to track inventory, manage inventory and ensure proper availability of goods when needed. The warehouse is also responsible for keeping goods safe and implementing appropriate quality control measures.

Transportation

After the goods are ready to be sent, the next step in first mile delivery is transportation. This involves moving goods from the initial warehouse or distribution center to the next destination in the supply chain.

Transportation options may vary depending on the distance, time, volume of goods, and the type of goods sent. This can involve the use of trucks, ships, trains, airplanes, or a combination of several modes of transportation.

During the transportation stage, it is important to ensure the safety and integrity of the goods. Proper packaging, stable stacks, and protection from physical damage are important factors in keeping goods in good condition during transit. In addition, good logistics coordination, including route monitoring, estimated delivery time, and real-time monitoring of goods condition is also required to optimize the first mile delivery process.

Overall, the first mile delivery process involves procurement of goods, storage in warehouses, and transportation from the point of origin to the initial distribution point. These three stages are interrelated and must be carried out with efficiency and effectiveness to ensure timely, safe and quality delivery of goods to the next destination in the supply chain.

The advantage of first mile delivery

First mile delivery has several important advantages in the logistics context. Here are some of the main advantages of first mile delivery:

Fast Request Fulfillment

First mile delivery enables fast processing and delivery of goods from manufacturers or suppliers to the initial distribution point. By optimizing procurement, warehouse storage, and transportation processes, goods can be immediately available to meet customer demands quickly. This allows for shorter response times and increases customer satisfaction.

Goods Quality and Integrity Control

In the first mile stage, goods received from manufacturers or suppliers can be inspected and verified for quality. This allows early identification of defective or damaged goods, so that remedial steps can be taken before the goods are sent to customers. By maintaining the quality and integrity of goods, first mile delivery helps reduce the risk of sending goods that do not meet standards.

Stock and Inventory Optimization

Through the process of procuring and storing in warehouses, first mile delivery helps in managing stock and inventory efficiently. By monitoring incoming and outgoing inventory, companies can optimize stock levels, reduce the risk of shortages or excess inventories, and improve operational efficiency. This also helps avoid excessive storage costs.

Operational Efficiency Improvement

First mile delivery enables companies to better plan and manage logistics processes. By optimizing procurement, storage, and transportation, companies can reduce waiting times, avoid delays, and speed up the flow of goods in the supply chain. This leads to increased overall operational efficiency and reduced logistics costs.

Traceability and Transparency

In first mile delivery, companies can use technology and management systems that enable real-time tracking of goods. This provides greater visibility and transparency of the movement of goods, including their location and status. This information can be shared with customers and other stakeholders, increasing trust and providing a better understanding of the delivery process.

Overall, first mile delivery provides advantages in fast demand fulfillment, quality control and goods integrity, inventory optimization, increased operational efficiency, and tracking transparency. By optimizing early stages in the supply chain, companies can create a solid foundation for efficient and successful delivery of goods to customers.

In building an efficient and successful supply chain, it is important to have integrated and reliable logistics solutions. One solution that can help optimize the first mile delivery process is the Logistic Service Integrator provided by TransTRACK.

By using the Logistic Service Integrator, companies can easily procure goods from manufacturers or suppliers with an automated and monitored process. TransTRACK also provides a sophisticated warehouse management system, enabling companies to control inventory, track stock and optimize warehouse space.

By adopting this solution, your company can increase efficiency, reduce logistics costs, and increase customer satisfaction in the first mile delivery process. Contact TransTRACK immediately for more information and start building a more efficient and successful supply chain today!

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