When it comes to last-mile delivery, it’s anticipated that the market for this service will be worth an estimated $30.2 billion in 2018, according to research. You cannot reduce the cost of the last mile unless the last mile activities are correctly managed, and the last mile delivery is optimized.
Last-mile delivery costs, which account for approximately half of total shipping and supply chain expenses, may risk a company’s profitability. However, optimizing resources and using technology to intervene in warehousing may save time and money by streamlining the last mile of the delivery process.
Your fleet must deliver hundreds of packages to their ultimate destinations every day. The cost of last-mile fulfillment is complex and depends on various variables. So, here are the 5 Last-Mile Delivery Optimization Methods That Really Work.
Keeping Track of the Fleet
Companies must make sure that the movements of the fleets accessible for the delivery of products are transparent and visible. Automation and smart technology may help a firm prevent last-minute delays by focusing on ground employees and their delivery fleet.
The ability to track a fleet’s progress, position, and arrival time is one of the many benefits of having real-time fleet visibility. It’s no secret that successful businesses are those that have satisfied consumers.
Putting in place Real-Time Monitoring
Customers can see exactly where their packages are at all times thanks to real-time tracking, which also eliminates any internal delivery concerns the firm may have. It would be helpful if the delivery fleet could be guided effectively by important information, such as traffic or weather conditions, so that you could avoid delays.
Companies may automatically give clients an expected arrival time (ETA) using real-time tracking on the web or a mobile application. As a result, it helps to keep track of delivery costs and provides complete transparency at all times. Companies may even monitor the effectiveness and performance of drivers. You may reduce last-mile expenditures by using real-time tracking to reduce the number of kilometers driven and increase driver productivity.
Utilize Route Optimization
Route optimization is a technique of finding the most cost-effective route while still allowing for the greatest number of delivery sites to be reached. When determining the most cost-effective and efficient path, businesses must consider fuel expenses, driver productivity, dangers, one-way windows, delivery urgency, and other considerations. Deliveries may be sent out in seconds if organizations have established very effective delivery routes.
You may improve fuel efficiency and delivery time by tracking the routes that fleet drivers travel, recognizing traffic patterns, tracking idle time, and tracking actual driving time. Rerouting the delivery fleet based on real-time route notifications, such as traffic jams, helps prevent delays.
With this kind of data, it’s possible to create dynamic route optimization. Incorporating new orders into the delivery plan is made easier using this tool. In the event of a vehicle breakdown, route planning software may be used to automatically transfer deliveries to other drivers. Maps will be able to consider all variables, allowing companies to choose the best route. They’ll be able to save time, money, and effort this way.
Keeping Track of Delivered Goods
Proof of shipment and delivery, state of supplied items, non-availability of customers, and payment information must all be kept on file by businesses. You may store these proofs electronically in notes, photos, or videos, and they can be accessed right away by the software. When it comes to responding to consumer inquiries, having access to real-time data is a need. Electronic proofs reduce the amount of paper that you must store in the office.
Companies will be able to deliver products on time and keep consumers delighted if they optimize routes, reduce fuel consumption, and monitor their fleet. Brand loyalty and profitability will both increase as a result of this.
Reduce the final-mile delivery cost within your control
Taking practical actions to lessen the effect of last-mile delivery expenses is one way to lower such costs. A good option is an investment in cutting-edge technology that helps you optimize routes, connect with clients, follow drivers’ actions, and utilize real-time data to make educated choices.
Research shows that 55 percent of buyers won’t even think twice about switching brands if they can get speedier delivery. Consequently, 46.8% of retailers expect to increase their delivery logistics investment to attract more and more consumers.
A fleet management software may help you get better on-time deliveries and increase your last mile operations without sacrificing client satisfaction.