While every link in the supply chain plays a vital role in getting parcels to where they need to be, last mile delivery is the make-or-break moment for retailers and their customers.
Handle it wrong, and business can land in their customer’s bad books. Nail it though, and customers will stay loyal and businesses competitive.
What is last mile delivery?
Last mile delivery is the final leg of a parcel’s journey to the customer; from the distribution centre, hub or store, to the customer’s doorstep.
It’s that crucial moment where you’ll deliver a satisfying customer experience or fall behind schedule and leave the consumer wishing they’d ordered their goods somewhere else.
The benefits of last mile delivery
Speed: Last mile delivery guarantees quicker delivery, allowing businesses to offer urgent or same day orders for their customers.
Better customer experience: It improves customer satisfaction by meeting their expectations for a fast and reliable service, while offering them real-time tracking updates and better communication.
Flexibility: With last mile delivery, businesses can give their customers the flexibility to choose from a range of speedy delivery options.
Increased revenue: Customers want fast delivery, and they’re willing to pay for it. Speed of delivery is now the decisive factor behind over one-quarter of abandoned carts. Offering premium services like same day or next day delivery can increase sales, while outsourcing last mile delivery to third-party logistics providers can cut costs and improve profitability.
Competitive edge: Nailing the last mile delivery process is a great way for business to gain that competitive advantage and attract and retain more customers.
Last mile challenges and solutions
We’re a last mile delivery provider, so of course we’re going to tell you how great it is. But we also recognise that there are some challenges that come with it. We’ve put a few of them together, along with some solutions:
Cost
Sure, last mile delivery isn’t cheap, but it can generate a whole new revenue stream. Plus, if your customers need your products quickly then the value of speedy delivery outweighs the value of a store visit.
“77% of consumers under 30 say same day shipping is valuable.” (Accenture)
New processes
Setting up last mile can seem daunting. But it doesn’t have to be. If you already have click & collect in place, then your staff will already be trained to pick, pack and hand off to a courier.
And if you’re not set up for click & collect, don’t let that discourage you. Some of our clients have found success by training staff in pick & pack, while others have hired a dedicated crew to handle it.
Real time tracking
Customers want to know what’s going on with their packages from the moment they click ‘buy’.
It’s easy to track an entire shipment of products from the distributor but much more difficult to provide real-time package-level tracing. That said, if you want to deliver a frictionless experience, choose a delivery partner with a live tracking feature and let them handle the comms to your customers.
If you want to talk last mile delivery with one of our same day experts, drop us a message at partnerships@gophr.com.
