Last Mile Delivery & Distribution
Last mile delivery refers to the last step of the delivery process where the product is transported from the transportation hub to the final location, which is usually residences. Last mile delivery is also considered as the most costly and time-consuming part of the entire process. With the sharp increase in purchases on e-commerce platforms, consumers are valuing fast deliveries of their products. Hence, in last mile logistics, the companies have to place more attention on delivering the product to the end consumer in the least amount of time.
5 Key Steps In The Last Mile Delivery Process
With the boom in e-commerce, there is an emphasis on last mile delivery and distribution. Companies are testing and trying innovative methods to keep up with the customer demand of fast delivery with order tracking throughout the delivery process.
The trend of rapid order delivery is set to continue. While e-commerce giant Amazon has been able to cut down last mile delivery time to 2 hours, most companies are trying to reach a 2-day delivery timeline. (Onfleet)
Tracking deliveries using technologies like GPS and a proof of delivery can help reduce disputes between the delivery personnel and the end customer. This improved traceability can make the last mile delivery experience more comfortable for the carrier and customer.
Here are the 5 key stages of the last mile delivery and distribution process:
- Order is recorded in a digital centralised system which allows customers to track their order through the order number.
- Receive the order in the transportation hub from where it will be shipped directly to the end customer.
- Delivery personnel are assigned the order in the most cost-effective and time-saving manner based on their routes and the delivery address.
- Scanned orders sent out for delivery. Scanning the orders ensures that the delivery status is updated in the tracking information available to the customer.
- Obtaining proof of delivery after the order reaches the end customer. This could be in the form of a photo of the order at the customer’s doorstep or a signed document.
Trends that impact Last Mile Deliveries & Distributions
⇒ Speedy Fulfilment
With the rise of same-day or on-demand deliveries, consumers’ expectations of getting their orders fulfilled on time is heightened. Consumers often experience inefficiencies in the delivery of their products, especially when they notice that their package status is ‘out for delivery’ but it has not reach them after a long while. This could be caused by the huge distance between delivery points or even traffic congestions. Therefore, today, effective planning has to be done by logistics providers to get orders organised and ready to go within a short time period.
⇒ Increased visibility of packages
Technology advancement has allowed logistic providers to move in the direction of upgrading the traceability of packages with evidence of delivery and tracking data. With GPS tracking, consumers are now able to locate their package at any stage of the delivery. While this data is imperative in tracing whether a package is late or lost, a number of logistics providers still do not provide this service due to their lack of technology bandwidth. Hence, logistics providers who are capable of providing traceability during last mile delivery process will add value to the consumers.
⇒ Smart Technology
While consumers want to know where their packages are located at, they too want to track the condition of items that are easily affected by temperature changes. Especially for packages that include frozen foods, smart sensors are installed to ensure that temperature are kept optimal to preserve the integrity of the product. In addition to these smart technology, logistics providers are also leveraging on weather information to plan if extra packing materials like dry ice are required in maintaining the quality of packages.
Enquire about how SDR’s integrated logistics solutions can provide a smooth and cost-efficient Last Mile Delivery Process for your packages.
Why SDR Logistics?
- SDR provides manufacturers and consumers supply chain operating, transaction cost reductions and increases logistics service quality
- SDR integrated logistics solutions supply chain management helps companies maximize efficiencies and cost savings
- SDR takes care of customer’s businesses and continue implements systems to help customers in their business needs in adoption to the trend and changes of environment
- We input full commitment in servicing our customers and ensure quality partnership in long term basis
- We monitor and provide useful information in market intelligence to our customers