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Last Mile Delivery Software: Everything You Need To Know About

Last Mile Delivery Software: Everything You Need To Know About

Instant gratification is certainly a hallmark of the digital age, but Uberization of services have sparked this concept of the on-demand industry.

Now, the customer doesn’t expect the goods to deliver at the doorstep, but they anticipate faster goods delivery at the minimum cost. Last mile delivery is the cog in the machine that businesses are trying hard to achieve for delivering an exceptional experience to the customers.

What is last mile delivery?

The logistics concept involves the movement of goods from a warehouse to the final destination quickly and at cheaper rates, which adds comfort and offer convenience to the customers.

Ecommerce stores are laser-focused towards last delivery solution because 30% of the online shopper never visit or buy from the store again that offered poor delivery services or provide the shipping options that the customers expect.

The trends that are gearing up the market shift towards last mile delivery:

On-demand delivery: The on-demand same-day delivery services have raised the customer’s expectations to a narrow window of a few hours. The stores offering pharmaceuticals and food delivery services are making efforts to get the package ready in a matter of minutes and ship it in an incredible 1 hour.

Focus on visibility: The astronomical rise of smartphones have enabled GPS tracking (Integral to Delivery Tracking Management Software) that allows the customers to trace the order at every step of the way in the real-time and the process of signature capture at the point of delivery. Although the process is not standardized across all the industry verticals, the customers expect the (improved visibility) information to be available beforehand through last mile delivery software.

City warehouses: The increasing number of warehouse space enable easy access to the products for faster deliveries. Amazon Prime took advantage of building hundreds of distribution centers in the several USA cities that reduced the transit time and make order delivery possible in 2 hours.

Subcontracting deliveries: The trend of owning or leveraging shared vehicles to ship the order is giving a leg up to the last mile delivery where the drivers on payroll would help in local deliveries.

Turning carriers into sellers: Analyzing the customer’s buying frequency, the Ecommerce keep the items that are regularly ordered in stock in the nearby warehouse so that the delivery process can be expedited.

Futuristic delivery options: With probes and sensors embedded in the package itself allow the customers to track the temperature changes in addition to the route taken by the transportation medium. Besides, the drones, robots, and autonomous cars are also tested as delivery options, which can change the game of last mile delivery when going into the mainstream.

It’s clear that different trends and different players are actively contributing to make the last mile delivery perfect and step in with the customer’s demands. However, employing the last mile delivery solution cost is substantial that eat up a large chunk of the profits. So, the businesses have to either bear the additional cost or find out the ways to manage the cost.

The leading players spurring the last mile delivery innovation:

Amazon nails the market with Amazon Prime, which is growing its services by 30% every year. The Ecommerce giant opened hundreds of distribution centers, own fleet of the delivery truck and air cargos fleet, opted for deliveries by independent deliverers, and pretty more to catch up with the last mile trend.

Tapping into self-driving cars, Walmart is offering grocery delivery services with a minimum purchase order of $30 and $9.95 for certain locations. The customers are also allowed to pick up the items from the Walmart location by selecting a time slot and the employees will do the shopping and load the car with required items. Moreover, to slash the delivery cost and time, the store filed a patent for the blockchain system that will allow drones to exchange information.

There are many more companies innovating to sustainably meet last mile delivery needs across different phases of the logistics and enjoy a great feat with enormous advantages.

The benefits it brought on the top of the table:

  • The ‘buy online and pick up in store’ fulfill the ‘instant gratification’ need of the customers and pass the cost associated with the last mile delivery to the customers.
  • The need for instant gratification actually came from Millennials who crave for immediacy and ready to pay extra dollars for the same day delivery, which means standing up to the Millennials expectations helps in increasing the average ticket size.
  • The ‘click and collect’ initiative also enables impulse shopping as the shopper came to store to collect the item may end up buying more things.
  • Meeting the customer’s expectations with ornamental features results in outstanding experience and never let the customers look to the competitors.

Well, opting for the last mile delivery demand architectural restructuring, on-premise hardware implementations, remapping of the user experience, and pose more challenges.

The significant challenges that Ecommerce stores going last mile delivery way will face:

  • Last mile delivery accounts to 28% of the total delivery cost, which if not passed to the customers, then it directly impact the bottom line. The poor infrastructure such as unoptimized routes, inefficient technology stack, and long journey also get translated into the high cost.
  • The customer nuances such as a wrong address, whimsical order cancellation, customer’s absence at the time of delivery, and return order increases the last mile delivery cost, which certainly not borne by the customers and negatively impacts the ROI.
  • The changing rules and regulations of different nation’s government are another headache and shipment process has to adapt the rules to perform impeccably.
  • Every another technology innovation take the driver seat if it succeeded to thrive the customers. It means the huge investment that the company made to realize last mile delivery benefits with a technology adoption will soon become obsolete when the new last mile delivery trend begin enticing the customers. Switching to different technologies and making changes system-wide is not an easy deal.

Author – Bio

Noman Shaikh is a Digital Marketing Head at Fixlastmile & eclinicaltrials which is known for developing top-notch last mile delivery Software. He believes in sharing his strong knowledge base with leaned concentration on entrepreneurship and business.

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