How Can Last Mile Delivery Optimization Help Your Logistics?

 

Global markets, escalating rivalry, and shifting consumer preferences have put enormous strain on supply chain and logistics companies, particularly on their last-mile delivery management operations.

As a result, using best practices to enhance their last-mile deliveries will significantly help them grow their operations, satisfy client demand, and turn a profit.

1. How can businesses improve last-mile delivery?

Although there are many strategies to improve last-mile delivery operations, businesses select the ones that work best for them. All of these businesses that offer delivery and logistics services may, however, adopt a few fundamental best practices.

These standards and benchmarks fundamentally serve as a solid framework to organize, construct, evaluate, adjust, and manage business performance throughout last-mile delivery operations.

Here are the top 6 ways to accomplish this:

1. Establish a thorough plan: The first stage is to draught a thorough plan. one that considers the multiple parties involved in the supply chain that must collaborate to effectively deliver packages to clients within the smallest delivery windows, at reasonable prices.

It is essential to implement such a master plan since numerous stakeholders, such as raw material supply, production employees, warehouse, inventory, fleet cars, drivers, delivery, and logistics, all need to be aligned to the shared goals. The conflict between the two stakeholders would lead to bottlenecks, inefficiencies, and higher costs.

The foundation of such operational plans must be adaptable at all times, which means they must continually monitor the environment for changes.

2. Adopt contemporary technologies: Automation is the single largest advancement in contemporary last-mile delivery systems. It has not only led to the “coming online” of all facets of contemporary complicated supply chains, but it has also greatly increased their efficiency.

To assist Logistics Managers in running an effective operation, the program provides highly sophisticated capabilities, such as real-time information, 100% visibility, and live tracking, that smoothly integrate across all of its functional domains.

The last leg of the supply chain and logistics network that items traverse before arriving at their final destination, i.e., the customer’s doorstep, is known as last-mile delivery.

3. Strong data analytics: Extending from the previous point, modern automated systems have a wide range of data analytics capabilities.

Additionally, there are vast volumes of data that are being created and recorded as a result of the automation of the whole supply chain and logistics network. To get valuable knowledge and utilize it to inform more intelligent decisions, logistics managers may slice and dice this data in many ways.

4. Create standard operating procedures: As was previously said, it is essential to plan, evaluate, implement, measure, and oversee your company’s operational processes. It is difficult to optimize without doing so.

Additionally, just because a method has been designed and put in place doesn’t imply it will always be followed. Contrarily, the best processes that deliver high levels of performance are those that are continually changing over time in response to innovations, rivals, best practices, technology, and shifting customer preferences. Only thus can logistics companies set high criteria for their operations, improving performance while still generating a profit.

5. Monitor activities in real-time: Modern last-mile solutions are fantastic because they can keep an eye on things in real time. From their centralized control rooms, logistics managers can monitor every action from beginning to end. This aids in following defined protocols, detecting deviations (including malpractices), assisting delivery teams in addressing issues and dealing with crises, and maintaining control.

Monitoring drivers: Logistics and supply chain organizations frequently neglect to provide their drivers with the proper level of attention. According to common estimates, drivers lose 40–60% of their assigned time while on the road. This constitutes a considerable departure, of course.

Real-time tracking of drivers makes sure they adhere to the timetable. It also makes sure that all other supporting operations, such as those involving vehicles, loading and unloading times, etc., are monitored to help drivers in achieving their delivery objectives.

6. Maintain a customer-centric mindset: As usual, keeping consumers satisfied is every company’s first priority. No company could possibly aspire to succeed without obtaining client happiness.

It’s noteworthy to note, nevertheless, that inefficient delivery processes are frequently caused by the clients themselves. Constantly altering delivery windows, refusing payments, and rejecting packages at random (among other things) can frequently work against their own goals. Therefore, logistics companies would be wise to keep an eye on their clients and collaborate with them to enhance delivery performance.

II. Last-mile delivery optimization tricks

Since delivery to the client’s door marks the conclusion of the supply chain, logistics and distribution businesses must do their utmost to satisfy consumer needs. Let’s look at some extra tools in addition to the general recommended practices already mentioned:

1. Inventory tracking: Before the loaded vehicles left for delivery, legacy supply-chain technologies were unable to trace inventory movement. This resulted in several issues, such as fraud, theft, and spoiling. But thanks to current technology, goods may now be marked and scanned, allowing for tracking up until the point of successful consumer delivery.

Additionally, the fleet vehicles’ interior temperatures as well as the driver’s actions (such as speeding, making sharp turns, etc.)

2. Automated route-optimization: Adding to the advantages of automation already discussed, route-optimization is likely its single biggest advantage when carried out by these systems. Logistics Managers determine the most effective routes by weighing a variety of factors, including the destination locality, the type of cargo, the fleet vehicles available, the road conditions, the weather patterns, independent or employed drivers, weekday or weekend delivery, and the number of stops on a particular route (etc.). This significantly improves last-mile delivery.

3. ePOD (electronic proof-of-delivery): Conventional ways of getting customers’, warehouse employees’, logistics team members, and other workers’ signatures on deliveries created several issues, such as misplaced papers, dirty receipts, fraud, and strain on available warehouse space. Utilizing an ePOD avoids all of these problems and keeps a digital record.

4. Managing 3rd party drivers: As was already noted, another crucial element of attaining the best last-mile performance is keeping track of driver performance.

Naturally, several categories of drivers, including third-party drivers, are employed by logistics organizations depending on their needs. Their needs have grown dramatically in recent years as a result of the expanding e-commerce industry. A successful last-mile delivery system must thus combine all drivers’ varied roles and duties, timetables, performance standards, and compensation calculations.

As can be seen, if logistics and supply chain organizations want to grow their business, they must automate their last-mile operations by adopting technologies like last-mile delivery software.

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