What is Last Mile Delivery? Let's look at a typical order fulfillment process: The customer places an order: The order is shipped from its place of manufacture through the distribution channels (e.g. master warehouses, sub-warehouses, warehouse agents, distributors, etc.)
The final point in the distribution chain (e.g. retailer, distributor) to the consumer, e.g. Retailer (in brick-and-mortar stores), and the consumer's home (in e-commerce) since “last mile delivery”
is the last leg of your order travel before it reaches its destination?
But why is last-mile delivery so important? We are now in the most competitive age mankind has ever seen. From an economic point of view, companies are in global competition and constantly under enormous pressure.
Consumers have many options and can switch from one provider to another at any time. You must keep customer satisfaction as your most important metric. In today's age of technological pervasiveness, it is almost impossible to build sustainable businesses solely on the functional elements of your offering, and customer loyalty increasingly stems from the Customer Experience (Cx). And since “last mile delivery” is the touch point with your customer and therefore has a major impact on your Cx, you would be missing a trick if you weren't paying attention. By knowing your Cx Pulse, you can not only build a loyal customer base, but you can also create effective business forecasts for peaks and troughs in demand and plan your supply accordingly. Therefore, the 'economic impact', ie the impact on price, cost, and revenue (micro) and growth, profitability, and productivity (macro) that Cx or last-mile delivery has been enormous. Remember that last mile delivery is not just the “last mile” that your order physically travels, but also the logistics, efficiency, cost, customer lifecycle alignment (etc.) that make this “last mile " turn off. Has last-mile delivery gained momentum lately? It allows businesses to predict demand patterns and adjust the supply side accordingly, resulting in greater profitability, countering competitors, managing costs, resources, etc. Last Mile Delivery can be found in all previous Cx articles (except #1).
In the future, the modern customer will only deal with companies that can offer not only a quality offer but also one that suits their lifestyle and exists in their universe of touchpoints (both online and offline). For example, you have exactly the product a consumer wants, but if they just want to buy online and can't deliver it within 3 days, they will go elsewhere. Using last-mile delivery to predict demand patterns Cx helps companies measure buyer behavior; eg. whether customers are returning for future purchases, buying the same product, including other products, or ordering the same or different quantities (etc.), which helps companies predict demand patterns.
Last Mile Delivery Powering Cx in the Age of Giant eCom - eCom is now our way of life. This makes last-mile delivery even more critical for your Cx as it is the “touch point” with your customer – it is the “face” of your business that your consumer sees. And Cx, as we have already seen, is a crucial metric for efficient business planning. For example, if you are in the grocery delivery business and deliver hot food to your customers, your last-mile delivery is essential to a positive customer experience. Only then will you have repeat orders? Every time you deliver groceries late (or cold and stale), you lose a customer. Result? One less unit in your inventory.
Conversely, consistently meeting customer expectations will generate WoM (word of mouth) for your business and will almost certainly result in more orders and more customers. Result? More inventory is required. The example above typifies how last-mile delivery is increasingly helping companies to predict demand patterns. Advanced last mile management tools:
GPS-enabled vehicle and fleet tracking systems Efficient logistics is essential to effectively manage your last-mile delivery. Enables companies to achieve optimal efficiency in managing the logistics side of their last-mile delivery, ensuring customer orders are fulfilled on time, every time. GPS-enabled fleet management systems provide extensive MIS and real-time data, enabling companies to continually improve their last-mile delivery management. Customer experience, in turn, is crucial for companies to predict buyer behavior and, based on this, to predict demand patterns. This helps companies to best manage their businesses and stay competitive, grow operations, and maintain profitability. Therefore, investing time, effort, and resources in managing your last-mile delivery is critical to the success of your business. Ignore it at your own risk! Automate last-mile delivery by solving your last-mile routing challenges with last-mile delivery software.
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