What is Final Mile Delivery in Logistics? Challenges & Benefits

You are missing big time if you are not leveraging and optimizing final mile delivery. Learn how to integrate final-mile delivery logistics into your business!

Gone are the days when final mile delivery was a novelty service. In a world where by 2040, all purchases will be made online, final-mile logistics holds a centerpiece in supply chains. And advancements in last-mile delivery software will play a central role in it.

With the software, the final mile delivery service will become accessible to all. Be it D2C, B2C or B2B business.

Everybody wants their orders and products at their doorstep – without exception. In this blog, we will tell you all about final mile logistics and delivery. We will showcase what you might be missing out on!

What Is Final Mile Delivery?

Final mile logistics, better known as last mile delivery, is the final leg of a product’s journey in the supply chain. It is the process of transporting the product from the final seller or hub to the final consumer.

The whole point of final mile delivery is that customers should get the product in the quickest, most affordable, and smoothest way possible. This itself is a huge challenge because final mile logistics is in fact the most expensive stage of the supply chain.

Who Uses Final Mile Delivery?

Final mile delivery is the process of sending the product to the final consumer.

With the platform, buinsesses can execute accurate hyperlocal deliveries. Businesses in the food and grocery sector, logistics firms, local restaurants, and parcel companies are prime users.

As long as your products need to reach the end consumer and need interaction with them, you need final mile logistics!

How Does Final Mile Logistics Work for Businesses?

Every business that sells products needs to add final mile delivery logistics into their business. They can do so in following ways:

• Building an in-house delivery management system
• Employing a 3PL service to take care of the entire supply chain

The former is a good choice for businesses with enough infrastructure, funds, time, and other resources to devote to in-house supply chain management. (For example, Amazon)

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However, most modern businesses prefer the latter. This includes e-commerce platforms and product manufacturers. For example, FirstCry uses Xpressbees for their last-mile efforts. They do this for two specific reasons.

• In-house supply chain management takes too much effort
• Outsourcing allows them to focus better on product management and branding

The courier system that you choose to use depends on your business format and resources. However, it doesn’t matter whether you prefer an in-house system or outsourcing the entire process. What matters is efficiency. Ensure you are using reliable last-mile delivery management software. This will help you achieve fool-proof management.

How Long Does Final Mile Logistics Take?

Every business takes different durations to fulfill final mile deliveries. This variation comes from factors such as:

• Urgency of the package
• ETA promises made to the end consumer
• Infrastructural integrity and strength
• The courier partner
• Location of the sender/warehouse and the consumer

The general final mile logistics cycle can be anything between 0-10 days.

To know how long final-mile takes and why it takes that time, you need to understand the process. Learning about final-mile steps will give you a cl

earer picture.Let’s have a look!

• Step 1: Customers’ orders are recorded by the manufacturer/seller manually or into a centralised customer management system.

• Step 2: The goods are transported from the manufacturer to the nearest dispatch hub. This is part of middle-mile logistics. This step, of course, is not applicable to local sellers and retailers who might be the nearest hub to begin with.

• Step 3: Either manually or through software, delivery agents are assigned to all last mile deliveries, along with a recommended route. Using software in this step significantly reduces operational time since what can take hours to do manually is automated with the software.
• Step 4: The agents set out with the parcel for delivery.
• Step 5: The parcel is finally delivered to the customer and the manufacturer receives proof of delivery.

As you can see, the process is pretty long.

However, it can be shortened massively with last-mile software and streamlined supply chain management. It is advisable to shorten the process as much as possible.

This is because, with faster systems, you will be able to offer same-day delivery. After all, 25% of customers abandon the cart if same-day delivery options are unavailable.

What Are The Challenges With Final Mile Deliveries?

Success has no shortcuts or substitutes for hard work. But how can you work hard if you don’t know the challenges ahead?

The software provides strategies to help overcome last-mile delivery challenges. Let us look at some of them here:

1. Same-day Delivery Expectations

Amazon’s same-day delivery services have driven customer expectations to an all-time high and made their patience go to an all-time low.

If you do not increase your delivery speed, you are likely to lose 30% of millennial buyers!

Managing such a service demands strong infrastructure and management, especially for global businesses operating beyond local vendors.

2. Managing Deliveries In Different Geographic Segments

The kind of delivery management you require for rural areas is very different from what you require for bigmetropolitan cities. After all, customer expectations are different, delivery partners’ exposure differs, and so does the area’s infrastructure.

Building service resilience for both – unplanned rural areas and well as high-rise societies – is not a child’s play. From vehicle management to route planning, the approach is different, and you will have to build on them simultaneously to maximise your reach.

3. Meeting ETAs In Spite of Road Congestions

Everybody hates traffic congestion. But you know who hates them the most? People in a hurry! And you know who is in a lot of hurry? Delivery persons carrying packages in the final mile supply chain!

Traffic congestion is a huge problem when businesses promise that customers will get their package in 10 minutes. Even a 5-minute delay means a 50% delay—and that is HUGE!

After all, 70% of consumers will say that if they receive a package late, they are more likely to browse the competition for future services! However, traffic cannot be avoided and it becomes a huge challenge for businesses to navigate the roads when the car in front of you will JUST. NOT. MOVE!

4. Providing Affordable Deliveries With Rising Costs

The final mile delivery segment takes up about 53% of the total shipping cost of a package. What’s more, a single failed delivery can cost about $18.

However, regardless of what it costs the business, the end consumer will not pay too much for doorstep delivery. (If you charge it, you are likely to lose all loyalty!)

With rising fuel, manpower, and infrastructural costs, managing affordable deliveries becomes a HUGE challenge for businesses offering doorstep delivery (engaging in final mile logistics).

Insider tip – Last mile delivery solution helps you balance customer satisfaction and cost at the same time.

5. Managing a Complex Network of Drivers

The larger the operational area, the bigger the complications!

Businesses have to maintain a vast network of drivers and riders. Managing their attendance, productivity, tasks, and performance is tricky. Furthermore, it can be very confusing and draining without a guide on how to schedule delivery drivers efficiently.

Obviously, the more the drivers and orders, the more the number of trips a manager will have to manage and maintain.

What’s the Benefit of Final Mile Delivery Software?

Sure thing, the challenges to final mile logistics are overwhelming. But you don’t have to worry about anything because you use last mile delivery software, don’t you?

It’s okay (for now) if you don’t, though; because after reading the following benefits, you will definitely start using technology to your advantage!

1. Real-time Tracking and Visibility

Last mile tracking is one of the primary features of any final mile delivery software. Therefore, you will gain maximum visibility into your operations. And the higher the visibility, the more you can be satisfied that everything is okay. And even if it isn’t – at least you will know before it’s too late!

2. Trip, Task, and Capacity Management

The software will collect all the data regarding delivery windows, package size, drivers, etc. Then, it creates the most efficient route through the route optimisation feature. At the same time, it offers payload capacity management for each vehicle. You also get a rider roster for managing drivers’ shifts. Pretty, nifty, right?

3. Increased Operational Efficiency

A final mile delivery software will ensure that all tasks, trips, orders, drivers, and all the rest will be streamlined. With fewer manual mistakes, you will definitely see a huge spike in operational efficiency.

This efficiency can also be observed in how much more time your managers will have at hand to strategize better! You’ll boost your revenue with a route optimization solution. This solution also reduces time, effort, manpower, and resource consumption.

4. Reduced Delivery Errors and Delays

You no longer have to deal with delivery errors. The right delivery management system for the final mile automates your efforts. It eliminates manual errors that can cost you time, effort, and money.

Moreover, all the transparency will come in handy when you can navigate any errors that might have occurred.

5. Enhanced Customer Experience

With deliveries made on time and in a cost-effective manner, you are sure to improve customer experience. Faster and cheaper deliveries are the two most important factors to retain clients in your business.

Since you can now maintain ETA transparency, customers are likely to trust your deliveries more too!

6. Improved Communication and Coordination

Piggybacking on the previous benefit, if your delivery management is able to provide affordable and fast deliveries, why will customers not be happy? Every good final mile delivery management gets you a loyal customer!

It shares ETA with customers to enhance visibility and communication. Delivery riders can coordinate through the rider app. They get an app chatbox where they can chat with the in-office team.

Improve Customer Experience With TrackoMile

Final mile delivery logistics is the backbone of seamless deliveries and strong customer loyalty. It’s not just here to stay but is revolutionizing the logistics industry. With advancing technology, customer expectations are rising, and so is the competition.

Don’t let new players outshine you! That’s why you need TrackoMile – your ultimate last-mile delivery solution.

Let’s team up to make your final mile deliveries smoother and your business stronger every day. What are you waiting for? Let’s grow together!

Frequently Asked Questions!

• How long does final mile delivery take?

  Final mile delivery usually takes 1-2 days. It can vary based on location, traffic, weather, and delivery routes.

• What is the Final mile delivery process?

  The process involves transporting packages from a local hub to the customer's address. It focuses on getting it to the right door on time.

• Why does Final mile delivery take so long?

  Delays can happen due to traffic, weather, remote areas, complex routes, or large package volumes.

• What does it mean when my package arrives at the final mile delivery station?

  It means your package is in the local area, ready for delivery. It’s the last step before it reaches your door.