Quick Guide To Optimizing Your Last Mile Delivery Costs

What is last mile delivery

Last mile delivery is also known as last mile logistics. It is the process or the journey in which goods are transported from the distribution hub to the final destination. The main aim and goal of last mile delivery is to deliver these packages with accuracy, affordability, and efficiency.

Why is last mile delivery expensive?

For many companies, last mile deliveries are expensive. Recent studies show that the average cost per last mile delivery incurred to organizations in 2018 was USD 10, in an estimated last mile delivery market size of $30.2B. One of the main reasons for this is that last mile deliveries can be inefficient, and can be delayed, especially when there are same day delivery demands. They can be a burden due to the cost of managing the deliveries when they are delayed. Moreover, there can be many stops along the way or the delivery routes can be very long, which can be a burden on the costs due to the high fuel consumption. There are also many chances of failed deliveries. A generally single failed delivery costs $17.78, and approximately more than 5% of all last mile deliveries fail due to a plethora of reasons. 

How to reduce the costs of last mile delivery?

Using a delivery management software with the right features that are customized for a last mile delivery can help optimize and reduce the costs that are involved in the process. Here are the different ways in which this can be done:

Route Optimization

Route optimization feature is really helpful in helping reduce the costs linked to last mile deliveries in many ways. First of all, they can reduce the costs related to fuel consumption and the long travel times and routes. It can help save inefficient and late or delayed deliveries, and therefore reduce the costs linked to it. It is reported that route optimization can help make deliveries become more than 60% efficient.

Real Time Tracking

Real time tracking is also known as rela time visibility. One of the financial costs or burdens related to last mile deliveries is due to failed deliveries due to lost items or misplaced items. Real time visibility can help keep track of the parcels all the way to the last stp so that any misplacement or loss along the way can be mitigated and dealt with.

Increasing Fleet Visibility

Fleet visibility is important because it can help keep you connected with the fleet and informed about there whereabouts and the location or status of the fleet. Increasing fleet visibility can help increase accountability and keep the fleet operations efficient and profitable.

Enhancing Customer Engagement

Customer engagement and keeping them in the loop regarding the delivery location can help reduce the rate of returned deliveries because of customers not being aware of when the parcel would arrive, and the likes of that. 

Encouraging Business Analytics 

Business analytics help create the best reports about business operations that can help you realize why your last mile delivery costs are up, the loopholes in that process, and how to reduce the last mile delivery costs. Business analytics can make the cost of last mile deliveries optimized.

Shipox is a data-driven Food Delivery Management Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. To learn more, you can sign up for a quick demo here.