In the competitive business landscape of today, customers expect faster, more flexible delivery options, such as same-day or next-day delivery, and even free delivery without compromising on product quality.
Digital technology is revolutionizing the supply chain and has led to the emergence of last-mile delivery options, which have become a vital driver of growth by improving customer satisfaction. To ensure sustainable profitability, it is essential to digitize logistics operations, with a particular focus on last-mile delivery management. By operating at the forefront of this new technology, companies can achieve significant profitability and growth.
What is last-mile delivery management? Why is it important today?
Last-mile delivery management refers to the process of delivering goods to the end customer. It is the final step in the supply chain and involves a complex set of operations, including transportation, route optimization, and delivery tracking. In recent years, last-mile delivery management has become increasingly important due to the growth of e-commerce and the rise of on-demand delivery services.
According to Statista, By 2027, the global last-mile delivery market is expected to grow to more than 200 billion U.S. dollars from 108.1 billion U.S. dollars in 2020.
Last-mile delivery can account for up to 53% of the total delivery cost, making it a critical factor in the profitability of logistics operations.
Challenges faced in last-mile delivery management:
High Fuel Costs
In addition, the rise of e-commerce has increased demand for faster, and more secure delivery options, which puts additional pressure on logistics companies to streamline their last-mile delivery operations.
Ways to optimize last-mile delivery management
Use Route Optimization Software:
According to a survey, inefficient routing is the biggest challenge in last-mile delivery management, accounting for 40% of total delivery costs. To address this challenge, logistics companies can use route optimization software that calculates the most efficient delivery routes based on factors such as traffic, distance, and delivery time windows.
Adopt Delivery Management Apps:
Delivery management apps can help drivers to manage their deliveries effectively, track their progress, and communicate with customers. These apps can also provide real-time data on delivery status, delivery times, and inventory levels. According to a survey, 73% of customers prefer to track their deliveries in real-time, which highlights the importance of these apps in improving customer experience.
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Use Predictive Analytics:
Predictive analytics can help logistics companies to optimize last-mile delivery by predicting demand, identifying potential delivery delays, and optimizing delivery routes. According to a report, predictive analytics can reduce last-mile delivery costs by up to 40% and improve delivery times by up to 30%.
There are many more software solutions such as work delegation, and real-time alerts. By implementing these tools, businesses can reduce last-mile delivery costs, increase revenue, and provide customers with a better overall experience.
Low code and no-code Development for last-mile delivery management solution
According to a report by Grand View Research, the global autonomous last-mile delivery market size was valued at USD 1.14 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 23.5% from 2023 to 2030. When it comes to last-mile delivery management, low-code, and no-code platforms can play a crucial role in optimizing the delivery process. These platforms offer several benefits, including faster development time, reduced costs, and increased flexibility.
The latest trend in last-mile delivery management:
Same-day and next-day delivery is becoming the new standard: With the rise of e-commerce, customers are expecting faster delivery times. On an avg, 60% of customers are willing to pay extra for same-day or instant delivery.
Delivery tracking and notifications are essential: Customers want to know exactly where their package is and when it will arrive.
The use of drones and autonomous vehicles for last-mile delivery is on the rise.
In conclusion, last-mile delivery management is an essential component of the supply chain, and its significance has only increased with the growth of e-commerce and on-demand delivery services.
The challenges faced in last-mile delivery can have a significant impact on the profitability of logistics operations.
With the latest trends and software solutions, it is clear that businesses must continue to innovate and adapt by focusing on last-mile delivery management.