What is Last Mile Delivery?
Online shopping has become a part of the norm in today’s society, primarily due to convenience. It is so easy to simply click on an item you want online, click expedited delivery and see the package on your door in two days.
The reality is that many companies lack the right e-commerce delivery solutions that can keep up with the delivery speed as there are a TON of steps that go into ensuring your order makes it to your doorstep.
When companies talk about last mile distribution and delivery, it’s the last step in the delivery process, which is how an order gets to a customer’s home.
Businesses have found that in order to boost profits with the growing number of online shoppers, the goal is now to efficiently execute the delivery process to meet demand and provide online shopping convenience for their customers.
Though it may appear straightforward, there’s a complexity behind the scenes when you make an online purchase. Companies concentrate on optimizing last-mile shipping and delivery, with most of them adhering to these common steps.
Last Mile Delivery, Explained.
**Click to auto-scroll by section
What Really Happens In Last Mile Delivery?
While it seems simple, there is a lot going on behind the scenes when you order something online. Companies focus on the best way to improve last mile shipping and delivery, but most all follow these similar steps.
- All systems go.
When a customer places an order, it goes into a company’s centralized system for inbound and outbound deliveries. - Off to HQ.
As orders enter the system, goods from the main hub, usually a manufacturer or a warehouse, arrive to begin the delivery process. - The route tree.
This is where the optimization process starts. The system determines how deliveries are made based on location and other factors. - Time for assignments.
Company makes delivery assignments to workers, either in-house or contract employees. Items are tracked to ensure inventory is correct. - Stay tracked.
Each item is scanned before going off for delivery to ensure inventory is correct. - Where’s the proof?
Each company does it different, but most require proof of delivery, either electronic or print, for inventory purposes.
Last Mile Breakdown
What Are Customers Looking For?
Let’s say you’re treating yourself. You just ordered a new shirt on Amazon and can’t wait to try it on. You want it as soon as possible, right? The No. 1 priority for companies in the last mile is speed. How quickly can the customer get they want?
Fast delivery
The list of last mile delivery companies is growing and most all are focusing on how to optimize delivery based on how quickly they can finish the process. The standard is Amazon, who set the market, known best for their 2-day shipping option.
Amazon last mile delivery is a little different, because Amazon Prime also gives an option to pay for same-day delivery, making the demand even higher.
Precise order tracking
Customers want to know how long it will take before their order arrives. While it differs based on the company, most have their own unique way of order tracking.
Some have a last mile delivery courier that will provide a general idea of where your order is on its route, while others have real-time GPS tracking so customers know where they stand.
For example, LoadUp has a unique tracking system, where customers just have to put in their zip code and the name on the order to get a status for removal, assembly and delivery jobs.
Specialized services
Delivery services are a lot like any other industry. In order to gain an advantage in the marketplace, you’ll be better off finding something unique or an area where your company exceeds to separate from the competition. What can your company specialize in?
At LoadUp, customers can get a guaranteed price for services online instead of an estimate. Plus, we offer flexible payment options like Book Now, Pay Later and much more.
We specialize in removing mattresses, couches and furniture, game tables, desks and much more. Plus, our Loaders can provide other solutions such as donation pickups, hourly labor and moving services, property cleanouts and more. Our technology allows us to crowdsource to hire workers, which cuts out the cost of a courier for delivery, as well as reduce costs overall.
Optimizing Cost-Effective Last Mile Delivery.
In theory, the process where an item goes from a manufacturer to a customer’s home seems simple, but delivery services across the country have wracked their brain to figure out the best way to operate efficiently.
In the end, it’s all about the money. How much are you paying and how much are you saving? That’s the first step toward optimizing the last mile delivery service.
Where to cut costs:
Typically, the last mile of the delivery process accounts for over half of the total shipping cost. From a wider view, operations generally account for 40 percent of the world’s entire supply chain cost. For reference, each delivery costs roughly $10. So basically, services are already behind when taking on the challenge.
Problems occur mainly due to the large amount of transportation required to get single packages to customer’s homes, rather than items in bulk to one specific location.
Improve routing for faster delivery speed.
Whether its a large fleet of white vans preparing for delivery or a contract with the postal service, last mile delivery companies have to make arrangements to ensure their goods are being transported quickly and safely.
More and more companies have started using technology, such as a last mile delivery app, real-time GPS tracking, SMS notifications and other updates on applications to ensure the customer is fully in the loop when it comes to their order.
How does LoadUp do last mile delivery? LEARN MORE ❯
Solving Traditional Last Mile Delivery Issues.
Solving the issues with last mile delivery come down to decreasing costs and increasing volume. The more you can deliver the happier the customer. Likewise, the less you spend on a budget will keep the bosses happy.
How can I reduce delivery costs?
Last mile delivery costs continue to soar in the E-commerce sector. With the rise of free shipping, most customers don’t even bother paying a delivery fee, which often means the company has to foot the bill. But, don’t fret! There are some potential solutions.
Give em what they want!
Customers often order items to be shipped to their home even when they aren’t there, which can cause problems for couriers who may need a signature.
At checkout, companies can give the customer a number of different options, including specific delivery windows, to avoid the risk of a repeat trip.
Revolutionizing delivery with technology.
Technology is pretty cool, right? We use it everyday, but we should be using it more in the last mile delivery process! Applications and ideas such as auto-dispatch technology, optimized delivery routes online and a delivery verification system can all help a company.
The ultimate end goal is to keep track of their goods and how quickly they’re delivered.
📲 LoadUp is using the same cutting-edge technology for junk removal jobs to optimize last mile delivery. Interested in being a partner? Sign up here and join the list!
Can Crowdsourcing help with Last Mile Delivery?
While some companies rely on a fleet of vehicles with hired drivers to run deliveries, the costs for this often meet the demands of customers. While there are many ways to optimize the delivery process, one solution is to rely on a network!
With the rise of Uber, AirBnb and Postmates, location-based crowdsourcing is an attractive option for companies to use for last-mile delivery. By relying on the growing gig economy, crowdsourcing helps out both the consumer, the partner and the company itself!
By employing contract workers with easy-to-use technology, companies can save on costs, have little assets in operations and overall, improve the customer experience.
For the customer, crowdsourcing makes it easier for orders to arrive quickly and ensures the customer is in their home. For the retailer, it allows flexibility for finances.
With the only remaining expense being the warehouse for manufacturing, companies can turn their focus (and money) toward deliveries. Not only that, but companies have variability, meaning they can scale their operations up or back as they deem fit.
LoadUp’s professional network.
LoadUp deploys a network of trusted professionals who are background-checked and contractually work in junk removal, assembly and more.
This crowdsourcing method and our potential last mile delivery software can allow us to reduce costs that come with traditional methods of delivery such as a fleet or courier.
Our booking system allows us to optimize last mile delivery tracking and our GPS system lets our customers know when Loaders are on the way.
❓ Questions about our prices? Learn more with our junk removal pricing guide.
Related Articles from the Trash Talk blog:
