Last mile delivery is a key factor in ecommerce and it’s something that businesses need to consider when planning their supply chain. The cost of shipping has risen dramatically and is now a major expense. Customers are demanding faster deliveries and if they don’t receive what they ordered on time, they will seek out another supplier. Taking steps to optimize your deliveries will save you money.
This is why many trucking companies have started to invest in new technologies and innovations that are reshaping the last mile delivery landscape. Some are even able to do their last mile deliveries in-house, which is great for cutting costs and reducing the amount of paperwork involved. Let’s take a look at some of the top trends that are changing last mile delivery.
Managing the logistics of a fleet is challenging for companies, especially with limited resources during the pandemic. The driver shortage and the increase in demand have caused a strain on fleet managers and it’s essential for them to find ways to cut costs. One way is to reduce the number of trips by optimizing routes. This will save fuel, as drivers spend a lot of their time idling and it will also reduce the amount of time that it takes to make a delivery.
Other trends that are helping to save on costs include leveraging multiple fulfillment locations, including warehouses in high demand density areas and dark stores for pickups. This allows for products to be quickly picked up from a nearby store, rather than being shipped from a warehouse all the way across the country.
Another way to cut costs is to use specialized delivery vehicles for the final mile. These vehicles can handle a higher number of packages at once and are better equipped to handle weather conditions. They are also smaller, which makes them more maneuverable and enables companies to get their packages to the customer more quickly.
Lastly, there are several ways to reduce transportation costs, such as using drones and self-driving vehicles for last mile delivery. These vehicles can handle a much larger volume of deliveries than traditional vehicles and are expected to revolutionize the industry. This will help to reduce the cost of labor and fuel while improving customer experience.
The final mile of a delivery is the most costly part and can make or break a company’s profit margins. If you aren’t careful to manage your transport costs, you will end up losing customers and lowering your profits. The best way to avoid this is to use a routing software such as Upper Route Planner. This will automate the routing process and allow you to create routes in seconds. This will save your team time and money while saving you on gas and fuel costs. It will also help you improve your visibility and communication with customers, so that they have peace of mind when shopping with your business. This will ultimately lead to a more successful business.