Few aspects of the logistics and transportation industry are as troublesome as last mile delivery. For business owners, last mile delivery represents a major percentage of their shipping costs (estimates range from 28% to 53%). Despite its many challenges, partnering with an established and savvy transportation company can greatly ease the challenges of last mile delivery.
Defining Last Mile Delivery
In the supply chain, the last mile is the last phase of transporting a product to its final destination. In other words, if you’re tracking a delivery, you can see the route it takes as it hops from one warehouse or other hub to the next. When the package is marked as “out for delivery,” this means it’s somewhere in your local community on the final leg of its journey to your doorstep. This is the last mile, regardless of whether the actual distance is one mile or not.
Understanding the Challenges of Last Mile Delivery
Last mile delivery is fraught with challenges. One of them is consumer expectations. Thanks to Amazon Prime, consumers have come to take for granted fast, free delivery. It’s an expectation, rather than a perk. Yet, that last mile can often take a long time to complete, which can frustrate customers and tarnish their perceptions of the brand. The last mile can take a long time regardless of the environment. In a rural community, a driver may have to go for several miles just to drop off one package. Drop sites are typically spaced far apart. Because of this, you might assume that delivery in urban areas would be more efficient. However, urban drivers must contend with traffic jams and road construction.
Overcoming the Challenges
As problematic as last mile delivery is, there are workarounds. Businesses should partner with a savvy logistics company that understands how to use technological solutions to overcome last mile challenges. Through careful route planning to cut delivery times and reporting to enhance transparency, companies can keep their costs low while pleasing their customers.
Xcel Delivery Services offers both long-distance and last mile delivery services throughout Southern Arizona. Our entire team is taking strict precautions to promote the health and safety of the communities we serve, including offering contact-free delivery. If you have any questions, you can reach out to our team in Phoenix at (602) 368-1300.
