The Last Mile, Not as Simple as it Sounds
The ‘last mile’ in last-mile delivery can make this delivery service seem quick and easy to navigate. Unfortunately, this is not always the case. The process involves several challenging steps to ensure your customer’s satisfaction.
DROP2GO looks at three significant challenges to last-mile delivery and how to overcome them.
Last-Mile Delivery Challenges Management
Many businesses get last-mile delivery handled by subcontractors. In an ideal world, there would be no question, and you would easily manage it yourself. That way, you would feel more in control and not have to depend on outside businesses for your service delivery.
However, you would need more staff and more equipment to manage the logistics. The reality is that for many suppliers, doing their own last-mile delivery is just not feasible.
You may be lucky enough to find a subcontractor that fits perfectly into your business. However, this takes trial and error, time, and a lot of effort. Finding a last-mile company that works for your need is undeniably time consuming and stressful.
Luckily, DROP2GO solves all these issues by tackling the below issues. We reveal how below.
Challenge – Cost
Supply Chain Brain sites cost as one of the most prominent of the last mile delivery challenges. Although the customer often covers delivery costs, high delivery costs may put the customer off your product. Your choice of last-mile delivery subcontractor plays a big part in your expenses.
Customers also often expect free shipping. If you want to offer this, you need to ensure that it does not affect your profit margin.
Cost Saving Advice
Shop around, make sure that the subcontractor you are using is giving you bang for your buck! Before settling on a specific company, make sure that you have done your homework. We recommend getting quotations from several companies. It is good to meet with the subcontractor and discuss your specifications before they quote you. This way, you both know what is expected.
We are not saying that you should necessarily always choose the cheapest company. There are other factors besides cost in last-mile delivery challenges that are important. Make sure you choose someone within a price range that works for you.
DROP2GO’s software offers you a range of subcontractors ranked according to their reputation and price. So, you can tell straight away which one to choose. You are not bound to a specific subcontractor for every delivery. The DROP2GO app will keep track of your subcontractors for you to find the ones you like easily.
In addition, you have the option of creating your own network of delivery partners. You can manage their service levels, track your spend with them and provide them with the DROP2GO last-mile app to complete the delivery process. Thus ensuring that you are able to track all your deliveries real-time even when working with smaller or informal delivery partners.
Challenge Two – Route Inefficiency
Route inefficiency can result in a multitude of further problems. It can lead to delayed delivery and higher delivery costs. By not taking advantage of quick routes or planning for deliveries along the way, you are disadvantaged.
Unfortunately, suppliers have no control over the route that couriers use.
Solving Route Inefficiency
As a supplier, you are relying on subcontractors’ route planning. Again, we recommend a sit down with your subcontractor. Find out as much as you can before you commit. Discuss their route planning methods with them to make sure that they can meet your needs.
Software can be the answer to this problem. DROP2GO’s route optimisation ensures that you are always on the most efficient track available. Shorter routes means faster deliveries, less kms means lower delivery costs.
Challenge three – Missing Fulfilment Timelines
This can be the biggest battle for suppliers. This challenge can arise from many different avenues. Customers take your advertised delivery time very seriously; if goods are late, it reflects poorly on the supplier.
The issue arises from suppliers’ unrealistic advertising or failure to get the shipment to the transporter on time. It may also be a fault on the transporter’s side. Regardless of the reason, missed fulfilment timelines severely affect customer retention.
How to Meet Fulfilment Timelines
Suppliers need to ensure that they are advertising realistic delivery times. If your goods are in Durban, same-day delivery to Polokwane is not practical. If you do offer same or next day delivery, make sure that you have discussed this with your subcontractor.
You must ensure that your ducks are in a row to meet fulfilment timelines. Make sure that you meet the transporters stipulated drop off deadlines and do not promise impossible delivery times.
As a transporter, it is crucial for your reputation that you meet fulfilment timelines as promised. DROP2GO’s software allows transporters to specify the fulfilment timelines that they can meet. If transporters fail in this, it affects their trust score on the app. This lets suppliers know which subcontractors they can contact for the timeline they need.
DROP2GO, Offering You Last Mile Delivery Solutions
The DROP2GO app has been designed while taking last-mile delivery challenges and solutions into account. If you want to take the stress out of your last mile, DROP2GO is the way to turn.
We even offer a 30 day, first 50 delivery free trial to ensure you are happy.