Last-Mile Delivery is the portion of the Supply Chain that represents delivery to the end user. The end use could be a consumer or a business entity. Thus, businesses like Swift Delivery have begun racing to develop innovative technologies and experimental supply chain methods to increase parcel volume, fasten deliveries, and delight customers to cut costs.
Where is The Last Mile Issue?
Suppose you have tried to track your package in real-time online and noted that it was “out for delivery” forever. In that case, you understand the last mile problem is inefficiency because the final bit of shipment involves many stops with low drop sizes.
Delivery points along your route could be several miles apart for those in rural areas, with minimal packages being dropped off at each end. However, in cities, the perception isn’t much better; any urban area that makes up for in-stop proximity is negated by the expected delays caused by traffic congestion.
The inefficiencies and costs of the last mile issue are only compounded by the ever-rising number of eCommerce in US retail sales; this increase has raised the number of parcels delivered per and expanded customer expectations to include free delivery.
Costs of Last-Mile Delivery
These last-mile delivery costs are substantial as part of the total shipping cost; they comprise about 53% of the overall cost. In addition, with the growing demand for “free shipping,” clients are less willing to budge on a delivery fee. These facts force retailers and logistics partners to bear the cost of transportation to the intended destinations. Thus, the last mile becomes the first place they’re looking to implement new drive and technology improvements.
Technology Solutions to Improve Last-Mile Logistics
In logistics, the “last mile” is often the most important. This refers to the final step in the delivery process when the package is moved from one destination to its final stop. Last mile delivery can range from a few blocks to more than 50 miles, and it’s often the most demanding part of the journey.
Many companies are turning to last mile logistics solutions to meet this challenge. These services help shippers get their products to consumers or businesses quickly and cost-effectively. For example, Swift is a regional carrier specializing in last mile delivery. We offer flexible pick-up and delivery times, always willing to accommodate special requests that large shipping companies such as ups or FedEx cannot provide. So if you’re looking for a cost-effective way, contact Swift or use route optimization software for last mile optimization.
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