Breaking Down the “Last Mile Delivery” Challenges and How To Turn Them Into An Opportunity
Mr. Gautam Kapoor, COO, and Co-Founder, Shiprocket was live at 9th India Warehousing Show held on 21st June 2019 at Pragati Maidan, New Delhi. Read on to know what he thinks about the last mile deliveries!
You have an office dinner tomorrow, and the idea of going places to buy a dress seems daunting. You are bogged down by the other important stuff in your office. Hence, you opt for an eCommerce store. Will speedy delivery be just a “nice to have” option for you?
No. It will be your expectation, right? Likewise, speedy fulfillment has become an integral part of every online shopping experience. Furthermore, if logistics and 3PL companies want a shot at thwarting the ever-looming Amazon or Flipkart, it has to be their priority.
But, what exactly is the ‘last mile delivery’?
In a product’s journey starting from a warehouse until the customer’s door, ‘last mile’ is the final step of the entire process. Last mile delivery is the key to customer satisfaction.
What are the “Last Mile Delivery” challenges?
If you are tracking your products online and see that it is out for delivery, you expect it to arrive within 1 or 2 days. Wonder if it doesn’t reach you in next 4-5 days, what would you think?
You would already understand that the last mile delivery is inefficient! That’s true. The final leg of shipment typically involves multiple stoppages with low drop sizes.
Customers want real-time visibility of their orders. They want to know the exact time of delivery. Last mile delivery companies often face the issue of operating inefficiency. Since drive time is critical for making on-time deliveries, having optimized route plans, driver’s locations, and driver’s contact details are necessary.
Another issue which can cause hindrance is the missed delivery. Reasons for missed deliveries can be rescheduling or receiver not available. This significantly adds to the cost.
How Courier Aggregators Like Shiprocket Can Improve Last Mile Logistics?
- Increasing proximity with the customers can help in understanding the requirements of the customers. Some customers want speedy deliveries (like within 24 hours or so).
- Traditional logistics tend to concentrate on fulfillment centers in a few places only. By focussing on the areas of highest concentration, both delivery and return times are reduced along with the cost of fuel.
- Keeping the customers in the loop with timely notifications and emails can help ensure maximum customer satisfaction. Continuous notifications ensure that the customers are available at the time and place of delivery.
- With Shiprocket you can automate the workflow, take actions for undelivered orders in real time and reduce RTO orders by 2-5%.