What is Last Mile Delivery?

Do you know that last mile delivery accounts for 53% of most shipping costs? That should make you realize the importance of this vital aspect of shipping logistics. Understanding last mile delivery is non-negotiable in freight shipping.

If this aspect fails, every other effort becomes useless. In this article, we will have a comprehensive discussion on last mile delivery. In the end, you will know the last mile delivery meaning and its challenges. Most importantly, you will find valuable information on how to ensure this aspect is a success.

Last Mile Delivery Meaning

What is a last mile delivery? In all simplicity, last mile delivery is the final part of freight shipping where you get your shipments. This is the part where your products are moved from the closest warehouse to your home or office. The activities involved in last mile delivery determine the efficiency of delivery and customer satisfaction.

In today’s increasingly competitive market, organizations are aware of the demand for effective delivery. Therefore, they prioritize their last mile delivery. It is understandable if you assume that last mile delivery should be the simplest and cheapest aspect of shipping. However, that is not the case. Breaking news - this is the most expensive and complicated part of shipping logistics!

Last Mile Delivery Steps

There are five major steps involved based on last mile delivery Amazon. The first step is the entering of orders into a centralized digital system. This makes it easy for the shipping company to know and monitor all the goods they are delivering. This aspect requires tracking of shipments from the warehouse until they arrive at the final destination. Typically, the receiver will get a tracking number with which they can monitor their goods.

The second step is the arrival of the shipments at the transportation hub. This is the final packaging phase before delivering the goods. The third step is the designation of the shipments to transportation personnel. The goods are assigned based on address and route.

The fourth step is the scanning of orders before loading them for delivery. By this time, excellent shipping companies notify the receiver of the goods’ status. Finally, the delivery vehicles transport the shipments to their final destination. Last mile delivery tracking continues until the receiver gets the goods.

Last Mile Delivery Services

Many shipping logistic companies prefer large-scale shipping to last mile delivery service. This is because, in large-scale shipping, the company delivers a large number of shipments to a particular location. However, in last mile delivery, the company delivers many small packages to multiple locations. Companies can easily lose their profits to logistics in last mile delivery without experience and expertise.

The delivery to many locations means the delivery trucks will stop at different places. It also requires the company to manage several delivery trucks. The complexity involved is the reason many organizations avoid running these services. Nonetheless, these services are crucial to couriers, florists, restaurants, and pharmacies offering deliveries. Generally, e-commerce companies need these services.

For last mile delivery solutions, reputable shipping companies use several cutting-edge technological advancements. One of them is route planning. This automated system enables delivery trucks to navigate routes to avoid time wastage. Navigating congested cities and rural areas can be challenging, causing delayed deliveries. However, these issues are navigated with this last mile delivery technology.

Route planning sends updates on traffic situations in real time to delivery drivers. This helps the drivers to choose the fastest routes to their destinations, improving delivery efficiency. This technology gives top shipping logistics companies the edge over their competitors. It is easier for such companies to offer excellent delivery services to their customers, ensuring customer satisfaction.

What is last mile delivery station? This is the warehouse from which goods are delivered to the final destination. Transporting goods from last mile delivery stations costs $10 on average per package. However, for large items such as ovens and refrigerators, the cost per package can be up to $50. Typically, customers pay for the delivery apart from the price of the products they intend to purchase.

Challenges of Last Mile Delivery

Are you aware that at least 5% of last mile deliveries fail? This is one of the major challenges of last mile delivery. For companies delivering to fulfilment centers, this hardly happens. However, when delivering to the doorsteps of customers, this can happen. Sometimes, this might be due to an accident. What continues to be the leading cause of accidents in the last mile delivery industry? What continues to be the leading cause of accidents in the last mile delivery industry is risky driving behaviors.

Another challenge of last mile delivery is the possibility of out-of-route miles. In other words, the delivery driver may get the routes wrong. Consequently, the driver will have to retrace the route, leading to delayed deliveries. The delay in delivery can clash with the schedule of the customer, leading to a failed delivery.

For e-commerce companies, there is a possibility of a refund or return in last mile delivery. A customer might not be satisfied with the product and want a replacement or refund. In case of a replacement, the company will have to deliver the product for free. This problem accounts for 20% of the last mile deliveries in the US. Transparency in the buying and shipping process can help to reduce the possibility of this issue.

More so, idling and downtimes are part and parcel of the last mile delivery system. Delivery trucks will have to wait at different locations, increasing the chance of idling. Meanwhile, gallons of fuel are wasted during these periods. Reputable shipping logistic companies offer last mile delivery solution while reducing idling and downtime through automated route planning.

What is First Mile and Last Mile Delivery?

An understanding of last mile delivery without knowing first mile delivery is not complete. First mile delivery affects the efficiency of last mile delivery. So, what is first mile and last mile delivery? First mile delivery is the initial part of the delivery process. This is when the shipments leave the seller or manufacturer’s facility and get to the distribution center.

First mile delivery begins at the seller’s facility. From there, a courier service picks up the orders to deliver them to the distribution center. International and national sellers usually have several warehouses. These warehouses are designated for various countries and regions. So, the shipments will be delivered to the warehouse closest to the location of certain buyers.

First mile delivery ends when the shipments arrive at the designated warehouse. From that point, last mile delivery begins. Typically, first mile delivery does not have stops and downtimes. This is because large quantities of goods are delivered at once to the distribution center. However, that’s not the case in last mile delivery, where multiple small packages are delivered to several locations.

Due to the difference in the two processes, last mile delivery is more complex and expensive. Despite its complexity, the benefits of last mile delivery are numerous for international traders. If you are in that category, finding a tested and trusted shipping logistics company is essential. Such companies have the experience, technical knowledge, and technological innovations that make last-mile delivery seamless. Their effective delivery last mile tracking enhances their customers’ experience.