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In logistics and transportation, last-mile delivery is the last step of the delivery process where a package reaches its final destination. In business, last-mile delivery is a crucial step as it greatly affects the overall costs and determines customer satisfaction.
A study shows that nearly 80% of customers won’t buy again from a seller that fails to deliver on time. This finding demonstrates the importance of investing in logistics.
Investment aside, the challenges in logistics are inevitable. However, with careful planning and a great logistics partner, all the challenges can be overcome.
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Last-mile delivery is very costly as it accounts for 53%, or even higher, of total delivery costs. One reason is the inadequate infrastructure to deliver the goods on time.
Failed delivery attempts, long routes, driver salaries, and other operating costs also contribute to the high costs. The challenge of high delivery costs becomes very problematic when fierce competition and customer expectations of lower shipping rates interplay.
The challenge of planning a delivery route planning is influenced by several factors, such as driver schedules, vehicle capabilities and features, and access to the final destinations.
They can be difficult to manage without software, such as logistics software or route optimization software, to ensure the best, most efficient route.
Tracking and visibility are essential to build and maintain customer loyalty. Customers want transparency about their packages. They want to know the real-time location of their package and monitor its movement accurately.
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Failed and late deliveries are more likely to occur in the last-mile delivery.Even a slight mistake may lead to cost overruns.
Deliveries may fail for several reasons, such as the consumer being absent at the destination, the courier arriving after or before the estimated delivery time, or the destination address being inaccurate.
Unexpected events can also disrupt the delivery process. The drivers may come across unforeseen circumstances, such as traffic congestion, bad weather, or vehicle problems on the road.
Therefore, the carrier should prepare a contingency plan while maintaining communication with the customer. Thus, in case of unexpected events, the carrier can immediately execute an alternative solution.
Below are some tips on how to overcome those challenges:
Select the best shipping method: The shipping method should be selected based on the types of goods and the destination.
Optimize the route: Leverage technologies to plan efficient delivery routes and avoid traffic congestion.
Use a tracking system: Let the customers track the shipment in real time.
Focus on customer experience: Ensure the delivery process runs smoothly and easily for customers.
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Technologies play an important role in optimizing last-mile delivery. Some technologies to use are as follows:
Transportation Management System: Plan an efficient delivery route.
Tracking Device: Track and monitor the current location and condition of the package during shipment.
Mobile App: Help customers track their packages and communicate with couriers.
Those huge challenges emphasize that last-mile delivery should not be taken lightly. Collaborating with a trusted logistics partner becomes necessary to ensure that this last step of the delivery process can go without a hitch.
One professional logistics company you can partner with to overcome the aforementioned challenges is SELOG, a business unit of PT Serasi Autoraya (SERA) and part of the Astra Group.
With more than 20 years of experience, SELOG offers a wide range of comprehensive and end-to-end logistics services, such as Trucking, Shipping Services, Freight Forwarding, Warehousing, and Project Cargo.
For last-mile delivery services, SELOG can facilitate deliveries to hard-to-access destinations with a fleet consisting of, among others, blind vans and single-rear-axle, four-wheel Colt Diesel trucks.
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SELOG’s services bring greater convenience, effectiveness, and efficiency to your business by leveraging the latest digital technologies, including the Astra Fleet Management Solution (AstraFMS) and Warehouse Management System (WMS).
Both technologies make it easier for businesses to track the delivery vehicles in real time and ensure the safety of vehicles and drivers. They also help optimize the process of goods receipt, storage, stock management, pick-up, packaging, and shipping.