January 3, 2023

Why is last mile delivery challenging?

Last-mile delivery is the last link in a long chain of logistics events. E-commerce businesses face an ever-increasing demand for faster or even same-day delivery solutions, but some last-mile problems and challenges can slow down the process. Ordering and collection processes can run smoothly, but an inefficient logistics approach during transit can negatively impact last-mile delivery costs and, in extreme cases, may cause businesses to lose valuable customers.

The hardships of last-mile deliveries

The issue with last-mile delivery is that it is the most complex, time-consuming, and expensive step in the shipping process. Yet it is the most critical.

There has been a continuous rise in e-commerce activity, substantially increasing the volume of goods transported. At the same time, customer expectations have evolved to include fast, if not free, delivery.

Warehouse worker

Challenges of last-mile delivery

With a proper final-mile strategy, businesses are set up to succeed in the long run. However, business owners may find themselves in a situation where they must deal with increased costs, late deliveries, and unsatisfied customers. Failed deliveries and unoptimized route planning could lead to lower profit margins and higher operating costs. Also, the quality of the delivery service has a significant impact on customer satisfaction. If clients have a negative last-mile delivery experience, they tend to be hesitant to purchase from the same company again, and they may feel more inclined to cancel an order they think will take too long.

Businesses are always trying to reduce costs without affecting the quality of their service. However, being that last-mile transportation is as crucial as it is, many factors contribute to the final delivery fees, such as fuel cost, failed deliveries, idling and downtime, and out-of-route miles.

Shipment management

Last-mile strategies

Business owners can implement some strategies to improve last-mile delivery:

The biggest challenges that threaten logistics operations can be solved by implementing an advanced solution to streamline the processes and make them work efficiently. At Last Mile Logistics, we have worked hard for years to minimize these problems, such as missed schedules, issues in route optimization, lack of proof of delivery, or inability to support contactless payments. We have the expertise to increase our partner’s productivity.