Ordering online is quick and easy. However, behind every delivered package lies a major challenge: last mile delivery. This final step involves getting a product from the distribution center or store directly to the customer. Last mile delivery is not only the most complex step, but also the most expensive!
Indeed, it must reconcile speed, efficiency and profitability. Between traffic jams, growing consumer expectations and high logistics costs, retailers must juggle many obstacles.
The price to pay is not only monetary: a delayed or missed delivery is expensive in terms of customer satisfaction. Conversely, optimized logistics can make the difference and build lasting customer loyalty.
In this blog post, we discuss the various challenges related to last mile delivery as well as the technologies that can be used to address them.
As mentioned above, last mile delivery is the final step of delivery… and often the most complex and expensive! Between increasingly demanding customers, city traffic and high costs, companies must juggle many obstacles to ensure fast, efficient and sustainable deliveries.
The first challenge of last mile delivery is the high expectations that customers have for their parcels to be delivered. Amazon and other e-commerce giants have set the bar very high, forcing smaller businesses to keep up or risk losing customers.
Overnight delivery, specific time slots, eco-friendly options… Today’s consumers want everything, right away and, ideally, at no extra cost. Retailers must therefore find solutions to meet their customers’ expectations.
To learn all about good customer service in retail, check out our blog post!
Delivering in cities is a real headache: heavy traffic, pedestrian streets and traffic restrictions for polluting vehicles in particular. In some cities, delivery trucks cannot even drive at certain times! That causes many problems: delays, exploding costs and increasingly complex logistics.
Urban delivery is therefore a major challenge for companies that do home delivery!
Delivering a package to a customer’s doorstep is expensive! This is a major challenge for delivery companies. In fact, the last mile can represent up to 50% of the total cost of a delivery.
Why are these costs so high? In fact, it is because this stage is the most fragmented: multiple stops for a low volume of packages, complex routes and expensive labor. Added to this are failed deliveries (no-show customers, incorrect addresses, etc.), which result in additional trips and further increase the bill.
The environmental impact of last mile delivery is significant. Indeed, the more deliveries there are, the more vehicles there are on the roads and the more pollution there is.
With the explosion of e-commerce, the carbon footprint of the last mile is becoming a real ecological issue. Fortunately, alternatives such as deliveries by cargo bike or electric vehicles are starting to emerge. However, these solutions are not ideal for longer distances or for remote areas.
Did you know that up to 38% of items purchased online are returned? These returns create challenges for shipping companies. They must manage these returns without impacting other deliveries!
Fortunately, delivery companies can turn to technology to address these challenges. With artificial intelligence, advanced management tools, and new logistics solutions, businesses can now reduce the impacts of last mile delivery challenges.
Artificial intelligence helps companies meet the challenges of last mile delivery. Indeed, advanced planning algorithms allow carriers to choose the shortest and most efficient routes based on real-time traffic, weather conditions and delivery windows.
That means fewer miles driven, less fuel consumed, and more on-time deliveries! In addition, the use of artificial intelligence accelerates route optimization while reducing costs.
The integration of software solutions is revolutionizing last mile delivery management for merchants. Thanks to the integration between Alice POS and Cigo Tracker, managing deliveries has never been easier.
No more re-entering information! As soon as a sale is recorded in Alice POS, all key data – order, customer details, address and delivery date – are automatically sent to Cigo Tracker. Fewer errors, less wasted time.
With Cigo Tracker, route planning becomes child’s play. The solution optimizes routes based on traffic and customer schedules. As a bonus, it allows vehicles to be tracked in real time. Merchants stay in control, make adjustments as needed and offer faster and more reliable service!
Do you want to optimize the management of your orders and deliveries? Talk to our experts!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
To limit delivery failures and costs related to unnecessary journeys, smart lockers are increasingly being developed in urban areas. Customers can collect their packages at any time, thus reducing the number of delivery people passing through.
In addition, experiments around autonomous vehicles and delivery drones suggest a future where delivery will be even faster and more flexible!
Last mile delivery is the most complex and costly step that can also have a big impact on customer satisfaction. Businesses face many challenges in order to meet consumer expectations.
Fortunately, thanks to technologies like Alice POS that integrates with Cigo Tracker, merchants can optimize their last mile delivery management. Request your Alice POS demo to discover the power of this tool for your store![dub_vc_book_demo]