What Is Last-Mile Logistics?

What is Last Mile Logistics

The process of delivering goods to the user is divided into multiple sections. Each is equally important as far as quality service is concerned. However, the process of reaching the finished goods from the retailer/distributor to the user is surprisingly the most time-consuming, complicated and important one. It is frequently the one that a customer will base their review of the complete service upon. This is the Last-Mile. This segment is universally identified in the field of current logistics as the driving force of growth and profitability.

Last-Mile Delivery is sometimes misleading because unlike its literal meaning, it is not restricted to the 1-mile radius around the consumer’s location but it can span over 50-100 miles. In logistics, it is merely that last stage of the delivery process, irrespective of its distance.

Kuuka has a range of customised on-demand last-mile delivery solutions to fulfil all kinds of everyday needs. Explore Kuuka’s services here.

What is the importance of Last-Mile Delivery Logistics?

Think of what you feel when you get your order within 1 day. Now, think of how you feel when it gets there after 7 or more days. Most likely, this number will play a significant role when you are referring to an online shopping portal or an eCommerce platform to a friend.

Low attention spans and the craze of getting things instantly, whichever it is, leading companies such as Amazon have perfected their last-mile strategies. However, for small-and-medium-sized businesses as well as budding start-ups, last-mile logistics continue being a hurdle that not just costs them time and popularity but money as well.

What do Customers look for in the last-mile?

Customer demand and expectations have sky-rocketed over the past few years and same-day deliveries have become the unwavering normal. Since this is the only stage of delivery where the brand physically meets the customer and hence, it is the stage that can make or break a brand's reputation.

These are the factors that customers look for in a positive delivery experience:

  • Speed
  • Accurate tracking
  • Security
  • Convenience

In the wake of the Covid-19 pandemic, last-mile logistic technology has enabled companies to rise up to meet the overnight growing demands of doorstep drop-off and contactless deliveries, meeting customer expectations diligently.

In the age of getting things done instantly, Kuuka keeps up by providing its customers with the quickest last-mile delivery possible. Read more about our same-day delivery service here.

Where do businesses fall short?

Cost:

Last-Mile Delivery is extremely costly. Consumers want their goods delivered with either zero or minimal shipping costs. Many customers make their purchasing decisions based on the shipping fee and businesses need to bear that in mind too.

Optimizing shipping costs to maintain their ROI is one of the biggest challenges in last-mile logistics.

Transparency:

Customers expect and rely on timely updates on their orders. Lack of transparency and poor communication can spoil the customer experience and have a direct consequence on a business’ popularity. Lack of real-time updates can lead to another challenge of the last-mile logistics, i.e. frustrated customers become hesitant to buy from the same brand next time because of poor transparency even if the product delivered is practically perfect.

Failed or Damaged Delivery:

There are too many factors stacked against the last-mile. Most of these factors are uncontrollable as well as unpredictable such as road closures, traffic jams, last-minute maintenance issues and more. Throughout this process, orders are liable to be misplaced or damaged making it a serious as well as a critical issue which can result in more dissatisfied customers.

Efficiency:

Peak demand can pose as a critical hurdle for many businesses. With a limited work-force and often times due to lack of proper technology, increased demands can prove to be difficult for retailers and e-commerces to fulfil deliveries on time.

How can these challenges be overcome?

Technology:

Last-Mile Technologies can drastically improve the delivery experience and help tackle failures along the way. They also help avoid any reputational damage because of these setbacks.

They do this using features like real-time route optimization which counter traffic factors with alternate routes and increase efficiency by integrating new orders into existing delivery schedules. It also makes real-time tracking possible enabling transparency for the customers. Other features like Electronic proof of delivery, automated sorting and allocating help make the process smoother and eliminate errors along the way.

Efficient Last-Mile Delivery Solution provider:

If you are a start-up or a small-and-medium-sized retailer who is new to e-commerce, investing in a last-mile logistic technology might not be budget-friendly. Or you may not have enough technically-skilled resources to deploy in handling, managing and maintaining a dedicated department.

In that case, you can opt to partner with a third-party logistics company who will outsource their technical expertise for your benefit. This cuts down on the cost of investing into a complete technology upgrade, maintaining and troubleshooting glitches or errors and on hiring the personnel required to man the system.

Kuuka is a new-age on-demand last-mile delivery service for all purposes. We offer peer-to-peer delivery solutions, as well as partner with businesses to design customised solutions best suited to their demands and requirements. To know more, contact us and we will get in touch with you to help you create a last-mile solution that takes all your needs into consideration.