August 18, 2022
10 min

How to overcome the Last mile logistic challenges with technology?


Have you ever thought about what it may cost your company if you tried to improve customer service without considering logistics? Unfortunately, most companies don't appear to care about mastering last-mile logistics. As a result, even a very little shift in consumer preferences might spell disaster for a company. In 2021, the last mile delivery industry was worth $131.5 billion; by 2031, that number is expected to increase to $288.9 billion, according to a compound annual growth rate (CAGR) of 8.13% between 2022 and 2031.

The importance of planning for the last mile of a delivery's journey is often overlooked. Let's explain what "last-mile logistics" is and the difficulties that come with it. What significance does this have for online stores and shipping enterprises? When it comes to the last mile of delivery, how is technology helping things go along so quickly? Here, you will learn how to utilize technology for last-mile logistics to make the best decisions for your business.

What is Last Mile Logistics?

The term "last mile logistics" describes a company's operating capacities (such as its buildings, computers, delivery vehicles, employees, etc.). The final result of this intricate system of operations is to let businesses provide their customers with the most pleasing last-mile delivery experience possible, from when they place an order until they receive the product they paid for.

As a crucial part of the e-commerce and omnichannel supply chain, last-mile logistics help businesses deliver more items to customers quickly and affordably. Customers are ready to pay more for expedited services in the last mile of purchase, such as same-day or immediate delivery. It is expected that by 2030, the demand will increase to $ 350 billion. The need for last-mile shipping services will likely rise as India's e-commerce business expands to US$ 111 billion by 2024 and US$ 200 billion by 2026.

What are the common challenges in last-mile logistics?

Here are some common hurdles of last mile logistics-

  • Not Being Up-Front- Customers want to know when they can expect their order to arrive and where it is in the supply chain. Therefore, being seen is the essential factor in establishing trustworthiness.
  • Costs astronomically high during transport- Retailers and logistics providers face a tricky balancing act when trying to maximize customer satisfaction while maintaining a healthy bottom line. The last mile accounts for 28% of the total delivery price. An inadequate system for ensuring timely product delivery is a significant contributor. Delivering costs are also heavily influenced by unsuccessful efforts, lengthy routes, driver salaries, and fleet operations.
  • Fluctuating Factors- One thing is sure about last-mile delivery: it will be unexpected. It is impossible to prevent all last-mile issues, such as traffic, bad weather, and flat tires.
  • Poor Route Planning- You may find the process of planning out your transportation to be frustrating and taxing on your mind. Fuel economy and pollution controls are two of many variables. However, one of the primary causes of delivery delays is careless route planning.

These problems are well-known. But is there any solution? The answer is Yes. Using technology, you can smooth these bottlenecks.

How to overcome the Last mile logistic challenges with technology?

Retailers, eCommerce providers, 3PLs, and manufacturers may all benefit from the ability to better organize, manage, and improve their end-to-end logistics operations with the help of last-mile delivery solutions.

Successful logistics providers use all the tools to ensure a smooth last mile. Technology combined with analytics may improve your delivery process, including real-time driver monitoring and communication, efficient fleet management tools, and intelligent dispatch planning.

Here is how technology helps you-

  • Timely Delivery with Dynamic Routing- Determining the best route to go there within a certain amount of time is daunting for any motorist. Forward-thinking companies rely on cutting-edge, dynamic routing systems to guarantee timely delivery, increased profits, and satisfied customers. Logistics managers may monitor their executives and fleet in real-time with dynamic routing. It might suggest the most reasonable paths for sending packages.
  • Trip Count increase- Technology is a boon for businesses as it drastically improves the number of daily trips. The technology allows you to track your vehicle in real-time. You can point out the loopholes in the process and solve them. Utilizing your vehicles properly, you can increase the productivity of the entire process.  
  • End-to-end Management of Distribution Procedures- The success or failure of the last stretch of delivery depends on how the process can be seen on the ground. When a consumer puts an order, a company may benefit from having complete insight into their logistical processes using current logistics technology. With real-time visibility into operations, logistics managers can correct discrepancies as they arise.
  • Proof of Delivery (PoD) for improved efficiency and openness- The whole last-mile delivery system benefits from the increased transparency that proof of delivery provides. Proof of delivery (PoD) is a short document that includes the recipient's signature, a time and date stamp, a photograph of the delivered item, and other data to verify that the item has been delivered. Taking this one little action may make the whole shipping procedure more user-friendly.
  • Measure Key Performance Indicators- Businesses can increase their adherence to service level agreements (SLAs) and key performance indicators (KPIs) by using a state-of-the-art logistics platform. Critical delivery metrics such as organizational performance, customer ratings, ETA adherence, pending deliveries, 3PL performance, and more can be seen by logistics stakeholders via a consolidated dashboard. To prevent a crisis from escalating further, reporting makes it simpler to locate the source of the bottleneck and take corrective action. Follow critical KPIs like completion rates, response times, customer satisfaction ratings, travel distances, etc., with detailed data to identify areas for improvement. Last-mile supply chain optimization is a crucial component of lean operations.
  • Saves time and costs- Transportation and logistics management will benefit significantly from using routing software. It makes good use of available resources and keeps last-mile expenditures under control. Your routes will be planned, jobs will be divided among your drivers, and the program will track their whereabouts. It helps minimize inefficiencies by saving time and reducing the number of drivers. Last-mile delivery expenses may quickly add up, but with the dispatch automation option, the procedure is simplified, and costs are kept to a minimum.

But why Traqo?

As the demand for last-mile solutions is rising, many companies are providing this service. But why should you choose Traqo over anyone else?

Traqo has some unique features that help its users overcome the challenges with last-mile deliveries and improve their entire supply chain.

  • Hybrid Tracking

Tracking may seem like a no-brainer solution to improve visibility and transparency in the process. But what if your drivers are working in a remote area with an internet connection? Sounds like a nightmare? We got you covered. That's why Traqo introduces Hybrid Tracking- both app-based and SIM-based Tracking in one solution.

  • Simple Procedure

Tracking the vehicles, managing the invoices, and other procedures- everything can make you feel overwhelmed. Traqo solves this problem. It is user-friendly as it is built on Users' feedback.

  • Organize and centralize your Data

With Traqo's Last mile solution, you can keep the data like invoices, vehicle, and trip records in one place. In addition, you can save a tab on every Data anytime from the dashboard.

Are you ready to try Traqo?

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