One of the many challenges facing businesses in the twenty-first century is the rise of new (and higher) customer expectations around product delivery. Most businesses are painfully aware that customers want fast and free delivery, but what many companies fail to realize is the opportunity they have to optimize the final stages of product delivery. This part of the journey is called “final mile delivery” or “last mile delivery,” and it’s also one of the more challenging stages to optimize.
When customer orders are delayed in the final stages, customers are not going to be happy about it. They’ll be even less happy if they don’t even know why it’s not showing up when expected. When this happens, it taints the entire customer experience, whether they’re happy with the product or not, which means you risk losing the customer for any future purchases. The good news, however, is that there are plenty of ways to ensure that final mile delivery goes smoothly, resulting in a happy customer who is much more likely to become a repeat customer. It’s all about speed, efficiency, transparency, and personalization. In this post, we’re sharing eight essential final mile delivery tips that will impress your customers and boost your brand’s reputation as dependable.
The Evolution of Final Mile Delivery
While the terms “last mile” and “final mile” are used in a variety of industries, including telecommunications and passenger transportation, the place where it’s talked about the most these days is in supply chain management as it pertains to getting parcels of products delivered to individual customers.
It’s easy to efficiently transport parcels to a central hub via train, ship, truck, and so on, but the real challenge comes in that last leg of the journey to individual customers since the parcels must be loaded into smaller vehicles. Final mile delivery ends up being the most expensive part of the business-to-customer (b2c) delivery chain, comprising up to 53% of the total cost to move goods!
The most common final mile delivery carriers have traditionally been the US Postal Service, FedEx, UPS, and DHL. Then along came retail juggernaut Amazon, which needed to figure out a way to meet its huge final mile delivery needs. What it did in 2018 was develop a comprehensive logistics network by employing thousands of last-mile delivery vehicles. Many new companies have sprung up to help fill final mile delivery gaps, essentially serving as Uber-like networks of on-demand drivers for deliveries (think DoorDash for takeout food, InstaCart for groceries, and so on). This is a result of the rise of e-commerce, which skyrocketed during the COVID-19 pandemic. With the rise of e-commerce has also come higher customer expectations for final mile delivery. People want and often demand free delivery, but they also want their deliveries to happen as quickly as possible, including same-day delivery.
Since most businesses are not large enough to develop their own final-mile delivery infrastructure like Amazon has, they must find the right third-party logistics partner to handle that piece of the puzzle for them.
Optimizing the Final Mile Experience
All of this begs this question: How can you (or your 3PL partner) optimize the final mile experience for customers to keep them happy and loyal to your brand? Here are our best final mile delivery tips with an eye toward impressing your customers:
Route Optimization: The mapping out of delivery routes has become a whole art and science of its own, and it’s aimed squarely at achieving greater efficiency as a way to reduce transit times (faster deliveries) and decrease operational costs. Some key tools to achieve this include smart route planning software, such as real-time GPS tracking integration for avoiding congestion to speed up delivery and reduce fuel consumption, as well as AI and machine-learning software and platforms such as Google Maps API and Mapbox that can be integrated with custom route planners. The tie-in to customer satisfaction here is overall faster deliveries.
Real-Time Tracking and Communication: Increasingly, customers expect to be kept up-to-date on delivery statuses. By now, most people are familiar with the standard delivery tracking services through all the big carriers, but customers want even more communication about the location of their expected deliveries in the process. The way to achieve this is through tools like text alerts and interactive tracking. With dynamic routing and rescheduling, customers can change delivery windows or locations on the fly. This kind of enhanced visibility improves communication, reduces inquiries about delayed packages, and ensures smoother operations during final mile delivery, thereby boosting the overall delivery experience.
Personalizing the Delivery Experience with Customer-Centric Approaches: Think of this as going the “extra mile” in final mile delivery with options such as “white glove” or concierge-style services for high-value items. This can include unboxing, assembly/installation/placement (in room of choice), returns handling, packaging disposal, and haul-away services, all of which add value for large, fragile, or premium shipments. Customer-centric services like these open up the possibility for something as mundane as package delivery to be transformed into an opportunity to truly delight the customer, which can only boost satisfaction and loyalty.
Cost Management Strategies: The key here is to find the right balance between speed and efficiency. Customers expect ever-faster deliveries, and you’ll have to figure out to what extent you can meet those expectations without overextending your budget. Additional practical measures you can take include automated scheduling, consolidated deliveries, and strategic carrier relationships. Because carrier pricing is in constant flux, you need to continuously monitor multiple carriers to quickly shift to whichever one can meet your needed mix of speed, efficiency, and cost.
Technology and Automation: If you’re going to work with a 3PL partner for final mile delivery, be sure they have the automation and technologies needed to meet your needs, including AI-based route planning, delivery management software, and automated parcel sorting, all of which can go a long way toward increased efficiency and reducing errors. There should also be a strong commitment to continuous improvement through robust data analytics applied to delivery data, including on-time rates, returns, and delays.
Building Strong 3PL Partnerships: If most of these tips feel out of reach for your company, then your best bet is to find strong 3PL partners in the key geographic areas where you need top-notch final mile delivery services. The key criteria to keep in mind when vetting potential vendors include reliability, regional expertise, technology capabilities, and flexibility in meeting diverse business needs. We invite you to find out how Ranger3PL can be your go-to partner in the Midwest for supply chain optimization that will boost efficiency, free up internal resources, and streamline operations, including our final mile delivery services.
Ensuring Quality Control and Gathering Feedback: Returning once again to data analytics, it’s also important to do this for quality control purposes. Be sure to set relevant key performance indicators (KPIs) such as on-time delivery rate, cost-per-delivery, and customer satisfaction score. This data will show how you’re doing and where you can make improvements. Make sure you’re doing regular surveys and follow-ups to refine processes and address issues promptly.
Sustainability and Future Trends: Many consumers these days are concerned about the eco-impacts of shipping and delivery, so it’s worth pursuing and pointing out green initiatives, including eco-friendlier vehicles (including drones and autonomous vehicles), optimizing routes to cut emissions, sustainable packaging, and so on.
Ranger 3PL: Your Partner for Supply Chain Optimization throughout the Midwest
If your company doesn’t have a clearly articulated final mile delivery strategy and action plan, now is the time to develop those, or you run the risk of being left in the dust by competitors who are on top of their delivery game. When it comes to boosting customer satisfaction and brand loyalty, getting final mile delivery right can be a real difference maker that gives your company a clear competitive advantage. Following the tips outlined above will put you ahead of the curve.
Ranger3PL invites you to learn more about our supply chain optimization services from our strategic location in central Indiana. This location gives you access to multiple population centers in the Midwest, including Indianapolis, Cincinnati, Louisville, Chicago, and St. Louis. We are a full-service third-party logistics company offering warehousing in our 16 Facilities, inventory management, order fulfillment, transportation, final mile delivery, and more. Explore our website, and if you like what you see, reach out to us for tailored logistics solutions, additional resources, or to schedule a consultation to enhance your final mile delivery. Start the conversation through our contact page or call us directly at 812-522-6000. We look forward to meeting you!