As eCommerce continues to grow at an unprecedented pace, the “last or final mile problem” in transportation has become a critical challenge for operations directors and managers. The last mile refers to the final step in the delivery process, where goods are transported from a distribution hub to their final destination, often a customer’s doorstep. This stage is fraught with complexities that can significantly impact cost, efficiency, and customer satisfaction.
Understanding the last / final mile problem
The last mile problem encompasses several key challenges:
- Cost of last mile deliveries: This is often the most expensive part of the delivery journey, accounting for up to 53% of the total shipping cost. The complexity of delivering individual packages to multiple locations drives up costs significantly.
- Lack of transparency: Customers and managers alike often lack visibility into the delivery process, leading to uncertainties and reduced trust in the service.
- Poor granular tracking: Ineffective tracking systems can result in lost or misplaced packages, and a general lack of accountability.
- Failed deliveries: Missed deliveries due to recipient unavailability or incorrect addresses not only frustrate customers but also add to the operational costs.
- Inefficient routing and lack of route optimisation: Without optimised routes, delivery times increase, fuel costs rise, and overall efficiency plummets.
- Unpredictability in transit: Traffic, weather, and other unforeseen factors can cause delays that disrupt the delivery schedule.
- Lack of proper delivery infrastructure: Insufficient investment in infrastructure can lead to bottlenecks and inefficiencies in the delivery process.
- Outdated delivery tools and technologies: Many logistics systems still rely on outdated technology, which can be slow, unreliable, and incompatible with modern demands.
How singular systems address last mile challenges
Singular systems, which integrate various logistics functions into a unified platform, offer powerful solutions to these last mile challenges:
- Cost reduction through automation and efficiency: Singular systems streamline operations through automation, reducing the need for manual interventions. This leads to significant cost savings in labour, fuel, and time.
- Enhanced transparency and real-time tracking: Integrated systems provide real-time visibility into the delivery process for both managers and customers. Advanced tracking technologies ensure that every package’s location is known at all times, increasing transparency and trust.
- Granular tracking and data analytics: Singular systems offer detailed tracking capabilities, allowing for precise monitoring of each delivery. Data analytics can identify patterns and problem areas, enabling continuous improvement.
- Reduction in failed deliveries: By leveraging AI and machine learning, singular systems can predict and mitigate issues that lead to failed deliveries. Automated address verification and recipient notification systems help ensure successful deliveries.
- Optimised routing: Advanced algorithms in singular systems can calculate the most efficient delivery routes, taking into account real-time traffic data, weather conditions, and other variables. This reduces delivery times and operational costs.
- Predictability and reliability: Singular systems can adapt to real-time changes and provide accurate ETAs, enhancing reliability. Predictive analytics can forecast potential delays and allow for proactive adjustments.
- Improved delivery infrastructure: By centralising all logistics functions, singular systems optimize the use of existing infrastructure and highlight areas needing investment. This leads to more efficient and scalable operations.
- Modernised delivery tools and technologies: Singular systems incorporate the latest in logistics technology, from IoT devices to AI-driven analytics, ensuring that operations remain cutting-edge and competitive.
Conclusion
For eCommerce operations directors and managers, addressing the last mile problem is crucial for maintaining customer satisfaction and operational efficiency. Singular systems offer a comprehensive solution by integrating various logistics functions into a cohesive platform, tackling the myriad challenges of last-mile delivery head-on. By reducing costs, improving transparency, enhancing tracking, minimising failed deliveries, optimising routes, and modernising infrastructure, singular systems are the key to overcoming the last mile problem and driving eCommerce success.
