Finding ways to improve efficiency is the only way for your business to keep up with the pace of today’s delivery standards. More than half of shipping costs come down to last mile deliveries which can lead to a significant decline in profits, if you don’t try to optimise your deliveries.
Understanding the concerns and costs of last mile deliveries will benefit your business operations and save you money.
Businesses need to keep up with changes in consumer behaviour and match their rapid nature.
A recent study conducted by Zoom2u has shown that 71% customers are more likely to purchase goods knowing they’ll arrive on the same day. They are also less likely to continue with their order should free shipping not be included.
This leaves companies to dip into their profit margins to cover the cost of shipping.
Last Mile Delivery Costs & Concerns
1. Cost Of Drivers
It’s incredibly difficult to find drivers, let alone good drivers, so getting the most out of your current team is a must to save your business time and money.
That being said, the more delivery standards change to accommodate the rapid increase in ecommerce sales, the more efficient you need to make your team, especially if numbers are few.
By making route planning easier for drivers, you’ll attract more potential drivers to join your business.
2. Failed Or Delayed Deliveries
The time of delivery is a promise to customers and if there are extended delays, their trust can be dangerously compromised.
Dissatisfied customers will refuse to use your services in the future and look elsewhere, because there are plenty of options who can offer the same service more reliably. If a delivery has failed, this forces drivers to return to that stop on their route, increasing delivery costs and ultimately wasting time.
Delivering on time is the standard and anything falling short will greatly frustrate the customer.
3. Inefficiency Of Last Mile Delivery
The increase in ecommerce has seen a significant increase in deliveries. Businesses are struggling to keep up with the new volume of demand from customers.
Struggling to keep up with demand can lead to more delays, missed deliveries and other issues that make last mile delivery more inefficient. When it comes to rural areas, delivery stops might be spread apart with only a few items being delivered at each location.
There also isn’t an obvious path for the journey which makes stops difficult to reach for drivers. Whilst stops within a city may be close together there could be significant traffic delays, especially in peak hour.
This wastes fuel due to constant idling, costing your business more. It also leads to urgent deliveries being delayed and customers being exceedingly frustrated with the service they’ve been given.
Ways To Reduce Last Mile Delivery Costs & Concerns
Reducing last mile delivery costs and concerns is essential to make sure your business is keeping up with the challenging nature of consumers.
That means offering more delivery options, optimising routes to save your team time and money, as well as proof of delivery and customer updates.
These are all necessary measures that improve communication and visibility, helping you keep in competition with other businesses.
1. More Delivery Options
Accommodating customers is key to running your business as you should always be trying to meet their needs.
Whilst same-day-delivery may seem like the best option, it isn’t always suitable for customers and their schedules. Only having standard and same day delivery as options is very restrictive because customers might be unable to wait a week for their order, but also won’t be home for same day services.
It’s more about the convenient time window rather than being delivered on the day. Giving more delivery options, such as express and the ability to pick a certain date and time, is a great way to accommodate those with restrictive schedules.
This will help your business appear as the better option as the more you accommodate your customers the more likely they’ll use your services rather than another company’s.
2. Route Optimisation
Route optimisation helps you speed up your route planning by simply putting all your stops in, and letting the software find the most efficient route for your team. You can even add in ad hoc deliveries that can be slotted into the plan where they are best suited.
This eliminates the stress of planning last minute orders and is flexible to suit any changes in your schedule.
It increases the productivity of your business whilst saving you hours in organising bookings. With less time spent on the road you can cut down on fuel costs and save your business money and time.
3. Proof of Delivery
Proof of delivery allows your team to account for the success of a delivery through digital picture confirmation and e-signatures. This way customers can see where their order is stored and who signed for it.
It’s a great way to keep track of every completed delivery and if an error occurs, your team can obtain past records to resolve the issue at hand.
This keeps your business organised and any possible customer complaints will be dealt with quickly because you’ll have access to the exact time and date their order was delivered with proof.
4. Customer Updates
Customers want to be involved throughout the process, especially when it comes to goods they’ve purchased.
Customer updates are the perfect way to keep your customer updated throughout the day. This visibility allows them to see the driver’s location and how far along they are on their journey. This lets them plan their day around the delivery without any major disruptions to their schedule.
It’s a great way to build trust between you and your customer whilst giving them the best experience so that they are willing to use your services in the future.
5. Real-Time Tracking
Determining your last mile deliveries requires the ability to look through and analyse the data.
Real-time tracking lets you trust your team as you’ll be able to monitor their whereabouts throughout their entire journey. This visibility helps you give accurate ETA’s for your customers and allows you to give new jobs to your drivers.
It also gives you insight into how productive your team members are, as you can see how long they’ve spent at certain locations and whether they are following the correct route.
Having that transparency gives you peace of mind in knowing the work is being done successfully, increasing your business’ productivity.
Using Locate2u For Last Mile Deliveries
Reducing last mile delivery costs can be made possible by investing in technology that specialises in optimising routes for your drivers, real-time tracking, proof of delivery and customer updates.
By using Locate2u, your business can access all these benefits, from saving money to increasing efficiency when it comes to last mile deliveries.