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Retail Business Review | Tuesday, September 27, 2022
Here are six trends companies are actively testing and executing to perfect the last-mile delivery process and keep up with consumer demands.
FREMONT, CA: Last mile delivery is the last step of the delivery process when a parcel is displaced from a transportation hub to its last destination, generally a personal residence or retail store.
Here are six trends companies are actively testing and executing to perfect the last-mile delivery process and keep up with consumer demands.
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1. Rapid order fulfillment
A growing number of consumers now expect on-demand or same-day delivery, meaning there’s more emphasis on logistics and fulfillment than ever.
Businesses today are required to turn orders around fast—sometimes faster than a lot of technology can keep up with.
2. Improved traceability
Old-school last-mile delivery carriers have enhanced their package traceability, adding features like proof of delivery and tracking information.
This is an important part of ensuring packages don’t get lost or figuring out where they are when they get lost. New smartphone apps have also modified the way we track packages, with some solutions such as Onfleet even highlighting GPS functionality, enabling people to monitor precisely where on the map their package is and how long the driver is from arriving at their home.
Also, with proof of delivery, data like whether or not a package was sealed for or where & when the package was left if nobody is home decreases disputes between carriers and customers and improves the overall last-mile delivery experience for both parties.
3. In-house delivery services
Many companies have started using their in-home delivery service—including e-commerce giant Amazon.
In-house delivery means a company has its fleet of delivery vehicles and salaried drivers to get shipments from their warehouses out to customers. This enables companies to control costs and customer experience and extend their delivery window, some even choosing to deliver late in the evenings and on weekends.
4. Micro warehousing
Take Amazon as an example again: the e-commerce company is increasingly using 58 transportation hubs in the US alone devoted to their Prime Now service for customers who want their orders delivered on the same day.
This has begun a trend of more and more organizations allocating or purchasing additional warehouse space dedicated to these extra-fast deliveries.
While many retail companies have reduced their delivery time to two days, Amazon is even in the lead, delivering parcels in as small as two hours. Therefore competitors have a ways to go.
5. Carrier upsells
Several e-commerce stores utilize data for recommending similar products to you when you’ve viewed or purchased something earlier from them to upsell you. In addition, this strategy is making its way down to last-mile delivery carriers, some of whom are now upselling products right at the door.
For example, suppose a consumer has ordered oral hygiene products every month for the past three months. In that case, the delivery driver could bring toothpaste along with their order and ask if they’re interested in purchasing it. If they’ve ordered many garden supplies, some grass seeds or fertilizer may be good upsell chances.
6. Smart technology
The various products being ordered online are increasing every day. Numerous consumers now order fresh and frozen foods online, or even livestock like plants and pet fish. These products must be shipped in certain conditions to maintain their integrity and well-being. Hence, many fulfillment centers have taken measures in their warehouses to control temperature, humidity levels, air quality, and more.
It also means more factors, like weather, are considered during route planning. For example, further packing materials may be required to account for temperature variations.
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