How to Decrease Your Last Mile Delivery Costs
Last mile logistics has always been considered a problem in the fulfillment industry. For many companies, it's a necessary evil for their operations, as it may be the only way for them to reach customers at the speed and reliability that they expect. However, there are alternatives to these typical last-mile headaches that supply chain logistics and operations managers can tap into for their company that will avoid the high costs and frustrations associated with the last mile, but will still meet the speed and reliability that customers expect.
The Last Mile
Last mile delivery is quickly becoming a focus in the retail and e-Commerce industries, since it’s a highly relevant way to give consumers the convenience that they demand. If you’ve ever gotten something delivered online, the last mile is the final stage of your delivery before it’s dropped off at your home. Optimizing this stage of the delivery process is difficult and often requires logistics managers to oversee and plan - making it the most expensive part of shipping for retailers and online sellers.
However, there are new innovations in logistics and supply chain technology that allow companies to make the process more efficient without losing on convenience or customer service at each drop-off. With the dominance of online shopping, solving the last mile problem has been an important part of logistics in the retail industry in 2020.
Emma Cosgrove from Supply Chain Dive says, “the growth in both drivers on the road and dollars invested in crowd-sourced delivery solutions such as Deliv, Roadie and Instacart demonstrate retailers see the value in outsourcing last-mile deliveries in order to fast-track omnichannel growth.”
So, what are some of these innovations and solutions? There are certain tactics that companies can tap into to fix the problem, but there are also specific tools and technologies that can directly decrease costs and maximize efficiency.
Batching is an old-school tactic in logistics that still remains to be the most clear way to optimize last mile costs without losing much efficiency. It’s the process where multiple products fit into a higher volume of deliveries, thus maximizing efficiency. The packages or products are organized and consolidated by destination and timing so that one driver can deliver an entire batch on one route.
This process is essential for protecting and expanding profit margins. If you’re a retailer handling your own deliveries, this method is critical to your operations. It should be a base-line for expanding your supply chain efficiency tactics. However, if you don't want to deal with the hassle of managing batching and routing of your drivers, there are other options to solving your last-mile problems.
Out-Sourced Local Couriers
The biggest change that has seen exponential growth since the start of COVID-19 and before is the out-sourcing of last mile delivery through external courier services. Through local delivery, businesses can utilize their warehouses or stores in certain areas, hiring an out-sourced local courier to perform the deliveries.
OneVim has an easy way to handle this without causing any inefficient hiccups on your end. You can just simply download the app to get started. You'll enter the pickup and drop-off location and schedule the deliver for either ASAP or a future time, then we handle the rest. Our drivers have an app that will notify them to accept the delivery, and we'll have it sent out immediately.
And, with OneVim, you'll have consistency in drivers. Relationships with our users are important, so we like to assign specific drivers to each company, that way you'll have direct contact and get to know each of them that are handling your orders.
Retail owners can now utilize the Buy Online, Pick-Up in Store (BOPIS) system that is becoming essential for companies with brick and mortar stores for their delivery needs as well. It would be a similar system to the pick-up-in-store model, but would send a driver to deliver it to the customer, so that they don’t have to leave their home.
Through this system, you can reach your customers instantly, fulfilling their growing expectations of convenience and speed. You’ll also maximize costs by only paying a local courier to perform the delivery. This local delivery model is the new form of last mile delivery, but without the headache and logistical frustrations. By streamlining your inventory from the store to the customer’s door, you save time and money, solving the last mile problem. This new innovation is better for your business and the customer.
The OneVim app works perfectly with this system, as you can use our app to schedule the delivery from your brick and mortar store as soon as the order comes in from the website. Your staff will collect the item from the shelf, and our driver will pick it up and delivery it directly to the customer. It's that easy!