2022 has brought over new demands for last mile delivery. With the increase in the trend for ordering online, customer demands have also increased in the same manner. This includes everything from contactless deliveries, increased transparency, same day deliveries, constant updates, flexible delivery options, sustainable deliveries, and a lot more. If companies fail to keep up with these trends in last mile delivery – they are bound for failure. 

What is last mile delivery?

Last mile delivery is considered to be the last step or the last leg of delivery operations. It is the journey of a delivery package from the warehouse to the customer. It is a very important step of the delivery journey because the customer is directly involved in this process. All kinds of issues that can occur in this process can result in decreased customer sentiments and low morale. Moreover, if not managed properly, last mile delivery can also be very expensive, and can result in a financial burden for the company. 

What are the different issues that can be faced when managing last mile deliveries?

Here are some of the most common challenges that companies can face when they try to manage last mile deliveries ih-house:

• Inability to deliver on time
• Increasing contribution towards environmental pollution
• Poor logisitcs visibility
• Lack of updates
• Inability to make the process transparent
• Decreasing customer experience
• High financial costs

A last mile delivery management software can help resolve these issues and make the delivery process much more efficient. You can read more about how last mile delivery costs can be reduced with the help of Shipox, here. 

What are the last mile delivery trends for 2022?

Last mile deliveries have been a key focal point for many companies. These trends are important to consider when making changes to the delivery operations in 2022 and beyond:

Real-time Visibility

Research reveals that more than 56% of the people who place online orders expect that the delivery process would be transparent and they would be able to keep track of their parcel. Customers feel secure and develop trust in the brand when they are able to locat where their parcel is, how far it is from arrival, and what the expected time of arrival would be. This helps them stay prepared to receive it. 

Sustainable Delivery Operations

More than 31% of respondents to a survey claimed that they were willing to pay more money in return for availing sustainable and eco-friendly deliveries. Last mile deliveries can be made green in many ways. Companies like Amazon are already looking up ways to reduce the toxicity of exhaust fumes from vehicles, and make the last mile delivery process less harmful to the environment. 

AI for Efficient Deliveries

Artifical intelligence has improved a plethora of different aspects of our lives. It is expected to do the same of last mile deliveries. The use of drones for pizza delivery is already under testing, and will be adopted by other delivery companies. After some work is done to eliminate possible loopholes and hazards, drone deliveries will be the trend. Amazon is investing in an automatic driving vehicle that can efficiently deliver orders as well. 

Rapid Order Fulfillment

This has always been a trend, but it is now becoming the most important one. Same day deliveries need to be made as efficient as possible. Customers do not appreciate even minor delays. A complete logistics management software has all the tools and features that are necessary to cater to such demands. 

Shipox is a data-driven Last Mile Delivery Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. To learn more, you can sign up for a quick demo here.

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What is last mile delivery

Last mile delivery is also known as last mile logistics. It is the process or the journey in which goods are transported from the distribution hub to the final destination. The main aim and goal of last mile delivery is to deliver these packages with accuracy, affordability, and efficiency.

Why is last mile delivery expensive?

For many companies, last mile deliveries are expensive. Recent studies show that the average cost per last mile delivery incurred to organizations in 2018 was USD 10, in an estimated last mile delivery market size of $30.2B. One of the main reasons for this is that last mile deliveries can be inefficient, and can be delayed, especially when there are same day delivery demands. They can be a burden due to the cost of managing the deliveries when they are delayed. Moreover, there can be many stops along the way or the delivery routes can be very long, which can be a burden on the costs due to the high fuel consumption. There are also many chances of failed deliveries. A generally single failed delivery costs $17.78, and approximately more than 5% of all last mile deliveries fail due to a plethora of reasons. 

How to reduce the costs of last mile delivery?

Using a delivery management software with the right features that are customized for a last mile delivery can help optimize and reduce the costs that are involved in the process. Here are the different ways in which this can be done:

Route Optimization

Route optimization feature is really helpful in helping reduce the costs linked to last mile deliveries in many ways. First of all, they can reduce the costs related to fuel consumption and the long travel times and routes. It can help save inefficient and late or delayed deliveries, and therefore reduce the costs linked to it. It is reported that route optimization can help make deliveries become more than 60% efficient.

Real Time Tracking

Real time tracking is also known as rela time visibility. One of the financial costs or burdens related to last mile deliveries is due to failed deliveries due to lost items or misplaced items. Real time visibility can help keep track of the parcels all the way to the last stp so that any misplacement or loss along the way can be mitigated and dealt with.

Increasing Fleet Visibility

Fleet visibility is important because it can help keep you connected with the fleet and informed about there whereabouts and the location or status of the fleet. Increasing fleet visibility can help increase accountability and keep the fleet operations efficient and profitable.

Enhancing Customer Engagement

Customer engagement and keeping them in the loop regarding the delivery location can help reduce the rate of returned deliveries because of customers not being aware of when the parcel would arrive, and the likes of that. 

Encouraging Business Analytics 

Business analytics help create the best reports about business operations that can help you realize why your last mile delivery costs are up, the loopholes in that process, and how to reduce the last mile delivery costs. Business analytics can make the cost of last mile deliveries optimized.

Shipox is a data-driven Food Delivery Management Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. To learn more, you can sign up for a quick demo here.

The post Quick Guide To Optimizing Your Last Mile Delivery Costs appeared first on Shipox.

However, proof of delivery also plays a vital role in improving the last-mile delivery experience. Here are some reasons why:

Prevention of Delivery Related Disputes

One of the things that can go wrong with the delivery process is disputes arising with customers regarding the delivery of orders. Often, issues arise when customers claim that the order is delayed or not delivered so far. On the other hand, drivers may also claim that the customer has falsely reported that the delivery has not been made or has been delayed. This is troublesome for both drivers, vendors, and customers as well. Proof of delivery ensures that the reality is recorded and the endpoint of the order cycle is made transparent to all parties so that any confusion or disputes are resolved. 

Reduction in Chances of Fraud or Theft

Fraud in deliveries can be performed by either party. With proof of delivery, drivers can not make false claims of completing a delivery process. Similarly, customers can not make false allegations of unreceived deliveries, or that they have already made a payment. Drivers can not claim that they had not received the payment from the customer’s end and get away with financial fraud. Delivery management systems such as Shipox require customers to make an electronic signature or some other form of proof of delivery which ensures that the entire delivery process is completed with transparency and accountability. 

Elimination of Unnecessary Paperwork

Paperwork acts as an added burden on the delivery person and also the recipient. It is difficult to keep a record of such lengthy paperwork and it makes the delivery process tedious. With technological advancement, things are made easy and customers can electronically confirm the completion of delivery. This is a more reliable and efficient way of completing the order cycle.

Increment in Customer Satisfaction

With the elimination of potential fraud, unnecessary paperwork, and an increase in efficiency, customers are more satisfied with the delivery process. Proof of delivery increases trust in your delivery service as your order cycle is more reliable and inclusive when compared to others.

Shipox is a data-driven Delivery Management Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. It can help to increase the rate of first day delivery success. To learn more, you can sign up for a quick demo here.

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