Last mile delivery
The last mile also referred to as final mile, is the place where the item is delivered from a local facility or warehouse to be delivered for its delivery to the client.
Warehouse
System
Route
Delivery
Final Mile
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What is last mile delivery?
It is the transportation of products or parcels from distribution (warehouse shelf) hub to the final delivery destination (the door of the customer). The last mile delivery logistics goal is to deliver packages as quickly, affordably and accurately as possible. A lot of the retailers are considering last mile delivery as main differentiator.
The first mile is the process of getting an item by the manufacturer.
Middle mile is a long-distance transport method that involves customs clearance ports, hub storage and loading, as well as in-inland transport. (For international orders none the steps listed above are needed.) The product is delivered to the final location before being loaded onto trucks to be shipped out.
The last mile also referred to as final mile, is the place where the item is delivered from a local facility or warehouse to be delivered for its delivery to the client.
How does last mile delivery works?
Each step of the supply chain process is important however, the final mile is where the biggest impact can be created for customers' experience. If a product is delivered damaged or late or never arrives in a timely manner specially for pharmaceuticals deliveries, there's a high possibility that the customer is likely to shop elsewhere next time. In essence, the this is where the company carries their values, their image and their commitment to the door of the customer.
Step 1
When the supplier or client receives order, our system will offer a wide range of options to choose the one that fits your needs. At the scheduled time, we will collect the order, transport it to the warehouse (hub), and from there to its final destination.
step 2
If the package is instant it will go directly to the customer but when they choose next day delivery the goods might go to the hub, where they will be scanned and register into our system until the order is ready for the final destination.
step 3
The next step is assigning the driver, vehicle and planning the delivery route. Before loading and dispatching, all of the goods will be double scanned to prevent and avoid any mistakes and update the shipment status.
step 4
Once your shipment is out, the client will be provided with a live tracking. He can track shipment location, and the driver’s contact details from the hub to the final destination.
step 5
Lastly, when the shipment reaches its final destination. The client signature is needed to update the system as proof of safe and successful delivery.
Last mile delivery tracking app and automatic customer notifications.
Oreem app uses GPS-tracking to keep track of the live location of drivers and packages with automated notifications with the real location of their delivery driver at that moment. This will eliminate customer service call about parcel location. Oreem app also ensures the driver will travel to the right addresses, at the right time, following the shortest route.
What is last mile delivery problem?
Last mile problem is while customers want delivery to be fast and free, but it is also the most costly and time-consuming component of the supply chain, accounting for up to 53% total shipping costs. Deliveries become more expensive when there is inefficiency.
The main problem with last mile delivery is the dropping of small packages to multiple stops in the same area to unique destination, which means drivers take more idle time, complex route and at the end more time on the road.
If you ever looked at a real time tracking online you can see that the driver is taking forever to reach your destination because drivers sometimes have to go through bad roads, find the location of different people, and contact them for
Transparency
The customers or buyers always want to know the location of their shipment and the approximate time of delivery. Therefore, exposure is the most substantial prerequisite to establish reliability. The majority of businesses offer track IDs of the plan that display the shipment standing of the product. Yet in a technology driven world, people aren't pleased with monitoring codes. They wish to examine every step of the last mile procedure even if the distribution gets on the same day.
High Delivery Charge
Retailers and logistic companies face a difficult task in providing a great experience for customers while still being profitable. 28% of all delivery costs come from the last mile. The main reason is the lack of infrastructure to deliver products on time. Additionally, failed delivery attempts and long routes, driver salaries, fleet operations, and other factors all have a significant impact on the delivery cost.
Out of control Elements
Last mile delivery is something we cannot predict. Last mile issues such as traffic, weather, and flat tires are all beyond our control. logistics companies cannot do seamless communications or create a plan B for delivering products quickly.
Poor Planning
Route planning can be really confusing and draining for beginners. It all relies upon factors such as fuel effectiveness and environmental regulations. Late deliveries are usually caused by inefficient route planning. Logistic companies can use route optimization tool to overcome this obstacle.
Last Mile Delivery FAQ
Some answers about the most common questions regarding last-mile delivery and related topics.
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Which industries deal with logistics last mile?
expand_moreLast mile logistics is a crucial part of any industry that sells products directly to consumers. This includes food delivery and e-commerce retailers.
Other relevant industries
- Third-party logistics (3PL), and mail carriers such as DHL, FedEx UPS, USPS
- Businesses for non-emergency medical transport (NEMT).
- Pharmacies
- Department stores
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What is the place for last mile delivery in the order process?
expand_moreThe last logistics step in an order is called the "last mile delivery". This happens after products are received, sorted, picked and packed, and then shipped to the distribution centers.
Last-mile delivery involves shipping products directly from delivery hubs to the customer's doorstep.
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What are the Last mile delivery challenges?
expand_moreThe main challenge is drivers have to carry a large amount of packages, and each package with unique destination, which means more stops, more complex routes and more time on the road. In order to maintain the quality of the delivery serves, a large fleet of delivery vehicles and drivers to ship a small number of products.
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What are the Stages?
expand_moreTraditional last-mile delivery consists of five steps
- The parcel is entered in a central digital system and assigned a tracking number. This number is used to track the sender as well as the receiver.
- The package arrives at the transport hub.
- Based on the final address, the order will be placed for delivery.
- The parcels are scanned as they are loaded onto the last mile delivery vehicles.
- The package is delivered and verified.
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What Is Last Mile Logistics Provider?
expand_moreBusinesses that provide last mile logistics services are those who offer local or regional delivery. Last mile logistic providers are also known by the name last mile carriers. These last mile logistics providers are examples of:
- CRST Transportation Company & Logistics Solutions
- FedEx Tracking and Shipping.
- Oreem Global Shipping & Logistics Services
- USPS Affordable Mailing and Shipping Services
- DHL Courier Services and Transportation
- Amazon Last Mile Delivery
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What is an example of last mile delivery?
expand_moreLast mile carriers usually have a fleet that delivers the product(s). Oreem is an example of a last mile carrier. They have increased their delivery speed and customer satisfaction to improve their last-mile efforts.
Last mile delivery market
The last mile delivery market is set to grow by USD 146.96 billion from 2021 to 2025, progressing at a compound annual growth rate (CAGR) of 15.06% as per the latest market report.
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