Last Mile Delivery

The last part of the way a product or package must travel is also known as Last Mile Delivery. This is one of the most important steps in the supply chain. This is because it is extremely important that an order arrives properly to the consumer. In addition, it is also the step that costs the most money at this stage of the supply chain.

Consumers are unaware of the complex process involved in delivering a package. The order is placed with the retailer. But the responsibility of delivery lies with the package delivery company. The package deliverer is directly responsible for Last Mile Delivery. They contribute to the overall customer experience. It is their responsibility to deliver the order in the best possible way for good Last Mile Delivery.

The Importance of Last Mile Delivery 

With the convenience and amount of choice in online shopping, consumers also want smooth delivery. The control people want to have over the journey the package takes is higher than ever. Therefore, it is not surprising that this logistics component costs a lot of money. Last Mile Delivery accounts for about 30% of the total cost. The cost picture includes warehousing, technology, fulfillment with vehicle, gasoline, and labor costs. By getting these costs in order, we can look at how this cost can be reduced.

• Warehousing: quantity of storage areas and their locations
• Technology: How to map the supply chain. From procurement, warehousing, ordering to Last Mile Delivery of products
• Fullfillment: The packaging, quantity of order and order fulfillment
• Last Mile Delivery: what is the delivery time, are the packages handled properly and what is the size of the orders

A retailer using independent parcel delivery services such as PostNL or DHL is still responsible for delivery to the customer. The cost of vehicles and gasoline does fall on the delivery services. When a retailer itself has several physical stores, it is smart to use a Ship from Store system. This makes shipping and distributing products significantly cheaper, faster and more customer-friendly. As a business, it is important to look for the cheapest and friendliest method of delivery. Since poor Last Mile Delivery can cause high costs and dissatisfied customers.