Last mile delivery is the last stage of delivery, which refers to the shipment of product from the warehouse to the doorstep of the customer. Last-mile delivery incurs more than 30% of the delivery cost & that makes it the most expensive & complicated process in the whole delivery system. It includes several hidden costs with its challenges, transparency issues with technological problems.
Despite having several challenges last-mile delivery is the most important step in the delivery system, otherwise, it would not have been possible for eCommerce companies to deliver fragile items, perishable goods on the same day they are demanded.
We will discuss in this article why last-mile delivery matters the most for eCommerce despite having several constraints.
Why Does Last Mile Delivery Matter The Most?
The importance of last mile logistics is increasing every day in this era. People want the delivery of products on the same day they place the orders. This has caused a rise in the importance of the last mile delivery near an urban area. To deliver the products in a hassle-free manner, the eCommerce companies are now relying on the last mile logistics. We will discuss the importance of last-mile delivery.
To deliver to the right location
Not only the people of metropolitan cities but also the people of urban & rural areas will want their products to be delivered in their location. And it is quite difficult to track the location when delivery partners keep on delivering the products across states & cities. Since they are not local people, it takes so much time for them to deliver the product by tracking the right location. If eCommerce focuses on last-mile logistics it will be easier for them to deliver the products in the right location with the help of a resident. So, to get the products on time, it is important for eCommerce as well as the customers to avail of last-mile logistics.
To avail a larger area to store products
To deliver the right product in the right location on time is a big challenge for the eCommerce players. It is impossible to keep millions of products under one roof, searching for them when orders get placed. If the eCommerce avail warehouse logistics, it is easier for them to avail a larger area to store products. They also know the customer base with the base of the demanded product. They can easily sort out the products & store those in warehouses located in the various urban area. In this way, it will be helpful for them to deliver the products on the same day they get placed.
Lesser variable cost
In the case of last-mile delivery, the fixed cost is higher but the variable cost decreases with the volume of business. Since the eCommerce company needs to set up a warehouse in every possible location to cater to the needs of the customers live in the remotest location. This leads to hire permanent staff, hire vehicle, and give rent to the place it is situated in. This is like a one-time investment, after that period gets over, the variable costs decrease. That eventually raise the profit for the eCommerce by generating more revenue.
Increasing cross-dock capacity
Customers like to receive their foods & beverages that are healthy to consume, are from spillage, & are not contaminated by any external factor. To face the challenges that are faced by the food & beverage industry, last-mile logistics is the most important to e-commerce companies these days. Cross-docking refers to receiving the good from one door & ship it to another destination without any delay. The perishable & consumable foods that cannot be stored for long can be delivered to their destination in a hassle-free manner with the help of last-mile logistics.
Efficiency optimization is the most important motto of e-commerce sites through last-mile delivery logistics. Last-mile logistics make employees efficient because it helps to save a lot of time for them. It is one of the prime factors for the eCommerce to put details of the customers without any error while packaging. Last-mile logistics take care of the minute mistake done by the eCommerce partner since it still can deliver products by tracking location. It is easier for the residents of the urban or rural area to deliver the products to their hometown or to where they live.
In this age when people are relying more on e-shopping, it has become more important for the eCommerce players to have a satisfied customer base to remain in the game for a long time. And this is only possible if they give importance to the last mile logistics so that the products can easily be delivered on time in the right location.