15 March 2022 The term last mile delivery refers to the movement of a product from the distribution center to the final recipient, that is, until it is delivered into the customer’s hands. It is the last phase of order fulfillment and has a significant impact on buyer satisfaction. With the growth of omnichannel, last mile delivery has gained even greater importance, pushing retailers to rethink their logistics operations and transport network to offer a unified and qualified shopping experience. The importance of last mile delivery lies precisely in the impression the company will leave on the customer. If they received good service and made the purchase easily, but received the product late or damaged, that is what they will remember. Any issue in the last mile can undermine a company’s reputation. And the problems don’t end there. Failures in the last mile can generate higher costs for the company, affecting profitability. That’s why this last phase of an order’s journey has become increasingly prioritized. Companies seek not only to optimize their internal processes but also to create good partnerships with delivery services. Balancing costs, speed, and quality is the central point of this process. The importance of last mile delivery lies precisely in the impression the company will leave on the customer. If they received good service and made the purchase easily, but received the product late or damaged, that is what they will remember. Any issue in the last mile can undermine a company’s reputation. Before making any changes, it is necessary to evaluate the current processes. For example, if complaints concern delivery delays, consider some possible causes, such as: – Your customers are requesting products that are not available in stock – Your company is growing too fast and cannot keep up with the increased demand – Your carriers do not prioritize your company – There are errors in internal warehouse processes or productivity is low – You have encountered system failures or are using outdated software – Bad weather, city traffic, and other unforeseen events that prevent any effective action to reverse the situation The reasons for not meeting delivery deadlines are not limited to those listed. There are other issues that can cause delays, hence the importance of a thorough investigation. And it is essential to conduct this analysis because if you notice that your company is not meeting deadlines, it is very likely that there will be a drop in sales. And you certainly don’t want that to happen. Currently, with the pandemic keeping people at home and Christmas approaching, a period of peak sales, prioritizing the last mile is crucial for the success of your business. Could you ask the question above at this moment? The answer may seem redundant, but you will understand afterward: start from the beginning. Right! Evaluate the first phase of your chain. If you work in a sector, you need to analyze how the production process is carried out. Small adjustments to optimize material handling and quality control can prevent errors and rework, which ultimately affect the last mile. If your company is in the retail or wholesale segment, for example, you need to evaluate the relationship with suppliers and the receipt at your warehouse. Do you have lines of trucks in the yard waiting to unload? Are your suppliers late or delivering out-of-stock products? All this prevents you from keeping your stock ready to meet any request at any time. To solve these problems, having a receipt management system can be of great help. Well, now it’s time to think about the interval between storing your product and shipping. Are the items allocated in strategic positions to ensure agility in separation? Do your employees handle the goods as little as possible to avoid damage? Is there a defined strategy to reduce the trips made during picking? Will you be able to replenish the separation lines at the right time? Do you have real-time visibility of your stock? If you answer “no” to any of these questions, it indicates that there are adjustments to be made to optimize the last mile. Having a WMS system, which works integrated with your sales system, will make a difference in ensuring internal warehouse efficiency, effective management, and perfect communication with customers. The software automates manual processes and works 24/7 aiming for precision and minimizing errors. Once the entire internal process is done, you are ready to move on to the last mile. And this is where your actions will focus on the perception the customer will have of your company. The first thing to do is identify how you deliver to the final customer. Let’s consider that you have a network of physical stores. In this case, online sales are simply an additional strategy to drive traffic to your store, but the delivery is made directly there, eliminating shipping costs and offering the customer the convenience of picking up the product when they prefer. In this case, you have the advantage of being able to offer an enhanced shopping experience for your online customers. If, on the other hand, your sector is completely online, you need to plan and optimize deliveries. Some points you should consider are: – Choosing the delivery service: it is important to select a reliable partner capable of meeting delivery times. – Packaging: pack your products securely to avoid damage during transport. – Transparency: inform customers about the expected delivery times and provide them with a tracking number. – Return management: make it easy for customers to return products if necessary. Technology is an ally for those who want to optimize the last mile. And in this phase, it can be used in various ways. Some options to consider include: – Using tracking apps to allow customers to monitor their deliveries in real-time. – Implementing transportation management systems (TMS) to optimize delivery operations. – Using connected vehicles to improve transport visibility and goods safety. – Developing advanced routing algorithms to plan delivery routes efficiently. – Exploring delivery automation through drones or autonomous vehicles in certain areas or situations. By using technology wisely, you can greatly improve efficiency and customer experience in the last mile. Finally, don’t forget to gather feedback from your customers regarding the delivery experience. This will give you valuable insights into what works and what can be improved. You can use online surveys or send post-delivery emails to gather customer opinions. Keep a keen eye on the performance of the last mile delivery, measuring key performance indicators (KPIs) such as delivery times, return rate, customer satisfaction, and more. With these metrics, you will be able to assess the effectiveness of your operations and continuously make improvements. Last-mile delivery: how to overcome challenges and become more efficient Deagor WMS per ecommerce può aiutarti!