What is Last Mile Delivery?
Last Mile Delivery refers to the delivery of products to the last point, that is, the customer, in supply chain and logistics. In particular, it is almost the most complex process of E-Commerce, involving many variables and costs.
Last Mile Delivery History
We can see the first example of Last Mile Delivery in postal and telegraph services. The rise of e-commerce and especially the different approaches of international companies such as Amazon have made Last Mile Delivery a critical element in Supply Chain processes.
Benefits to Purchasing Processes
Less need to keep stock (Stock Optimization),
More efficient last point logistics,
Urgent orders arrive faster,
Increased satisfaction of the final customer,
Good relations with suppliers,
Especially in E-Commerce, delivery time is the factor that determines the purchase,
It can be summarized as follows.
Opportunities
Data Analytics: With artificial intelligence and data analysis, processes can be made more efficient and cost-effective.
Individual transportation: The use of freelancers provides significant cost flexibility.
Flexible delivery options: Processes such as purchasing from the cargo point and Kagro pot boxes can be decisive in purchasing as they will provide great flexibility to the customer at this point.
Expanding the scope of service: Additional services, such as companies such as IKEA providing installation services during delivery, will increase customer satisfaction.
Risks
Variable costs: Variable costs required by being flexible are among the costs that must be kept under control.
Operational complexity: The fact that the number of movements is higher compared to previous processes brings confusion.
Employee safety: The dangers faced by people who transport vehicles with high accident rates, such as scooters and bicycles, are among the most sensitive points of the process.
Sustainability: The fact that the highest employee turnover is at this point is one of the areas where sustainability in the Supply Chain will be most difficult in terms of quality and human resources.
Useful Links
Good Practices
Local Storage:In big cities, products are delivered to customers faster by using local storage areas.
Smart Routing:Google Maps and similar smart route planning tools ensure faster and more efficient delivery.
Drone Deliveries:Companies such as Amazon and UPS are further accelerating the last mile process by trying drone deliveries.
Eco Deliveries: Deliveries made using electric vehicles within the framework of sustainability targets.
·Digital Tracking: Real-time location tracking to increase customer satisfaction.
Amazon Prime Now: Amazon's 2 Hour Delivery Service is a good example of how Last Mile Delivery can be managed effectively.
In summary...
Last Mile Delivery, Although it may seem like a simple step, it is a process that still has high potential in Supply Chain processes and especially in E-Commerce. With the development of e-commerce and technology, we will see many innovations and improvements in this field.
Resources
Cover Photo: Adobe Express