5 last mile delivery trends to watch
With the rise of e-commerce, the last mile delivery industry is also seeing a major upswing. These five trends in last mile delivery services started occurring in recent years and will continue to be a vital part of making last mile deliveries and, in turn, e-commerce a success.
Analytics will continue to drive costs down
In an effort to be the most efficient and effective as possible, logistics companies are using analytics to determine what can be improved in their part of the supply chain.
Improvements in technology that provide better-automated systems and smart technology allow for easier isolation of cost-impacting factors. This ultimately reduces unnecessary costs, translating into savings that can be passed to the consumer.
Years ago, getting a package within a few days was considered fast, but now getting a package within the same day of delivery isn’t uncommon. Businesses are seeing a greater emphasis on including same day delivery due to consumers having a growing demand for the option.
While more expensive, consumers have shown the willingness to spend more to get deliveries within the same day. Two particular examples of industries that are seeing a higher consumer demand for same day and even two-hour delivery are pharmaceuticals and food.
Customers are demanding higher levels of service
Along with same-day delivery, consumers expect a higher level of service. Services such as white glove, inspection of products, and more services will be expected by consumers from last mile delivery companies.
We believe that the demand will increase over time as more companies provide the same services. With the customer demanding these services of the retailer, last mile delivery companies will see more expectations from the retailer.
Large retailers are trying DIY last mile delivery
Larger retailers like Amazon and Walmart are adding last mile divisions in their own companies instead of outsourcing. As we shared in a blog last summer when Walmart first announced its plans, DIY last mile delivery can be an unnecessary strain on any company that attempts it.
Such strains include but are not limited to:
- Developing a fleet of vehicles available in each location to maintain deliveries
- Training staff to carry out last mile deliveries
- Taking care of high costs such as insurance and, in some cases, certifications for the drivers.
With that said, many companies will still outsource to companies that specialize in last mile delivery as 90 percent of shippers have fewer than six trucks to reach local consumers.
Increased EDI usage creating more efficiency
EDI or Electronic Data Interchange will continue to help logistics companies run more smoothly. The method allows retailers to put all pertinent item and shipping information into a logistics company’s database so that the logistics company does not have to enter the data by hand, but rather simply scan a barcode to get information for an item. A faster and more mistake-free option benefits all parties involved.
How can we help?
As the region’s premiere last mile delivery provider, we at On Time Logistics are on the forefront of these latest trends. Our expertise and professionalism make us an excellent choice of logistics providers. Do you have a need for last mile or other forms of delivery? Give us a call.