Last mile deliveries add up to big costs companies must control to improve supply chain efficiency. With peak season coming up, the potential for higher demands can make it harder to control delivery costs and maintain consistent shipping. Studies estimate that last mile deliveries account for over 41% of overall supply chain costs and 53% of total shipping costs. Additionally, studies indicate almost half of consumers will not buy from a company again if an order is late. Therefore, transportation decision-makers should find ways to improve delivery and meet consumer expectations while managing costs so they don’t go over budget.
Solutions that manage last mile costs, especially during peak season, can help businesses avoid missed delivery dates, inflated shipping and delivery costs, and irritated customers. To ensure your business controls last-mile costs and meets deliveries timelines, consider:
- Optimizing routing and mapping
- Offering more flexible delivery options
- Keeping consumers and drivers informed with real-time updates
- Verifying deliveries
Inaccurate routes and incomplete visibility can lead to higher costs and inconsistent delivery timelines. Supply chains will see unsatisfied customers and suffer lost productivity during the holiday season if decision-makers don’t find solutions to manage the last-mile.
Controlling your Delivery Process
Fortunately, businesses can improve visibility and optimize routes with proper connectivity, inventory tracking, and enterprise labels. Get these solutions for your business to help…
- Keep drivers connected for delivery verification and live updates – A more connected delivery team prevents disruptions with cloud-based data storage, mobile computers with push-to-talk capabilities, and long-range and flexible networking. Expanded connectivity and more storage can help drivers connect to teams. As fuel prices fluctuated this year, flexible network connectivity and RFID locationing can integrate visibility to track field teams and optimize travel routes.
- Manage track and trace – Dependable locationing from rugged enterprise devices like RFID gives field and delivery teams dependable real-time connectivity. Instant communication enables quick route changes and schedule updates to adjust workflows with minimal costly interruptions. When delivery teams face fewer interruptions, it reduces last mile costs.
- Proper inventory identification – Ensure your inventory items are properly identified and moved through the supply chain with enterprise labels. Certified labels built for enterprise use ensure compliance, have maximum adhesive strength, and are smear and fade-resistant. Inventory that is properly and timely labeled helps delivery drivers deliver the correct products on time, every time to control costs.
The last-mile makes up a high total of supply chain costs and can be the difference in meeting customer expectations. Learn more about how you can prioritize the delivery process with Avalon.