Online retailers and transportation companies have found new ways to meet their changing customer needs. Order fulfillment forms the backbone of the retail business. Today, customers want rapid deliveries. The challenge for eCommerce shippers and transportation companies is expediting delivery while keeping costs minimum. Final Mile Delivery is an aspect of order fulfillment that is a challenge for transportation companies. It is also the most significant expense for retailers.
What Is Final Mile Delivery?
The Final Mile Delivery is the movement of goods from a warehouse to their final destination. Mostly, the final destination is the customer’s doorstep. This delivery aims to deliver items to the end customer as soon as possible.
This form of delivery is an integral part of the eCommerce machine as customers can easily switch to other retailers offering better shipping options.
The central gap between the final mile delivery option is the time-lapse between delivery and arrival. Inefficiency in this process is the primary cause of delays. The final step in order fulfillment is independent shipping, where carriers transport the package from the warehouse to the end customer.
The efficiency and speed of this process depend on a lot of factors:
- Size of your company and your transportation manager
- The number of orders picked up and packed during a day
- The distance between the warehouse and the delivery points
- The warehouse location
The Latest Trends In Final Mile Delivery:
The world of eCommerce is continually changing. So, third-party logistics providers and retailers also need to keep up. Here are some of the rising trends in final step delivery.
Gig Economy And Crowdsourcing:
Venture capitalists are more interested in companies’ technology and information. They are relying on the gig economy and crowdsourcing more and more.
Companies post jobs on their apps which independent shippers can claim. This way, shipping costs are reduced and a much more flexible option.
Rapid Order Fulfillment:
With the expansion of the internet, consumers can find what they’re looking for much quicker. As the order process has become simpler, clients want their products faster. 3PL providers optimize orders using a warehouse management system to cope with these demands.
In-House Delivery Services:
Companies have started sharing their vehicles for in-house delivery services to reduce the final mile delivery costs. Some companies join hands with competitors to minimize expenses and combine transportation assets.
Upselling During Delivery:
Retailers make more by upselling customer orders. Companies are now using predictive intelligence technology to anticipate what a customer might need and make those suggestions at check out.
This model is more suitable for the food sector but may work for the apparel and pharma industries.
The consumer wants to know the exact location of their orders. Modern technology has made this easier plus opened up new opportunities. By using intelligent technologies, customers can track their shipments and sometimes the temperature and humidity levels inside their package. Also, 3PL providers are using predictive technology to plan their packaging and delivery according to the weather conditions.
Q-How long does final mile delivery take?
Usually, the delivery time is between 8-10 business days in economy class services. The primary service time is 4-6 days, while it is two days for expedited shipping. The last part, i.e., the final mile, is the most time-consuming process, getting the product at the customer’s doorstep.
Q- Give an example of Final Mile Delivery?
The last mile delivery involves getting a product from the nearest shipping location to the customer. This should be done most cost-effectively and rapidly. For example, you ordered a shirt online. Once the order is confirmed, a shipping company will pick it up from a company warehouse. From there, they will process it and send it off via a local delivery man at your doorstep.
The upcoming trends in the Final Mile Delivery process are all focused on reducing company expenses and getting the product to the end customer as quickly as possible.