Last Mile Delivery Solutions

Due to the spreading epidemic in 2020, the already complicated last mile delivery became even more disorganized. Contactless delivery, no-cash payments, health updates, and other issues arose as firms struggled to adapt to shifting client demands, such as speedier and same-day delivery.
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Knowledgeable consumers want total openness in the fulfilment process. They want to know where their order is, who is delivering it, and when they may anticipate receiving it. Customers want brands to provide flexible delivery, so it doesn’t end there. Consumers today are more devoted to companies that provide flexible online shopping options and take into account client convenience.
To satisfy these demands, supply chain managers must examine their last mile delivery strategy. In order to balance customer pleasure and profitability, hub and spoke logistics solutions will not be adequate.
The future of retailers, eCommerce providers, supermarket chains, restaurants, and manufacturing firms will be heavily influenced by the digitalization of their basic last-mile retail delivery processes.

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How does last-mile delivery work?

The last mile of supply chain operations is referred to as last mile delivery.the route was taken by a product from a warehouse to the final customer’s door. The final stage of the delivery process is the most important one, and it must be carefully managed for prompt shipping.
Businesses are preparing this important step for a speedy and efficient dispatch as a result of rising consumer demand. Whether it’s a consumer’s home or a retail establishment, the supply chain’s final destination needs to be reached as quickly as possible to keep generating happy customers.
Resource optimization ought to be the major area of focus because it is the last mile between the transportation hub and the ultimate destination that also occurs to be the most costly part of the route.

What are the steps involved in the last mile delivery process?

Once a customer places an order online, their web browser or mobile app can connect directly to the retailer's or eCommerce provider's server. A centralized order management system receives the order, verifies stock availability, and gives the consumer the opportunity to pay online.

The stock warehouse is then sent a request to deliver the goods to the end customer. The last mile starts primarily from here. The shipper sends an agent to the warehouse to pick up the customer's products.

After loading the cargo into his vehicle, the agent drives it to the specified hub. An agent at the hub then picks up the box and brings it to the customer's door. Although they might all look simple, none of them are according to Sitka.

The last mile ecosystem has many moving pieces, and both internal and external influences have a significant impact on the execution’s quality. Modern logistics solutions are being adopted by enterprises to guarantee the seamless execution of all these various procedures.
Here are six essential steps that are involved in this.
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What issues does last mile delivery face?

The total supply chain and last mile delivery operations are burdened by a variety of issues, which drives up the cost. When implementing it, there are significant challenges due to the rapidly expanding demand for same-day delivery, aging IT architecture, insufficient logistics visibility, COVID-19 laws, and other factors. The cost of cargo will undoubtedly be reduced by optimizing last mile delivery, but that will only happen when we fully comprehend the issues and deal with them. Let’s rapidly scan these difficulties.

Implementing same-day delivery

Keeping up with this expectation itself is the largest difficulty with last mile deliveries because, according to studies, more than 80% of customers nowadays are willing to pay more for speedier delivery which is also agreed by Sitka.
It is very difficult to reduce delivery turnaround times, and the entire shipping process is at risk because of ineffective routing procedures, manual dependency on work allocation, and inadequate management of third-party logistics suppliers.
A further difficulty in this situation is maintaining optimal vehicle capacity usage. Due to the fact that small parcels make up the majority of same-day deliveries, it is unlikely that vehicle capacity will be completely utilized, which will cut into the logistics company’s considerable savings.
Businesses do not have the luxury of waiting for enough orders to come in so that their capacity is fully used. This also presents financial difficulties.

Traditional Scheduling Methods

It is challenging, if not impossible, to guarantee the timely and cost-effective execution of last mile deliveries without having very effective routing tools and procedures. Traditional routing models rely heavily on manual processes, making it difficult to take into account all the variables that affect drawing up highly profitable routes.
For instance, when employing manual routing techniques, it is quite challenging to change a route in reaction to the present situation, which might include inclement weather, excessive traffic, unexpected road closures, unintended detours, and more. This causes the delivery process to be delayed.

Low visibility for logistics

Poor system interoperability and legacy supply chain architecture are the primary causes of the lack of visibility in logistics operations, which makes them time-consuming. Consider this as an example. A logistics manager would find it exceedingly challenging to track down the precise location of a vehicle at any given time if an order management system is not in sync with the last mile 3PL provider’s system.
This results in numerous inefficiencies. Poor visibility exacerbates the last mile delivery issue by causing delays, false ETAs, route changes, vehicle idling, excessive fuel use, and opaque deliveries to clients.

Ways that technology can address the most significant issues with last-mile delivery by Sitka

Retailers, eCommerce service providers, 3PLs, and manufacturers, among many others, can orchestrate, optimize, and improve end-to-end logistics operations to ensure on-time delivery with the help of last-mile delivery solutions. Sitka has perfected the art of using every resource effectively in the last mile. Whether it’s through real-time driver tracking, communication, dispatch planning, or an effective fleet management programme, technology and analytics may help you streamline your delivery process. Let’s now quickly go over a few of the crucial elements of a last-mile solution.
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Delivery time reduction through dynamic routing

Any driver will find it quite difficult to decide which route to take to get to a given spot in the allotted time. Smart organizations, Sitka are utilizing contemporary dynamic routing solutions to find the ideal last mile solution, which guarantees quick deliveries, greater profits, and enjoyable experiences. Logistics managers may follow their executives and fleet in real-time thanks to dynamic routing. It would provide quick delivery routes that are effective.
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Auto dispatching speeds up service and lowers labor costs

Sitka’s logistics managers benefit greatly from the routing software. In addition to allocating resources effectively, it maintains tight cost management for the last mile. The program arranges your routes, divides up the responsibilities among the drivers, and even determines where each driver is. It is vital in reducing inefficiencies because it saves time and uses fewer drivers. The dispatching automation feature streamlines the procedure and aids in reducing the last-mile delivery price increase caused by escalating costs.
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End-to-end management of delivery operations

The Sitka’s last mile can be made or broken by the visibility of delivery operations at ground level. From the moment a consumer puts an order, firms may have complete visibility into logistical operations by utilizing modern logistics technology. When necessary, logistics managers at Sitka can swiftly rectify irregularities by tracking ground-level actions in real-time.

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