How to Reduce Last-Mile Delivery Costs

How to Reduce Last-Mile Delivery Costs

Last-Mile Delivery is a keyword in the supply chain logistics industry with respect to moving of consignment to its final destination. Why is it so important? The reason is simple; customer satisfaction completely depends on the last mile or the final delivery. In addition, last-mile delivery is the most expensive and time-consuming part of the shipping process. Now the question is, how can a business reduce the cost of last-mile delivery? Is there any solution available?

Let’s look at the few essential ways through which the last mile cost can be reduced to a large extent.

Route Optimization

Generally, the drivers are familiar with the local areas and routes, but sometimes the unforeseen obstacles like traffic diversion, construction closures, etc., might make the driver helpless to find the alternative and optimal route. Well, then again the last mile delivery route planning can’t be done using pen and paper, as it can be a costly affair and cause a delay in deliveries.

The best way is to prepare a route that takes into account all factors like traffic congestion and climatic conditions. This not only helps save time and money but also aids in reduced fuel consumption while delivery.

Create numerous avenues

Arranging last-mile delivery from the manufacturer’s site to the port, ship it and then again make the consignment available for deliveries through various other distribution channels consumes lots of time and cost of delivery. Having multiple warehouses and Distribution centres help in speedy deliveries at a reduced cost.

GPS tracking

Keeping a tab on drivers while they are out on delivery of the consignment to ensure they reach the destination by the estimated arrival time. The GPS tracker will provide the information if the driver has taken any unscheduled breaks, crossed speed limits,etc., that results in increasing the last mile delivery time.

With GPS tracker any variation will be detected and instantly notified to take proactive and corrective actions.

Clubbing of orders

Orders can be combined based on the following factors; this will help in consignment reaching on time without any trouble.

Delivery time slots

Location preference

Priority orders

Order specifications Proper resource utilisation

The utilisation of resources is one of the major steps towards making the last-mile delivery faster, responsive and sustainable. With this, the business will have enhanced turnaround time, faster delivery, and improved vehicle utilisation. By managing deliveries in the best possible manner, one can bring down the costs and attain more control over the delivery.

Last-mile delivery is all about managing the show with consistent improvement for on-time deliverables to customers. 20Cube Logistics have distribution centres and warehouses across the globe that helps keep to make a quick delivery within the turn-around-time.