The "last mile" delivery is, without a doubt, a fundamental moment in the supply chain; it is the final step in the process, the delivery to the customer, and therefore plays a decisive role both in terms of costs and Customer Experience.
Last mile logistics is one of the most significant stages in the supply chain, both for e-commerce businesses and for companies in the logistics sector.
Today, direct-to-customer deliveries and fast access to cities are seen as elements that make online shops and their suppliers more competitive in the market and more profitable.
Moreover, as the National Observatory of Telecommunications and Information Society (ONTSI) points out in its E-Commerce Study In Spain, 28.5 % of online transactions involve a physical shipment. Polishing the logistics processes associated with this last stage of delivery is a key action for e-commerce.
Importance of last mile logistics for e-commerce businesses
When we talk about last mile logistics in e-commerce, we are referring to all the aspects that guarantee that the final customer receives the product or article that was purchased via the Internet with the required quality. Factors such as the reduction of time and cost at this stage motivate the consolidation of brands in the hearts of consumers.
Thus, for many specialists in the field, logistics, and within this, home delivery, has become a fundamental link that improves the level of consumer satisfaction.
Immediacy is one of the premises required. In general, the customer does not take into account his geographical location, the time or the day he placed his order: he simply cares about delivery time and price, which can be affected by inefficient logistics.
Therefore, among the aspects that are considered key to the successful performance of an e-commerce business, the synchronised and efficient execution of the processes associated with last-mile logistics stands out.
Challenges facing e-commerce in the last mile
Getting the right products into the hands of a brand's end customers in the shortest possible time is one of the challenges facing organisations today. In this way, it is possible to build loyalty among a larger number of users. However, this is not the only challenge facing e-commerce.
In order to maintain market reputation and increase profitability, special attention needs to be paid to aspects such as cost management, exact location of customers, efficiency of service and to consider other aspects such as delivery within 24 hours.
Last mile logistics is one of the stages that should be prioritised by e-commerce in order to achieve greater customer loyalty, reduce costs and, therefore, increase profitability.
Increasing the speed and flexibility of shipments - solutions
Some people are reluctant to buy online because of the time it takes from the time they place their order to the time they receive the goods at home. This situation is exacerbated in locations where shoppers do not have a clear postal address.
In this respect, new technologies play a key role in meeting customer demands. Innovative solutions have already been registered that make use of geolocation and encourage the development of smart courier solutions that automatically assign delivery to the courier closest to the destination.
On the other hand, and in terms of transport, these last few metres can be covered by more flexible means, such as electric bicycles or scooters, due to the saturated traffic situation in most of the country's large capitals.
In short, last-mile logistics is one of the stages that should be prioritised by e-commerce in order to achieve greater customer loyalty, reduce costs and, therefore, increase profitability. If smart alternative solutions are sought to provide a satisfactory end-consumer experience, it is essential to consult experts.
At In Side Logistics we have been advising our clients for 15 years on how to improve their supply chain and logistics strategy to enhance their business development. If you want to know how we can help you, contact specialists to add value to your business.
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