Updated on July 27th, 2022
According to the recent study conducted by Accenture, approximately 66% of the millennial shoppers want e-commerce companies to offer the option for one-hour delivery in metropolitan cities. Other statistics unveiled by the report include:
These facts clearly reveal the significance of speedy and timely delivery. They also show that it has become necessary to provide the customers with the convenience of changing their order delivery schedule even after placing the order. Besides this, there are many other challenges that online retailers are facing in last-mile operations.
1. Inefficient routing
Route planning and optimization play an important role to control and cut down the overall cost of delivery. Efficient route planning considers fuel efficiency, environmental regulations, traffic conditions, and various other factors beforehand so that the driver doesn’t have to face any problem during the delivery. It is necessary to provide the right ETA to the customer who’s waiting for their order. With the availability of various ways for route efficiency and route optimization, it is imperative to choose the right one for your particular business requirements.
2. Finding the right location
Not having proper addresses, especially without pin codes, can lead to failed deliveries. It also impacts directly to the delivery profitability. Apart from wrong or incomplete addresses, lack of proper signage is also a major roadblock ahead online retailers.
3. High cost of deliveries
With the increase in the competition and the availability of various online shopping platforms, customers avoid paying additional shipping costs. Therefore, it is the responsibility of an e-commerce company to opt for such measures that can reduce the cost of deliveries. Taking care of the penalties caused by delayed deliveries is yet another challenging task ahead. On top of that, inefficient route planning and management can further lead to increased fuel cost and driving time, which can further add to the total cost of the last-mile delivery.
4. Unavailability of the customer
Failed deliveries due to the unavailability of the customer are quite common. A delivery agent puts all his efforts to reach the customers’ place despite unusual weather conditions or traffic. However, the unavailability of the customer at the delivery location puts all his efforts in vain. They have to make further attempts without even knowing whether the customer will be available on the next day or not. Not knowing the availability of the customer at the time of delivery is one of the biggest challenges in front of online retailers.
5. Delayed delivery
Inability to deliver the products on time not only affects the brand’s reputation but also add up to the overall logistics cost. Moreover, it also makes customers choose other shopping platforms that guarantee on-time delivery. In the case of the food deliveries, where companies promise to deliver the order in a particular time, the inability to fulfil the delivery timelines can cause a huge loss as they cannot charge the customer for the order.
6. Uncertainty in transit
Due to unavoidable circumstances or any other reasons, the order delivery might get delayed. It is not something customers never expected of. However, what they expect in that situation is to have a clear and updated communication so that they remain informed about the delays. This is another roadblock faced by online retailers or e-commerce companies.
7. Inability to plan dynamic routes
A customer requesting to change their delivery address is not something we haven’t heard about. But if your last mile system is not prepared for it, the delivery agent might drop the package at the wrong location or have to make another attempt for delivery or even have to take long routes for the same. Not being able to plan routes dynamically is one of the bottlenecks in front of online retailers.
To meet the expectations of the customers and stand strong in this cut-throat competition, e-commerce companies are finding different mediums to improve their last-mile operations. Choosing a last-mile delivery system or software is one of them.
The last mile delivery automates the entire delivery operations and makes it easy for the customers, merchants, and delivery agents to communicate in real-time. Several key benefits of the final mile delivery solution include:
To get a last mile solution with all the aforementioned ones and other advanced features, you can contact Shipsy. Shipsy’s last-mile solutions are customized to fulfil the particular requirements of your business. You can enjoy a smooth, streamlined, and transparent delivery process and get 100% customer satisfaction for your business. Why wait when you can digitize your last mile delivery operations and achieve the desired success for your business?
Last mile delivery plays a pivotal role to ensure on-time deliveries of your products to your customers. Inability to plan and optimize routes, difficulty in finding the right delivery location, inability to deliver orders on time, and problems with planning routes dynamically are some of the challenges that may stop you from delivering orders on time without increasing the overall delivery cost. Integrating last-mile delivery software to your existing ERP can help you get rid of all your delivery-related woes permanently. Read this article to know what benefits a final leg delivery system offers to ensure smooth and streamlined deliveries.