An Ultimate Guide to First Mile Delivery in Egypt

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An Ultimate Guide to First Mile Delivery in Egypt

Fueled by rising internet penetration, improved infrastructure, and an increased number of online shoppers, Egypt’s e-commerce sector is projected to register a CAGR of 19.43% from 2023 to 2028. To keep pace with this growth and ensure well-optimized and streamlined logistics operations, logistics service providers need to focus on all three parts of logistics- the first mile, middle mile, and last mile.

While most businesses are investing in tech-powered solutions to optimize the last leg of logistics, it is equally important to automate first mile delivery in Egypt to improve business profitability and ensure timely and cost-efficient movement of finished goods from manufacturing facilities to the warehouse/hub/distribution centers. Let’s dig deeper into what is first mile delivery, the key processes it involves, and how automation can help overcome challenges associated with it. 

First Mile Delivery in Egypt: Definition

First mile delivery, a critical component of logistics and supply chain management, refers to the movement of goods from the manufacturing plant or initial pickup hub to the carrier’s hub or distribution center. It is the first leg of logistics, and its efficiency is crucial for ensuring timely and cost-effective delivery to the end consumer. Let’s understand its definition with regard to different industries.

  • For a retailer, first mile delivery involves the movement of goods from regional distribution hubs to local retail stores.
  • For an exporter, first mile delivery means moving goods from a manufacturing facility to the distribution center.
  • For a courier, express, and parcel (CEP) service provider, the first leg of logistics involves moving consignments from a store or hub to the distribution center.

First Mile Delivery in Egypt: Key Steps Involved

These are the steps performed during the first mile delivery:

  • Receiving the order: The seller receives the order from the buyer and processes it for fulfillment.
  • Picking and packing: The products are then picked from the manufacturing unit, packed, and prepared for shipping.
  • Labeling and scanning: Each package is labeled and scanned to ensure accurate tracking and traceability.
  • Carrier pickup: The carrier then picks up the packages and transports them to their hub or network for further processing.

First Mile Delivery in Egypt: How Does it Differ From Last mile Delivery

First mile delivery is the first stage of logistics management, where the movement of goods begins. On the contrary, the last mile delivery is the final stage of logistics management that facilitates moving a parcel from the last distribution hub to customers’ doorsteps. The former involves bulk transportation of goods in large pallet-sized shipments, whereas the latter involves transporting goods in small packages. Another difference between the two is that in the first mile, goods are packed in unbranded packages, and in the last mile goods are packed in branded and even customized packages.

How Does Automation Help to Overcome Challenges Associated with First Mile Delivery in Egypt

Like the middle and the last mile delivery, businesses in Egypt might face challenges with first mile delivery management as well. These challenges can be overcome by implementing first mile delivery management software in Egypt. Let’s dig deeper into the first mile delivery challenges and how automation can help:

Not Focusing on the First Mile Experience

Most businesses believe that it is the last mile delivery that needs to be focused upon to enhance customer experience. While the truth is that all three legs of logistics need equal importance, as any inefficiency or error in the first mile process can create a domino effect.

Automating the management of first mile delivery eliminates the chances of costly errors and ensures operational efficiency. The first mile delivery management software automates the allocation of orders to hubs and riders based on multiple constraints such as order weight and volume, delivery location, etc. It also automatically combines first mile pickups and deliveries for better orchestration.   

Manual Labeling

Labeling is a crucial aspect of first-mile delivery, yet many businesses still rely on manual labeling processes that often lead to incomplete or inaccurate information. This, in turn, causes delays and inefficiencies in dispatching packages. First mile delivery management software solves this problem by automating the label generation and printing process for businesses as well as retail customers.

Lack of Visibility

Poor visibility of first-mile operations can impact not only the mid-mile but also the last-mile processes, ultimately affecting the end-customer’s experience. No or minimal operational visibility also results in the inability to track the movement of parcels from the warehouse to the hub, poor handling, and en route delays. To mitigate this challenge, businesses can simply integrate first mile delivery management software in Egypt. The software offers 360-degree visibility of all first mile operations to all stakeholders through regular updates and notifications.

Inefficient Route Planning

Manual route planning during first mile delivery management may lead to increased fuel consumption, poor utilization of resources, and high transportation costs. First mile delivery management software in Egypt facilitates intelligent route planning to find the shortest and cost-efficient routes for the movement of goods.

Lack of Data Visualization

Data analytics empower logistics managers to have critical insights associated with the riders, first mile pickups, and other operations. They can rely on this data to make informed decisions to improve first mile delivery management. First mile delivery software in Egypt allows businesses to leverage smart data and analytics to track key metrics, monitor carriers’ performance, and generate and share customized business reports with stakeholders and internal teams.

Ensure Efficient First Mile Delivery in Egypt with Shipsy

Shipsy’s SaaS-based first mile delivery management software empowers businesses to run first mile operations seamlessly. It intelligently allocates orders to the hubs and riders based on geolocation and other smart allocation rules. The software also offers a unified dashboard to consolidate the movement of shipments and share live updates. It comes with more than six e-commerce integrations and business intelligence that allows businesses to unlock benefits such as:

  • 90% auto allocation of orders
  • 26% increase in delivery NPS
  • 45% reduction in customer onboarding time

To know more about Shipsy’s first mile delivery management software or how it fulfills your specific business needs, schedule a customized demonstration today.

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