Why Digital Innovation Is Important In Last-Mile Logistics?

Most of the last-mile logistic companies fail to get the expected outcomes from their digital strategy. Demand for providing prompt delivery to retailers, product manufacturers, and consumers are exploding.

It put pressure on shippers to increase their capacity for in-efficient last-mile transportation. Last-mile transportation took up to 41% of the total cost to move goods.

Whereas a well-optimized last-mile delivery helps shippers get more products to consumers faster and cost-effectively.

Shippers have recognized last-mile logistics as a key to drive growth and profitability.

Why last-mile delivery optimization?

Amazon has perfected last-mile delivery. It has grown its Last Mile delivery efforts helping to speed up customer delivery times and provide innovations to customers.

The result of it is that consumers are willing to pay premiums for extra fast delivery like same-day or instant delivery.

Amazon’s benchmark for last-mile logistics has become a new standard in the industry. The giant has also increased customer experiences with its last-mile delivery efforts, and due to this, companies need to beat the competition with a better and more efficient delivery system for the last-mile.

Last Miles Comes With Unique Challenges

There is growing pain for shippers to manage last-mile logistics. Optimizing last-mile delivery solutions has its unique challenges to be addressed. It requires shippers to maintain many types of delivery companies, including traditional parcel carriers, couriers, and even on-demand service providers.

What is more, they have to tackle problems like minimizing cost, ensuring transparency, and increasing efficiency among partners, carriers, and consumers.

What Is The Solution?

Tech-enabled last-mile technology platforms!

A software development agency can build robust last-mile digital technologies that bring you delivery speed, improved operational efficiency as well as ensure growth.

How Digital Innovation Transforms Your Last-Mile Solutions?

  1. Intelligent Routing and Scheduling System

Software development companies build a tool that provides precise routing and delivery mechanics. The use of AI and ML in the tool determines as well as create an intelligent route that helps lower your cost per delivery.

2. Improved Visibility and Collaboration

The tech-enabled platform consists of integrated TMS, CRM, CMS, WMS, and commercial platforms. This bi-directional sync ensures real-time visibility and active communication between different teams.

3. Third-party Management

The last-mile logistics technology also helps you efficiently manage internal as well as contracted fleets. A complete control helps you maintain consistency and ensure a seamless experience across every provider in real-time.

4. Track and Trace

A consumer account helps a user identify and locate his products in supply chain processes. This adds unmatched visibility that helps increase a customer’s experience. The self-service will help reduce order status calls to customer service, resulting in increased loyalty.

5. Data Science, Machine Learning and BI for Better Decision Making

Get a holistic view of real-time insights into your business with the help of emerging technologies. BI and ML help you track the macro KPIs and let you make better business decisions.

Conclusion

Amazon has set an enormous benchmark, and customer expectation, with their capabilities in providing rapid and free delivery. All industries and shippers must be aware of the forthcoming Amazon-Effect.

Therefore, shippers need to act fast to ensure they continue to thrive as more consumers demand better, faster, and free delivery service.

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Alka Singh

Alka Singh

Technical Writer & Content Strategist | Active Since 2011 | Worked at OnGraph | Working On writingtrick.com |