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How To Minimize Cost In Last-Mile Deliveries?

By Nammitta Dutta 18th April 2019

Many consumers don’t know everything that goes into delivering a purchase that they made on some website while shopping online. You click that buy button to checkout from your shopping cart and, somewhere hundreds of miles away in some other part of the world, your product is selected, wrapped, boxed and taped shut. It’s thrown down a few chutes and across conveyor belts and prepared for last-mile delivery to the customers.

We’re all aware that online retail is at the peak, and together with it, the volume of last-mile delivery orders is on the rise. The foremost way to flourish in business is to be swift and superior to your competition. Offering high-grade products to consumers will help you make it through but offering them those items at a significantly cheaper price tag will help your company last for very long. Over these hardships of rising prices, consumers are searching for ways to spend less on every little thing possible, particularly on last-mile delivery of the items that they order. Let’s face it, making last-mile deliveries are expensive. Given that the last mile can involve for 41% of overall supply chain costs, it’s not surprising that retailers, grocers, and other businesses may be careful about expanding their existing last-mile delivery services or launching new ones.

That’s why you need to be more creative in cutting down your overheads, in this case, shipping, and last-mile delivery costs, so that your pricing can be more competitive. Here are 5 ways to reduce the last-mile delivery costs.

  • Automation In Workflows   

Recently we wrote the reason we’re addicted to automation in last-mile deliveries and why is it important to maintain a profitable business. Automating last-mile deliveries help companies to streamline their delivery operations to boost profitability. Automation with last-mile delivery solution reduces the need for extra resources. Managing multiple deliveries at once gets better and grows with time. Automation is possible at every stage of the delivery cycle. Starting from automation in warehouse, automated dispatch, and tracking.

  • Travel Through The Optimized Routes

It is unquestionable that route optimization is the best way to minimize your cost. A route optimization software establishes the most optimized routes and assigns tasks based on the volumes, traffic conditions, estimated time of arrival, depots, time windows of stores, number of vehicles, loads, etc. in the least amount of time possible. Say Goodbye to paper-trail, the ideal route optimization software helps companies allocate time and resources hassle-free, more efficiently and economically as well as reduce operational costs, overhead costs, and fuel expenses on road.

  • Invest In Customer Experience

Investing in customer experience is a must when businesses want their customers to bring back business to them. Nowadays in the modern technology world, customers expect a completely transparent delivery cycle and want to be updated at every stage.
Customers today not only expect on-time delivery, but they have very specific expectations about everything from the type of delivery options to the delivery costs, and even to how delivery drivers will communicate with them. You don’t have to set new trends, but you do have to match last-mile deliveries to market expectations or risk losing your customers base.

  • Hands-On Right Technology

While drones, autonomous vehicles, and robots are waiting in the wings to disrupt the way businesses make their last-mile delivery, there are many existing technologies that can help you reduce your costing today. Moving items from point A to point B hassle-free and more efficiently can save companies time, money, and allow businesses to focus on the things they care about more than delivery.

A great example of leveraging an existing technology is Tookan. It is a robust and flexible last-mile delivery solution to streamline your delivery and reduce operational costs. Our dynamic platform allows individuals and businesses to tap into the benefits of a crowdsourced delivery network while maintaining their own in-house deliveries through our freelancers’ module.

  • Proper Resource Utilization

Utilizing resources properly could be one of the major step forward towards making the entire last-mile delivery ecosystem more responsive and sustainable. As an outcome businesses get to observe improved turnaround times, faster delivery authentication, reduction in detention times, and improved vehicle/driver utilization.

By managing deliveries and assigning the best available delivery driver, you can bring delivery costs down and gain more control over your own delivery fleet as well as have the ability to tap into crowd-sourcing, without actually having to purchase any vehicles or hire additional staff.

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