The world has seen massive growth in the e-commerce sector over the last decade. You can now buy almost anything online instead of heading over to a store, which is what the majority of people prefer. This has led to a drastic increase in the number of products and the types of products available online. Newer products like food, groceries, and medicine have pushed the field of e-commerce to adapt to many changes in recent years.
There is a long process when it comes to delivering products to customers. Although every part of this delivery process is important, one highly crucial step is last-mile delivery. Last-mile delivery is essentially the process of taking a product from the transportation hub and delivering it to the customer. If you’re looking at starting or transforming your logistics startup, here’s everything you need to know to provide the best last mile delivery solutions.
There is a Growing Need for Last Mile Delivery Solutions
While the bigger giants like Amazon have nearly perfected their last mile delivery strategies, smaller companies are still looking for effective logistics partners. If your startup can tackle the challenges of existing delivery systems, you stand to gain several advantages including holding a huge chunk of the company’s market share. E-commerce companies are not hesitant to switch to better and more efficient logistics partners if there is a guarantee of improving shortcomings. Don’t forget that consumers are always willing to pay a premium if it means faster and more efficient delivery.
Factors Involved in Providing Last Mile Delivery Logistics
Many factors need to be catered to when it comes to providing last mile delivery solutions. The logistics involved include speed, timeliness, accuracy, packaging, specialization, convenience, and precise order-tracking. These highly important factors, if carried out efficiently can directly lead to an increase in brand loyalty which will retain and increase the number of customers.
Existing Challenges in Last Mile Delivery
There are many challenges when it comes to last mile delivery such as traffic congestion in urban areas, extra distance coverage in rural areas, parking, matching the annoyingly affordable rates that Amazon offers, and so on. Also, when there is an increase in demand and supply, it leads to a capacity crunch and a shortage of drivers. In addition to these general challenges, there has also been an increase in customer expectations, which means more demand for free-shipping and same-day deliveries. The traditional standard delivery is opted by very few customers.
To meet these high standards, the cost of handling logistics becomes incredibly expensive. Believe it or not, last mile delivery accounts for 53% of overall costs which is only expected to increase in the future. Existing logistics partners are facing a lot of pressure when it comes to the fast and efficient delivery of products.
Solutions that Your Logistics Startup can Offer
Technology has solved a lot of our problems and made life easier. This is especially true when it comes to business. In fact, Amazon is looking at implementing drone technology to deliver light products at a much faster rate. Technology can also be used to deliver effective last mile delivery strategies. For example, Onfleet is a platform that provides solutions for last mile delivery, one of which is the use of a software to help drivers plan their routes. Not just this, but the software also accounts for real-time traffic allowing for more efficient planning when it comes to delivery.
A recent news report stated that a last mile startup in the middle east received a huge investment to carry out its operations. If your logistics startup can meet the high demands of last mile delivery and adapt to the rapidly changing trends of online shopping, it can undoubtedly thrive in success. The world of e-commerce is not going to slow down. Take your startup to the top of the game by transforming existing logistics in delivery systems.
Tookan : Recommended tech suite for a seamless delivery experience
If you are looking for a complete tech solution to deal with a perfect last-mile delivery experience, you can talk to Team Tookan. You can experience a greater FADR with smart tech solutions such as matching the customer preference window while delivering, route optimization, real-time tracking of delivery agents and many more. Tookan has been a great support to many logistics businesses so far. So, what are you waiting for?
Grab the chance to escalate your logistic start-up business with a promised delivery process.