Outsourcing Last-Mile Delivery
The digital revolution has led to an explosion in online shopping and consumerism. In 2020, over two billion people purchased goods or services online, with online retail sales surpassing 4.2 trillion USD. All of those consumers demand fast and cheap delivery for their last-mile delivery.
In hypercompetitive markets, businesses are doing everything they can to succeed. Many enterprises are turning to ways to improve their last-mile delivery methods to cut down on the cost and time it takes to deliver products. So, what exactly is last-mile delivery?
Last-Mile Delivery Explained
Last-mile delivery is the final and most critical step in the delivery process. This leg of the delivery process occurs when a shipment transfers from a delivery hub to its final destination. The most crucial stage of the delivery, the last mile, is what businesses are constantly refining to make the stage as efficient and fast as possible.
Businesses are competing to develop new technologies and product distribution networks to improve last-mile speeds. Despite this, the final mile continues to confound and pain organizations, particularly in same-day last-mile deliveries.
The Last-Mile Problem
In a word, the last mile problem is inefficiency. The closing leg of a shipping route is always the most excruciating. This inefficiency derives from the fact multiple stops and low drop sizes mire a package on the final leg of its journey.
Stops on a delivery route can be miles apart, especially in rural areas. Cities are not any better, where heavy traffic patterns void the closer proximity of delivery destinations. These inefficiencies are continuing to increase due to the increasing volume of online sales. The Covid-19 pandemic has duly compounded this problem.
The Costs of the Last Mile
The final mile is the most expensive part of shipping a package, requiring half of the total shipping cost. The ubiquity and expectation of free shipping options are exacerbating the issue. Businesses are constantly trying to offload these costs by adopting new technology or outsourcing last-mile deliveries.
Outsourcing the Last Mile
Organizations greatly benefit from outsourcing the last mile. Last-mile delivery companies, like FlashBox, are cheaper and more efficient than traditional delivery channels. How do they accomplish this? Let’s take a look:
- Lower costs. Hiring a courier is much cheaper than the cost of purchasing and maintaining a delivery fleet. A last-mile courier is available when you need it, as much as you need it, offsetting the massive costs of an in-house delivery fleet.
- Superior Technology. Last-mile couriers bring the technology your customers want. Through the use of couriers, customers can track their deliveries in real-time. This type of technology can be tricky to develop in-house. Outsourcing delivery solves this by already offering these features to clients.
- Improved Reporting. A third-party delivery company tracks and analyzes delivery costs. So, you always know what to expect future spending to be.
Take advantage of last-mile delivery companies to simplify your shipping needs and improve logistics. Cut down on your shipping costs today and outsource the last mile.
