Riddhi Corporate Services Limited
Last Mile Delivery Challenges
www.riddhicorporate.co.in
There has been an increase in the number of
companies offering third party logistics
services (3PLs), which are now competing with
shipping carriers for last mile delivery.
In many cases, a third party logistics company
stores the products in a warehouse that serves
a particular area of customers. Final
transportation and last-mile delivery are the
responsibility of the 3PL when an order is
placed.
1. High Costs
The entire supply chain and last mile delivery
operations are the most expensive because
of several challenges.
There are numerous obstacles to its
implementation, including
antiquated IT
Vision
Mission
infrastructure, limited logistics visibility, and a
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growing demand
same-day
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delivery.
Total
shipment
costs
can be reduced
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by optimizing last mile delivery solutions
A lack of efficient routing techniques, manual
task allocation, and poorly managed thirdparty logistics providers threaten the
shipping process and prolong delivery turnaround times.
It is difficult to maximize vehicle capacity
with same-day delivery due to the limited
product inventory, reducing the savings for
logistics firms. As a result, the associated
costs increase accordingly.
2. Rigid processes resulting in inadequacy
With instant fulfillment and constantly changing
market dynamics, rigid delivery systems, which
are considered to be one of the most significant
supply chain inefficiencies, are becoming
increasingly obsolete.
Customer dissatisfaction increases when
traditional processes rely on manual involvement
and fail to meet consumer expectations.
Nowadays, consumers prefer brands that let them
choose how and when to receive deliveries based
on their convenience.
3. Poor Supply Chain Visibility
A lack of visibility in logistics operations has many
contributing factors, including outdated supply
chain architectures, outdated delivery methods,
and inadequate system integration.
In the absence of synchronization between an
order management system and a third-party
logistics provider’s system, it is extremely difficult
for logistics managers to track and trace a truck’s
precise location.
There are numerous inefficiencies as a result of this. Visibility problems result in delays, false
ETAs, route diverts, idled vehicles, and increased fuel consumption. They also obscure deliveries
to customers, which exacerbates last-mile delivery problems.
Thank you
Source Link: https://medium.com/@riddhicorporatesl/last-mile-delivery-challenges-dcf09dfa0e38