Tag Archives: customers

last mile delivery

How to Cut Costs on Last Mile Delivery

The last-mile delivery is a key part of a supply chain process, for both B2B and B2C businesses. It leaves the final impression about your company in the customer’s mind, so outlining the right last-mile strategy is very important.

What is the last-mile delivery?

Last-mile delivery involves transporting freight from a transportation hub to the customer’s home or company’s warehouse. It is considered the most expensive and inefficient component of shipping and may consume from 20 to 30 percent of general shipping costs. Regardless of your transportation management level, neglecting a last-mile delivery strategy can disrupt the shipment and lead to unforeseen expenses.

last mile delivery

How to optimize the last mile?

Optimizing last-mile delivery can be complicated and difficult for both small and large businesses. This happens because of many circumstances that are very hard to manage, such as recipients that aren’t home/present, delays, and misuse of tracking technologies. There are certain applicable ways to improve the quality and speed of delivery as much as possible.

Planning

Before seeking a solution, you have to determine the problem. Review your last mile tactics and define the weak spots. It may be an outdated tracking system, poor review of drivers and pickers, and other features that impact the shipping process. Create a plan of action considering all the elements that require modifications.

Proper management of human resources

Technology and innovation help improve the company’s performance a lot, but people still do the main job. Humans tend to make mistakes and fall under uncontrollable circumstances, so a specific overview will let you define the drawbacks and fix them.

Implementing real-time tracking and automation

The analysis of shipment transit and new technology helps to optimize routes as much as possible and decreases the occurrence of delays. It is also crucial to provide final recipients with access to shipment tracking, as it notifies them approximately when the freight is going to arrive at the destination.

Seeking innovative solutions

The challenge of tackling last-mile delivery has come into the spotlight in recent years. New companies, narrowly specialized in delivering solutions for the final link of shipping, offer different services and strategies that can help businesses optimize the last-mile delivery process. Vehicle manufacturers also noticed the problem and focused on creating automated trucks specifically for the last mile delivery. For instance, Renault and Mercedes recently presented autonomous delivery vans, developed for the efficiency of end-to-end shipping.

It becomes more and more important to recognize the role of last-mile delivery, so tackling the right strategy might be reasonable for your supply chain efficiency. There are plenty of possibilities to improve the performance and ship the way your customers want. Keep up with the trends and constantly apply new solutions to your business practices to help ensure successful last-mile delivery.

The Importance of Customer Service in the Logistics Industry

In today’s global economy, customers set the bar of what is considered quality service or what is a good brand. In any business, a customer’s experience determines the reputation of the company, and the logistics industry is not an exception.

The bigger your business is, the more complex your supply chain gets. It can be hard to maintain perfect customer service because everyone involved in the shipping process is constantly affecting a company’s reputation through customer experience. In client service, it’s impossible to be perfect, but it is possible to be better and provide your customers with the best service possible. Customers want to have a smooth, easy experience when working with a company. It is up to the company on how good that service can be delivered.

If you are striving to build long-term relationships with your customers and gain their loyalty, you should consider shifting from product-oriented strategy to customer-focused one. Here are some useful tips on how to take customer service to the next level:

  1. Choose the tools and partners accurately. No matter what strategies and technologies you use, there is always a human factor present. That’s the reason why choosing partners properly will enhance your customers’ experience. If you are outsourcing your logistics to a 3PL provider, make sure they have skilled and professional brokers and a network of experienced and reviewed carriers. Such services offer logistics management from A to Z and will take most of the hassle away. But as you select a key link in your logistics, you should invest time researching how to pick the best third-party logistics provider.
  2. Transparency and personal approach. Try to make the process as easy as possible for the customer. Supply chain visibility will reduce the time your client’s spending on shipping, therefore improving the overall experience they get from working with you. Transparency involves not only shipment tracking but also the option to compare available prices, services and understand how they work without any trouble. The more personalized approach you provide, the higher your chances are to retain customers. Send tracking updates and reports to customer to keep them in the loop, ranging from shipment transits to weather reminders. This strengthens your company’s credibility and simplifies the process for your customers.
  3. Establish the last mile delivery. This is a final and crucial element in the transportation process and obviously demands more concentration. The last stage of delivery is the most vulnerable to mistakes or damages that may occur due to different reasons. To reduce the likelihood of such circumstances, assure that everything goes the way it should.
  4. Provide feedback. No matter what issue took place, the response should be swift and intended to solve the customer’s problem, or at least to figure out what is the issue. Businesses should invest more in their staff training to reduce the chance of errors while interacting with customers. Solving problems that occurred on behalf of your company can make a big difference in a customer’s experience with your company. Many 3PL companies provide customer service and can help their customers simplify this complicated process.
  5. Technology & analysis. Don’t underestimate the power of data: new technologies let businesses track every step of the customer, existing or potential. Knowing the deep insights of your audience leads to better performance, updated strategies, and better service. Such innovations like transportation management systems, tracking devices and CRM systems let businesses study customer’s behavior and improve marketing strategies. So, researching and analyzing big data is the best way to achieve a better understanding of customers’ demands.

After all, you can reach your goals and improve the service when you are always up to date with new technologies and industry renovations.