eCommerce is not just about quick and convenient access to the world’s best brands and products via the internet, but also the fastest availability of these goods to the end customers via efficient logistics and supply chain management.
In today’s age of digitalization and fast consumerism, every online business strives to offer the fastest delivery to its customers, given the demand for express delivery these days. Thus comes the last-mile logistics or delivery which is becoming the most essential aspect of the eCommerce logistics industry.
Last-mile delivery is the final stage in the shipping process where goods are delivered to the customer’s doorstep from the distribution hubs, thus concluding the whole process of order fulfilment. This final leg of order fulfilment is the stage which demands careful and foolproof planning, management, administration, and supervision.
Given the fact that 80% of consumers today are willing to pay double the price to get their orders delivered in no time, the burden lies on the shipping and logistics industry to steer clear of the challenges brought by the drastic climate change and global political and military conflicts.
This blog will delve into the factors affecting last-mile logistics and the challenges faced along the way. In addition, it will address questions like what is inventory control and how it emerges as a major factor affecting the process of last-mile logistics.
What Are The Most Severe Challenges Which The Logistics Industry Is Facing?
While technological upgradation has made it convenient for the logistics and shipping industry to boost and upgrade their existing shipping and logistics strategies, the challenges persist. Particularly in the post-pandemic world, the boom in eCommerce and fluctuating
demand and supply patterns have created a phase of uncertainty for the shipping sector.
Here are some of the major challenges or obstacles faced by the shipping fraternity in achieving efficiency in last-mile delivery:
Improper Route Planning
Given the difficult and unpredictable terrain in the country, it is always difficult for logistics management companies to plan seamless freight movement via road routes. Then comes the biggest menace to the logistics sector in India,.e., traffic congestion, which is swelling in the metro cities these days and there is no end to it.
Improper route planning is one of the major reasons why fleet managers and drivers in the logistics sector struggle to meet the delivery timelines most of the time. What they need is efficient and reliable route-planning software at hand to bypass these challenges.
Higher RTO Rates
Now again, the incompetency of the shipping companies and courier partners to meet the high expectations of hyper-impatient customers leads to higher RTO rates, one of the major killers of profit margins.
The whole process of reverse logistics drains a lot of money and resources that could have been utilized to make last-mile delivery more efficient. The increasing expense of reverse logistics creates a burden on shipping companies, thus the last mile gets affected.
Difficult Geography
India has diversity in everything, be it culture or terrain. Right from the barren plains of arid Rajasthan to the inaccessible terrains of Ladakh, it has never been easy for the transportation industry to navigate difficult roads during changing weather patterns or a natural calamity. Not just the difficult terrains, navigating traffic congestion in metropolitan areas has become a real menace for the shipping and logistics sector.
Given the dependence of the logistics segment on road freight in India, achieving an efficient last-mile delivery in the most remote locations is still a major challenge for the industry.
Higher Cost
Not only is the last-mile delivery stage logistically essential, but it also accounts for 40–55% of the entire cost of shipping. Think of it as the undiscovered goldmine hiding beneath the deep waters of e-commerce, ready to be mined for financial gains and customer satisfaction that completely changes the market’s competitive environment.
However, the fuel cost, labour cost, idling costs, reverse logistics, environmental costs, maintenance, and storage costs(in case of perishable costs) associated with last-mile delivery make this stage the most exorbitant one in the entire logistics and shipping operations.
What Is Inventory Control And How Does It Affect The Process Of Last-Mile Delivery?
Inventory control is the management, monitoring, and supervision of the storage of products in big storage spaces to facilitate the distribution of goods to courier companies and further to end customers. Thus, the whole cycle of order fulfilment depends on an efficient inventory control system and the last leg of the order fulfilment process is directly connected to it.
If the conditions of understocking exit in inventory management, then the entire process of order fulfilment will be hampered and this will, in the end, slow down the process of last-mile logistics.
Overcoming Obstacles In Last Mile Delivery: What Are The Solutions?
Optimising last-mile delivery involves several solutions to ensure efficient and timely package delivery to customers. Implementing route optimisation software helps delivery drivers find the shortest and most efficient routes, reducing delivery times and fuel costs. Utilizing delivery lockers or pickup points allows customers to collect their packages at convenient locations, reducing failed delivery attempts.
Adopting technology like GPS tracking and real-time updates enables customers to track their deliveries accurately and receive notifications about delivery times. Associating with local couriers or third-party logistics providers can also improve delivery speed and coverage in specific areas. Most crucially, streamlining warehouse operations, such as efficient order picking and packing processes, ensures quicker dispatch of orders for last-mile delivery. These solutions collectively enhance customer satisfaction and improve overall delivery performance.
Conclusion
The more we move towards extensive digitalization and hyper-accelerated eCommerce, the more would be obstacles brought by technological glitches in major industries. The only way to upgrade and optimize last-mile delivery today is by embracing technological advancements and close collaboration between the various stakeholders involved in the shipping industry.
NimbusPost as one of India’s leading tech-enabled shipping aggregators has an advanced way of handling shipping and logistics operations for eCommerce businesses. They closely collaborate with the country’s top 27+ courier companies who cater to 29,000+ pin codes in the country. NimbusPost is redefining last-mile delivery with AI-driven shipping solutions across India and abroad with economical rates for the rising D2C brands in eCommerce.
