Delivering packages is the most important task for many e-commerce businesses. However, this process can be difficult to manage and can eat into profit margins.
Are you an e-commerce businesses on Shopify dealing with similar problems?
Last mile delivery route optimization is the answer if you’ve been looking for a different, yet effective, way to manage the delivery process.
Few companies pay attention to the concept of optimizing last mile delivery routes. However, this small step can have a significant impact on your business and bottom line. Let’s dig in and learn a little more.
Table of Contents
- What is Last Mile Delivery, and how does it work?
- What does it mean to optimize Last Mile Delivery routes?
- Key factors that contribute to the importance of Last Mile Delivery optimization
- How do I optimize Last Mile Delivery Routes?
- Frequently Asked Questions (FAQs)
- Optimize your Delivery Routes with EasyRoutes by Roundtrip for Shopify
What is Last Mile Delivery, and how does it work?
Last mile delivery refers to getting products from the closest distribution centre to the required address as quickly as possible.
Businesses that require immediate delivery, such as food delivery companies, enterprise supply chains, and businesses that promise one-day delivery, are usually referred to as last mile delivery.
The term “last mile” has recently become popular. The global last mile delivery market is expected to grow to more than 200 billion dollars by 2027, up from 108.1 billion dollars in 2020.
What does it mean to optimize Last Mile Delivery routes?
Optimizing the last mile delivery route is the process of determining the best possible route for a delivery driver to take from the distribution hub to the destination.
Choosing the best delivery route for a company looking to save money on last mile delivery can be a great option. Delivering can be a crucial step because it involves many important factors such as
- The time it takes to deliver
- The cost of the procedure
- Consumption of fuel
- Customer satisfaction
The most important factor among all of the above is the customer experience, as the customer is the link between you and your next lead.
Other factors, however, are equally important. There are other provisions to work on, many upgrades to bring up, and a lot of maintenances to perform, so one cannot compromise a company’s profits for customer satisfaction alone.
As a result, striking a balance between the delivery process and the delivery experience is critical. Customer expectations must be met without jeopardizing the efficiency of last mile delivery. By incorporating advanced last mile delivery strategies, this can be accomplished smoothly.
One of the most important strategies for achieving the above-mentioned balance is last mile delivery optimization.
What is the importance of optimizing last mile delivery routes? Here are a few examples to demonstrate its importance.
Last mile deliveries have the potential to reduce delivery efficiency. Route planning and optimization strategies have the potential to change the game entirely.
Key factors that contribute to the importance of Last Mile Delivery optimization
Let’s look at the key factors that contribute to the importance of last mile delivery optimization.
1) A low-cost delivery method
Is your delivery team taking the most cost-effective route?
In some cases, management may limit itself by providing addresses and pre-planned routes. Even the most experienced delivery personnel will sometimes stick to traditional routes and skip multiple deliveries in the same area.
Have you ever calculated how much it costs your company to operate their deliveries?
Your time, profits, and resources are at risk, while your customers’ experience is jeopardized. This is about a lot more than just a few dollars. So, what’s the answer?
Route optimization is the solution to this problem. Last mile delivery operations can be successfully completed with the help of last mile delivery optimization. This is the most cost-effective way to handle delivery operations.
Last mile delivery route optimization can reduce the cost of delivering packages. Here’s how
- It will save money on additional fuel costs that may arise as a result of a traffic jam or an unnecessary long route.
- It will give you a clear picture of the most efficient route for closing most deliveries.
- It will ensure on-time deliveries, lowering the number of failed deliveries.
- It will make it easier to make multiple deliveries in the same area.
- It will allow for faster delivery and the ability to meet customer demands while keeping overall costs low.
- It will cover the high shipping costs associated with fulfilling online orders.
How are you going to manage your time now that you know that optimizing routes can prove to be efficient and affordable for your last mile logistics? Is it true that manual planning saves you time?
2) Good delivery tracking
Papers were and still are a great way to save information, but not in every way. Nowadays, almost everything can be done online. From taking notes to receiving notifications, there’s something for everyone. Because the response is supposed to be spontaneous, this is the case. In the event of an on-road problem, a driver on the field requires an immediate response.
The keys to meeting this need are communication and tracking. The power of real-time tracking is undeniable. Last mile delivery optimization will allow you to track your delivery personnel in real-time, or near real-time (e.g. show timestamps of important events).
Not only that, but the delivery man will be able to use his screen to track the best routes, locate multiple addresses, and receive traffic alerts.
Businesses benefit from real-time tracking, which increases customer satisfaction. Let’s take a look at some of the most important contributions:
- It is possible to locate vehicles in order to keep track of fleet movement.
- Last mile logistics can improve communication between on-the-ground delivery personnel and staff by allowing them to manage their inventory online and provide instructions.
- The signs for the final destination are placed right next to the screen so that delivery drivers can stay focused on the same page.
- Demands are automatically updated, making supply chain management easier.
- This interface allows delivery vehicles to interact and receive instructions, providing real-time visibility.
- Along with the route, there are real-time traffic updates.
- Customers can get ETAs in real time (Estimated time of arrival).
- Real-time ETAs make it easier for customers to receive packages without disrupting their schedules.
The likelihood of a failed delivery is reduced. Modern technologies have, in some ways, made last mile operations more convenient for logistics companies and their customers. Is it, however, sufficient in resolving last mile problems that arise on the spur of the moment?
3) Time management that works
Manually planning your delivery routes is time-consuming and stressful. Furthermore, human error is always a possibility.
Route optimization is an example of a last mile delivery solution that opens many doors for some significant operations in order to provide you with the best solution for tackling delivery operations smoothly.
When it comes to the delivery process, every second counts. Both e-commerce and the customer benefit from on-time delivery.
When e-commerce logistics management was still in its infancy, manual route optimization was used. However, now that digitization has solved many problems, it is a requirement for every business to use software tools.
That is why manual planning falls short of the advantages of optimization. Here are a few key benefits:
- It gives you real-time data so you can keep track of traffic and plan your routes accordingly.
- It helps you save time by showing you the quickest and most efficient route.
- It is possible to reroute in the event of a huddle.
- It is possible to reduce the risk of taking a long route.
- Because all functions can be managed online, the amount of time spent dealing with each fleet individually is reduced.
This is how properly optimizing delivery routes makes time management much easier. But how is online operation managed, and what are the advantages of having everything online when paper records can be kept as well?
4) Improved last mile challenges management
Route optimization, without a doubt, can solve almost all of the problems associated with last mile delivery operations.
The importance of last mile deliveries cannot be overstated. If handled properly, proper last mile delivery solutions can bring you more valuable leads and profits. However, if proper attention is not paid, the performance of last mile delivery can be severely harmed.
Customers expect on-time delivery and full transparency. A business model must also ensure that any last mile challenge does not result in dissatisfied customers. As a result, proper strategies for dealing with last mile challenges are required.
Optimizing the route is a tried-and-true strategy for successfully managing last mile delivery operations and overcoming last mile challenges. The following are some possible solutions to the problems:
- When the receiver has real-time tracking, the problem of failed deliveries is reduced.
- It becomes easier to plan routes for each day of the week.
- Because all necessary information is at hand, the delivery process becomes simple to manage.
- As the best delivery routes are provided, the need to go the extra mile to fulfill more deliveries is reduced. As a result, route optimization is a method of reducing last mile delivery challenges.
Now is the time to address the main question: how can last mile delivery routes be optimized?
How do I optimize Last Mile Delivery Routes?
The best thing about modern technology is how much easier it has made almost everything. The ability to access all complex data through a screen; the ability to handle last mile operations through mobile apps is the most significant benefit of modern software advancements.
That is where the route optimization solution can be found. Using good route optimization software, one can complete all required tasks and ensure same-day delivery.
The latest technological advancements are packed into an intelligent last mile delivery software. This complexity, however, is not meant to make it difficult. This is why the majority of intelligent route planners have an easy-to-use interface. They give you all of the necessary features and benefits, as mentioned in the importance of route optimization, without making the interface too difficult to understand.
Some excellent software solutions also include the ability to capture proof of delivery to ensure a theft-proof system.
A good last mile delivery management app is the key to striking the right balance between profit and customer satisfaction.
Frequently Asked Questions (FAQs)
How do you make delivery operations more efficient?
Setting up goals for effective delivery and then finding methods to achieve them one by one can help to optimize delivery operations. This could be accomplished by optimizing routes or planning deliveries.
What are the difficulties in putting last mile delivery in place?
The following are some of the obstacles to implementing last mile delivery:
- Last mile delivery has a high cost.
- Management of the supply chain
- Route optimization and planning
- Management of the delivery fleet
- Deliveries that go wrong
What factors contribute to the efficiency of a delivery service?
Implementing strategies to address the challenges of making a successful delivery makes delivery service more efficient. Orders can be prioritized based on their importance, and the delivery process can be planned accordingly.
What is the supply chain’s last mile?
The last mile refers to the final step in the supply chain’s overall process. When you place an order, it goes through a lot of steps. The last mile delivery is the final step in delivering that package.
Is last mile delivery financially viable?
The most important and expensive part of the supply chain is last mile delivery. However, with the right strategies in place to deal with the extra costs, significant profits can be made.
What can I do to make my last mile delivery better?
Checking the delivery route and delivery drivers can help improve last mile delivery. A strategic approach to providing drivers with a useful add-on via optimization software can help to improve the process.
Optimize your Delivery Routes with EasyRoutes by Roundtrip for Shopify
When it comes to the best route optimization software, EasyRoutes by Roundtrip is one of the most reliable options available.
For delivery companies on Shopify, EasyRoutes is the most recommended delivery management solution. It is used to efficiently plan and optimize delivery routes.
With EasyRoutes, businesses can concentrate on their core business operations.
Start a 14-day FREE Trial to learn more about the software, its features, and benefits, and to take your delivery business to the next level.