61% of delivery businesses believe the last mile is the most inefficient part of their supply chain. Consumer expectations are at an all-time high, and the last mile of e-commerce logistics may make or break your online retail business. Here are the top challenges businesses face across Europe in 2021:
Last-mile inefficiencies with high first-attempt delivery failures
Inefficiencies and a high first-attempt delivery failure result in added costs, delays, and customer frustration. The top reasons include inaccurate addresses, absent recipients, or delivery men overwhelmed by the volume of parcels during peak seasons.
This challenge can be solved by advanced address verification tools, proactive communication with customers regarding delivery times, and optimizing delivery routes to minimize the chances of failure. Leveraging technology, such as route optimization software, can help increase delivery success rates and efficiency.
High last-mile delivery costs
The delivery costs include not only fuel and vehicle maintenance but also the cost of labor and infrastructure required for efficient deliveries.
To address this, businesses can consolidate orders for delivery in the same area to minimize travel distance for quicker, more fuel-efficient deliveries. Implementing lean operations to streamline processes and reduce costs is also a key strategy.
Providing new services to customers
Customer expectations are constantly evolving. To stay competitive, companies should focus on the traditional aspects of delivery and explore value-added services to enhance the customer experience. This includes flexible delivery options like same-day, time-slot deliveries, easy returns and personalized packaging.
Seasonal demand fluctuations
E-commerce has busy seasons with more orders, like Black Friday, Cyber Monday, and Christmas. E-Commerce retailers need to scale up their delivery capacity to meet the surge in demand, while maintaining the same level of quality and efficiency.
Addressing this challenge effectively involves proactive planning, demand forecasting, and partnerships with third-party logistics providers. The collaboration leverages resources and networks to ensure continued efficiency during high-demand periods.
Get access to CIRRO Parcel’s delivery network
Transforming the last mile into a strategic advantage is no small feat. It requires investing in technology, lean operations, and robust infrastructure. But you can simplify the process by connecting with CIRRO Parcel!
We offer infrastructure and resources to navigate the complexities of last-mile logistics effectively, helping you succeed in an e-commerce landscape. With the right partnerships, your business can meet the high expectations of today’s consumers while keeping costs in check.
