The rise of e-commerce has altered so many aspects of how companies do business, from consumer expectations to delivery timelines and everything in between. Increasing demand means businesses must process, handle, and move inventory quickly and efficiently to remain competitive. And a big piece of this puzzle relies on accommodating consumer demand for speedy delivery. Enter last mile logistics.
Last mile logistics refers to the last leg of delivery, in which products are transported from the warehousing company to their final destination. Last mile delivery and warehousing is an intricate, albeit pivotal, piece of the supply chain – requiring the right warehousing company to ensure delivery is as speedy and cost-effective as possible.
To stay on top of demand, companies are now implementing last-mile delivery and warehousing strategies to help them navigate complexities and streamline their logistics processes. Here’s a look at what’s going on in the last mile landscape, which is ripe with opportunity.
Warehousing Locations in Key Markets
Once upon a time, it was common practice for businesses to utilize larger warehouses located in exurban communities. With today’s demand for quick, two-day shipping, however, companies are reevaluating their strategy – seeking out warehousing services in the heart of key markets. Why? It puts their products closer to the end customer. This, in turn, does two things: it reduces last-mile delivery costs and allows businesses to keep up with the demand.
This phase of the supply chain can truly be the make-or-break point for businesses, impacting everything from brand perception to customer retention. Customer expectations will only continue to rise, which means an efficient last mile delivery and warehousing strategy will be essential to your business’s long-term success.
This increased focus on the last mile will not only cause long-standing changes to the supply chain, but will also require the role of carriers to evolve. Ensuring smoother delivery between business and consumer will require carriers to increase LTL trucking between local warehousing hubs to fuel inventory movement.
Warehousing Challenges: The Small Truck Dilemma
Last mile distribution is incredibly complex. These localized hubs rely heavily on a fleet of smaller delivery vehicles. And with smaller vehicles comes smaller shipment loads. When the goal is to maximize efficiency, this reliance on smaller vehicles presents a major challenge for last mile delivery.
For one, smaller vehicles will face difficulties accommodating larger items (Think: washing machines). From a cost and efficiency perspective, it’s also necessary for these vehicles to be fully packed and utilized for each run – a challenge in and of itself. There’s a lot of opportunity for new or smaller carriers to step up to the plate. Some companies are already working to retrofit specialty vehicles, using equipment like a straight truck liftgate to accommodate large parcels.
The Power of Automation
From warehousing technology to delivery drones, automation is completely transforming the world of logistics. Automation is already revolutionizing the warehousing space, helping streamline processes like inventory management. Technology-driven 3PLs are utilizing warehouse management software capable of integrating with IoT devices. This allows them to use predictive analytics to forecast demand and optimize inventory distribution. Over time, this can help minimize trip frequency, increase truck capacity, and improve the bottom line – especially during periods of fluctuation due to seasonality.
Fueling Visibility
Between innovative warehouse management systems and advanced GPS technology, businesses will be able to deliver enhanced visibility for tracking products while in transit. And the simple fact is this: a stronger product tracking system will lend to a stronger customer experience. Real-time tracking and automated notifications will also improve transparency and customer engagement throughout the delivery process.
In addition to tracking checkpoints, there’s an opportunity for businesses and their warehousing company to procure even greater visibility by affixing GPS probes to individual packages. This can prove to be incredibly valuable – particularly for time or temperature-sensitive items. There’s now even technology designed to gather data surrounding traffic and weather conditions across a delivery route. These insights can be leveraged to customize fulfillment and logistics processes – for example, determining the number of ice packs required per frozen product. In the long run, this will greatly minimize errors and improve accuracy, both of which are crucial for driving customer loyalty and repeat business.
Last Mile Delivery & Warehousing: The 3PL Way
Finding a 3PL with warehousing services near me can be a game-changer for your business. By outsourcing your logistics needs, your business can leverage the extensive network and expertise of a 3PL to decrease shipping costs and improve delivery speed.
At Smart Warehousing, we have the resources, technology, and experience to optimize your supply chain from start to finish, including your last mile delivery operations. We’ll handle all the complexities of your logistics, so you can focus on your business’s core competencies. To learn more about how we can help improve your last mile delivery while strengthening the customer experience, contact our team today.