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The following five techniques have proven to be especially effective for making last-mile delivery more efficient: 1.

However, building a more extensive network is expensive and has very high upfront costs, a long time to market, and high ongoing fixed costs. Many online retailers have experimented with different delivery logistics optimization techniques, including expanding the last-mile network to improve the delivery experience and adding more drivers, partners, and part-time contractors. Long story short, you should invest time and effort to keep your customers happy by optimizing last-mile delivery correctly, as it can lead to repeat business and loyal customers. Plus, the last-mile delivery route optimization will help you increase your top-line revenue.Īccording to a Capgemini report, 75% of customers will buy more of a retailer’s products if satisfied with its delivery service. So to reduce carbon footprint and transportation expenses, expedite deliveries, and improve customer satisfaction, you need to look for ways for optimization of last-mile delivery. The cost to deliver to or service an individual location can increase 2x-4x based on how narrow the promised time windows are.Īnd this problem is only getting worse as the rise of online orders has resulted in a dramatically higher demand for faster deliveries.Īlso, according to World Economic Forum, by 2030, there will be a 36% increase in delivery fleets in 100 major cities in the world which will cause carbon emissions to rise by 30%. And that’s because actual delivery costs are complex to compute when a business does its own deliveries.Īlso, the challenge with last-mile logistics is that you need to lower the delivery cost of each order while also showing up on time consistently and keeping your customers happy. The high costs of last-mile deliveries eat up profits because many eCommerce companies accidentally charge less than what it actually costs them to deliver orders. Last-mile delivery costs contribute to over 53% of the total cost of delivery, and around 28.2% of greenhouse gas (GHG) emissions are caused by fossil fuel burning for transportation. Because in addition to being key to the customer experience, last-mile delivery is also the most expensive and time-consuming part of the entire supply chain. Last-mile delivery optimization is critically important for any business with a delivery component and simultaneously wants to reduce greenhouse gas emissions.

Use A Route Planner with GPS Tracking Software Use Route Optimization Software for Last-Mile Delivery Optimization