A sharp decline in worldwide spending due to the COVID-19 pandemic completely changed the global fulfilment services industry. Initially, the purchasing power of consumers fell dramatically due to the loss of employment and asset value, but the post-pandemic world has finally turned out to be a phase of incoming bulk demand and revenge shopping in the e-commerce sector.
A MarketXcel survey named "The changing spectacle for celebrations" conducted just before Diwali revealed that 55% of respondents intended to purchase new clothes and accessories for their wardrobes. In Shopify's holiday outlook survey, more than 81% of consumers said they intended to purchase new clothing.
Due to the rising trend of revenge shopping overseas and in domestic markets, which essentially began in the post-pandemic era, e-tailer enterprises are finding it difficult to keep up with the unexpected increase in demand by managing their inventory and fulfilment centres. This blog may prove to be a true lifesaver for you if managing last-mile fulfilment for your retail firm is also stressing you out.
Challenges Faced in The Last Mile logistics
The term "last mile logistics" describes the last stage of the delivery process from a facility or distribution centre to the end customer. It is the most expensive and time-consuming component of delivery, accounting for up to 53% of the overall shipment cost, despite the fact that consumers desire free and quick shipping.
There are many challenges associated with last-mile delivery, including traffic congestion, limited parking, and difficulty manoeuvring in tight spaces. In addition, last-mile delivery often involves multiple stops, which can add time and complexity to the delivery process. As a result of these challenges, last-mile delivery can be significantly more expensive and time-consuming than traditional delivery methods.
Here are a few of the most fundamental challenges that online retailers face when providing last-mile delivery.
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Restricted visibility
The most crucial requirement for guaranteeing customer loyalty is transparency in delivery operations. Customers expect to be fully informed about the status of their packages and the estimated delivery time.
To be able to track the status of deliveries, some companies have started to issue tracking codes. But tracking codes are inadequate in a time when technology governs every part of our lives. Customers demand up-to-date location data for packages.
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Excessive delivery costs
For both customers and the company, last-mile delivery can be costly. Setting up an infrastructure to facilitate on-time deliveries can be expensive for the latter. Additionally, shipping and logistics businesses need to allocate funds for difficult routes, failed deliveries, additional stops along the delivery route, driver wages, and fleet maintenance.
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Delivery delays
It is one of the major difficulties that shipping and logistics businesses face. Businesses incur costs when they are unable to meet deadlines. Delays in delivery damage a brand's reputation, affect customer loyalty and hurt your business's bottom line.
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Inefficient technology
According to a SOTI analysis, for last-mile delivery, about half of all global logistics and transportation companies still rely on outdated technologies. In terms of avoiding delays and expensive shipping expenses, it is not very helpful.
5 Ways To Improve Retail Last-Mile Fulfillment In Order To Keep Up With Demand
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Improve the proximity between warehouses and customers
When comparing warehouses, keep in mind that proximity to your target market is just as important as leasing costs. The latter may wind up saving you substantially more money over time by reducing delivery expenses, time limitations, and fuel consumption. You should strategically distribute your warehouses and fulfilment centres to cover more ground and be closer to more clients.
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Route optimization for deliveries
Delivery times can be greatly reduced by carefully planning your route. As routes are updated in real-time, employing software to plan your routes not only saves time compared to doing so manually but also could result in fewer drivers being needed per route.
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Outsource your logistics to a 3PL
Outsourcing your logistics operations to a reputable and trustworthy 3PL supplier can prove to be a wise decision to help meet increasing demand. At incredibly low costs, logistics aggregators like NimbusPost offer warehouse and global fulfilment services combined with AI-powered solutions for logistics. The company works with 27+ different courier partners around the country, including Blue Dart, Delhivery, XpressBees, DTDC, and Shadowfax, to provide multiple logistics alternatives to e-tailer businesses.
The NimbusPost dashboard offers features such as an automated order verification system, an automated non-delivery report, a live shipment, order booking, post-purchase shipping alerts, and performance tracking. In order to prevent fraudulent orders, the platform also provides a fraud detection tool that makes use of AI and ML.
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Talk to your customers
Customers should be informed consistently during the delivery process about the status of their products. This assists both the customer and the driver by ensuring that the recipient will be present at the time and location of delivery.
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Allow customers to track deliveries in real-time
The practice of not providing tracking numbers to customers is no longer applicable to e-commerce companies. If you don't initially provide tracking information, customers will call your customer support line to ask about every delivery, which can quickly increase additional costs that could have been avoided.
Conclusion
Given the craze of revenge shopping among consumers in the post-pandemic era, retail businesses would have to prepare themselves for the sudden spike in demand, to excel in the competitive marketplace. By adopting the above tips, e-tailer businesses can easily overcome last-mile logistics delivery to satisfy their customers' needs during periods of high demand.
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