Last mile delivery is the most frustrating leg of the shipping process – as well as the most expensive. In fact, the last mile makes up 40-50% of an organization’s total delivery cost on average, with expenses stemming from traffic and delays, a lack of real-time visibility, inefficient route planning, and more.
Between all of these challenges, it’s no wonder why businesses struggle to reduce their final mile costs while maintaining a smooth shipping experience. At Pyramid Logistics, we’ve seen how businesses can struggle to optimize their final mile, and have helped countless owners reduce those incessant costs for the past 25 years. Through a combination of deep shipping expertise and advanced software to monitor shipments, we help businesses overcome last mile delivery challenges that have plagued them for so long.
Learn more about common last mile delivery challenges, and how a logistics provider can guide you toward a solution.
Last Mile Delivery Challenges & Solutions
From finding employees you can trust to balancing the line between growth and quality, running a business is chock-full of challenges. However, one particular logistical obstacle tends to frustrate business owners of all shapes and sizes: last mile delivery challenges, and the high costs associated with them.
Last mile delivery is the most costly part of the shipping process, likely due to the many challenges attached to it. Traffic, excessive delivery costs, a lack of real-time visibility, and inefficient route planning tend to result in delayed shipments, which can make for higher end costs and result in dissatisfied customers. Thankfully, a trusted final mile logistics provider will have the knowledge and resources to respond to these challenges – reducing the risk for delays and additional costs in the process.
Traffic & Delays
Urban congestion and unexpected delays often impede timely deliveries, resulting in delays and the customer dissatisfaction that follows.
By leveraging dynamic routing driven by real-time traffic data, drivers can avoid congestion and closed roads, ensuring that deliveries experience no delays. Another solution to traffic and delays is offering flexible delivery windows. At Pyramid Logistics, we find that this provides a nice buffer when unanticipated delays occur.
High Delivery Costs
The last mile is the most costly part of the supply chain, making up 40-50% of an organization’s total delivery cost on average. This is due to a handful of factors, including labor, fuel, and vehicle expenses.
A good first step to combating these high costs is to employ route optimization, which can reduce distance and fuel expenses, and crowdsourced deliveries to further lower costs. Last mile logistics providers also have customized solutions tailored to client and cargo types, so we suggest consulting a final mile carrier if your last mile is proving too costly.
At the end of the day, the transporter often bears the costs in cases of failed, delayed, or rejected deliveries, highlighting the need for a trusted logistics partner when it comes to reducing overall last mile expenses.
Real-Time Visibility
Another major source of last mile frustration is a lack of real-time visibility into the delivery’s location, or estimated arrival. Without this information at their fingertips, end-customers or recipients won’t have the peace of mind knowing where their cargo is, and when it’ll arrive.
To keep recipients at ease, logistics providers such as Pyramid Logistics employ online tracking systems to provide status updates throughout the delivery process. This includes email and text updates notifying customers of their shipment’s progress. Ultimately, real-time visibility revolves around customer expectations – and managing those expectations is key.
Lack of Quality Software
Disjointed software and manual processes are two more last mile delivery challenges that can quickly lead to errors and headaches. Alongside real-time shipment tracking, logistics providers use integrated platforms to handle routing, dispatching, and more.
At Pyramid Logistics, we also have a state-of-the-art warehouse management system (WMS) that keeps your stored cargo safe leading up to delivery, while offering constant visibility into the status of your cargo. These types of accommodations are key when addressing last mile delivery challenges and expenses, seeing as up-to-date software streamlines processes and helps to prevent confusion or delays.
Inefficient Route Planning
Manual or basic route planning simply can’t meet the demands of the modern consumer. Nowadays, digitalization is necessary for businesses and logistics professionals to optimize routing in real-time, forecast weather conditions, determine vehicle availability, and other factors. Having the ability to update routes dynamically and rapidly adapt to changes creates tremendous value, but with basic route planning resources, those last mile costs will remain high.
While business owners may not have the tools to efficiently plan out delivery routes, they’re not without options. Partnering with a final mile logistics provider such as Pyramid will give you access to those tools, allowing you to bypass delays and lower your final mile risks and costs as a result.
Overcome Last Mile Delivery Challenges with Pyramid Logistics
Are traffic delays, a lack of software, or inefficient route planning eating into your shipping budget? Overcome those last mile delivery challenges with Pyramid Logistics, a trusted partner to some of the world’s most renowned brands for the past 25 years. For a glimpse into our work with brands such as Canon Medical and American Honda, visit our website and browse our recent case studies.
Located in Los Angeles, California, and Las Vegas, Nevada, Pyramid Logistics is equipped to deliver warehousing and logistics services near our facilities and nationwide. If you’d like to learn more about partnering with us, request a consultation by filling out a form on our website.