What Does the Future of Last-Mile Delivery Look Like?

Last Mile Delivery

What Does the Future of Last-Mile Delivery Look Like?

According to Redseer, the GDP share of India’s global road logistics is about 8%, and by 2024, market analysts predict earnings to reach $6 billion.

But economical and environmentally friendly options must be developed, since “last mile” delivery – which accounts for 20 percent of the chain’s overall costs – is the most costly.

When you move closer to the final client, the unit transport expenses are frequently the highest, even if the initial few kilometers are properly regulated. Since the unit cost of transportation rises as the product approaches its destination, the last mile is when it reaches its highest level.

The harsh reality is that the last kilometer is the most expensive. It accounts for around 20% of the nation’s traffic, 30% of the road system, and 25% of greenhouse gas emissions.

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Quick and demanding E-commerce

Because delivery and online purchases, which currently account for 80% of the number of goods shipped, are synonymous with e-commerce. And for newcomers to the industry, this is one of the major problems. Particularly now that express (delivery in 24/48 hours) is solidifying its position as a genuine selling factor and is virtually a norm.

Many measures are now being implemented to reduce the detrimental effects of this last mile. Therefore, it is essential to implement efficient and innovative solutions.

Increase in the number of packages to be delivered

It is now a fact that consumer habits and purchasing patterns are evolving. Consumers are placing more low-volume orders due to the growth of online commerce and their desire for immediate gratification. With more and more packages needing to be delivered to end users, this new phenomenon is boosting the flow of commodities.

This is the first challenge of the last mile for logisticians! Food deliveries are no exception. Consumers avoid going to supermarkets on busy days and regularly order their groceries online. Orders are usually processed during the week for home delivery in a few days or even hours.

25% of the CO2 emissions in urban areas

The utilization of carriers’ information systems and the reception capabilities of relay stations resulted in an average delivery of ten tonnes of products and 100 packages per day, serving 80% of the population.

They are unquestionably advantageous economically since this approach restricts the number of stops that deliverers may make (15 stops on average) for pick according to Ifop, relay stations are the primary distribution method for 50% of Internet subscribers. The last mile has probably changed more over the past three years than it has over the preceding three decades put together.

At a time when reducing greenhouse gases is a topic of increasing discussion, freight transport accounts for 25% of CO2 emissions in the city, especially in urban areas will continue, along with the introduction of new models, in the years to come. Consumers are giving more and more weight to the ethical approach of retailers in the context of global warming. This is why retail businesses, who contribute significantly to harmful emissions in cities, are now focusing on improving their environmental footprint.

Freight pooling

In order to meet customer demand, market volatility will continue to be a concern for shippers and carriers. In order to secure speedier delivery of their goods, shippers with less-than-truckload-size cargoes pay for full truckload (FTL) service, which results in inefficient use of space and money. As a result, there are more delivery vehicles, their routes are longer, and more stops are made.

Shipping companies must prepare for lower volumes of orders that fall into the volume LTL range and assess pricing depending on the amount of truck capacity they require. Between these two factors, there is frequently a wide gap, which is where pooling comes into play.

This is especially true given that e-commerce expansion has led to an increase in delivery and a decrease in package size. For carriers with loads that fall between FTL and LTL, consolidating saves unused space in trucks by packing them with freight from other shippers. One of the greatest advantages of all is still unaddressed, and that is cost savings.

A promising development

The number of plots will keep growing at a pace of 20 percent yearly. It will be necessary to find solutions to stop the last mile from becoming a catastrophe for the environment. E-commerce will grow, but so will the fragmented in-store deliveries and hybrid forms of product flow brought about by omnichannel logic.

Flows will keep accelerating. Although currently small, the D-Day segment – order in the morning, delivery in the evening – will likely account for 20 to 25 percent of the market.

As just-in-time deliveries (ship-from-store) grow more common, stores will become the primary urban logistics network locations. Due to the fact that the last mile’s value is primarily commercial, its cost will keep decreasing.

The race only finishes on the road

To reduce air pollution, several programs during the previous years have tended to promote less polluting forms of transportation. However, trains, air, and rivers are manifestly useless for direct delivery to shops or individuals. As a result, home delivery has emerged as an extremely optimistic market for road transportation.

Electric & E-commerce

However, this pooling, which is based on standardized, open, and shared technologies has benefits: the fact that it also makes it conceivable to enhance cohabitation with neighbors by significantly lowering the number of deliveries and the ensuing issues.

These factors are growing urbanization, which will result in half of the world’s population living in cities by the end of the century, and the growth of e-commerce, which fragments deliveries.

And a different business model must prevail in order to minimize the additional cost by sharing its platforms and the usage of trucking services with others in order to reduce expenses.  In all instances, preference should be given to electric cars (or non-polluting vehicles), the pooling of delivery means, and the socio-economic expenses paid by cities (air pollution, noise, and congestion).

India's last-mile and e-commerce growth

India’s delivery environment has undergone a great deal of change during the last few decades. A new delivery industry, the last-mile delivery ecosystem, has emerged in response to the growing demand for local goods and an unanticipated increase in last-mile delivery.

The last-mile delivery industry in India is developing comparably to that in China and the United States, where coverage is now above 10%. By 2024, India is projected to reach a market size of $6-7 billion if its rapid expansion continues.

The difficulties that logistics providers need to stay on top of to prepare for the future of last-mile delivery include understanding industry trends, inefficiencies in your current operations, analyzing expenses, and being aware of what action items need to be handled in the future.

Companies need to plan and scale up how they will decarbonize their delivery fleets in a way that is “socially just” and compatible with environmental and climate responsibility and responsibilities, given that the Indian ecosystem is predicted to vastly expand in terms of business.

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6 Tips on Optimizing the Last-Mile Delivery with Software Solutions

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6 Tips on Optimizing the Last-Mile Delivery with Software Solutions

Last-mile delivery is a crucial procedure in the supply chain. Customers expect a memorable delivery experience, including where you’d drop their items, the waiting time, and the overall delivery costs. When done right, your last-mile delivery operations can scale your business. Otherwise, it would make customers shift to your competition.

According to a report by Yahoo Finance, the last-mile delivery market is expected to grow by over $146 billion from 2021 to 2025, with a CAGR of 15.06%. This means you need to optimize your last-mile delivery solutions to keep your business going. Now, what are the advantages of improving your last-mile delivery?  

Improving your last-mile processes in modern-day delivery operations can help reduce wastage and the cost of operations. It can also increase customer satisfaction and help generate more revenue. To overcome last-mile delivery challenges and bring the best services to your customers, follow the best practices below

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Centralize all your logistics data.

When getting a last-mile solution, make sure all your data is centralized. You should be able to see inventory availability and deadlines on a single dashboard. Other things that could be available on your software are safety concerns, cost overruns, and delays. Whatever insight you need to make your last-mile delivery process faster, it should be on your software.

It’s a bonus if you can see essential data analytics and metrics, such as the cost per case, customer preferences, and cost per delivery. Having all information in place will help you see last-mile delivery trends and opportunities and evaluate which areas of your service need improvement.

Control and automate your last-mile delivery process.

Automation is the key to fully optimizing your last-mile delivery process. It promotes efficiency, saves time, brings better customer service, and improves your overall performance. Some of the operations you can automate using your software include:

Optimize and improve your customer management.

Excellent customer service should be the core of your last-mile delivery goals. After all, your customers determine your delivery success. To improve customer management, you can provide the following services:

Empower your drivers.

Delivering an optimal customer experience starts with your team, including your drivers. For example, in the case of delivery route changes or potential delays, your drivers should always be kept in the loop. You should also monitor their performance or have a motor vehicle record background check to ensure that they can meet the turnaround time and deliver safely.  

The bottom line is your drivers shouldn’t get all the blame whenever there are lapses on your last-mile delivery. So, make sure you’re clearly communicating with them. Ask what are some of the challenges they’ve encountered during the delivery process and provide solutions when necessary. If your drivers become unhappy with their jobs, it might affect their retention and loyalty to your company.

Take advantage of the “locals.”

Have you ever thought of outsourcing your last-mile delivery process to local carriers or using local stores as distribution centers? For the best last-mile optimization, you should take advantage of the locals.

Most new businesses prefer outsourcing their delivery operations to local carriers because they’re more reliable and knowledgeable of the local area. Local carriers also work with lower delivery volumes; hence, a quicker and more efficient delivery.

On the other hand, using local stores as depot sites also helps you minimize the resource requirements for setting up supply chains. It also enables you to easily increase the number of depot sites in different destination zones, making it more convenient to plan pick-ups and drop-offs while keeping costs at a minimum.

Choose the right last-mile delivery software.

Of course, all the best practices above wouldn’t be possible if you don’t know how to choose the right software for your delivery operations. To select the best ERP software companies, determine what needs to be optimized in your last-mile delivery. List down all possible challenges and opportunities. The logic is that getting software should serve as a solution to your problems, not a new or added burden.

The Future of Last-Mile Delivery

The e-commerce landscape is continuously evolving, and customer expectations are also growing higher. Hence, it’s crucial to keep up with the competition, be prepared for the changing of the tides, and learn how to improve last-mile delivery. Why settle for less when you can go the extra mile in your services? Find the best last-mile solutions on the market to improve your delivery process and overall customer service.

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6 Steps to Enhance Parcel Delivery Optimization in Last Mile

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6 Steps to Enhance Parcel Delivery Optimization in Last Mile

Change is driven by technology in practically every industry, and parcel delivery is no exception. Businesses will need to move quickly to be competitive in this ever-expanding, computerized economy. Parcel delivery is no exception: parcel and logistics companies must concentrate on optimizing their efforts for last-mile delivery to be successful. 

The question is: where do you start?

Before beginning any delivery optimization process, companies must first determine where their efficiency gaps are and what adjustments will have the most impact on last-mile profitability. 

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Parcel Delivery Optimization in 6 Easy Steps

From the time orders are accepted to the time items are delivered, there are six steps that make up a universal process for these businesses.

Orders and tasks should be entered into a centralized system

The initial step, as with most things, is the most crucial. While different parcel delivery firms have varied protocols for how orders and delivery tasks enter their systems, it’s critical that they all wind up in a centralized system and those deliveries that will be assigned to drivers (rather than outsourced to a third party) be clearly noted. 

This can be done with the correct technology by uploading a CSV or via an API. 

Task Dispatch and Routes should be optimized

When orders and tasks are submitted into the system, it’s vital that the tasks are assigned using the most efficient pathways. Automating this process with competent dispatch software is the only scalable alternative for a large organization that makes thousands, hundreds of thousands, or even millions of deliveries every month. 

Inputting jobs and assigning them at the start of the day, before drivers start their shifts, enabling them to see their full route before they arrive at work. 

Sort the parcels that have been marked for local delivery

Although third-party logistics companies frequently use local partners to perform their last-mile deliveries, a portion of those deliveries are made by the company itself. These things must be efficiently separated from the rest of the shipments in order to be placed onto the appropriate vehicles and transported to their final destination. 

This necessitates the use of specific bar codes that can be scanned to determine which packages are delivered locally and which are assigned externally. 

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Before loading any items, scan them all

In order to have complete supply chain visibility, the last mile must not be a blind spot in the chain. All items must be scanned before being loaded onto vehicles in order for effective parcel delivery optimization to occur. A central system can track which items are on which vehicles and where they are on their trips in this way.

Customer Engagement and Visibility at the Last Mile

Visibility is thought to be the number one driver of logistics innovation today. In this scenario, visibility can refer to both internal (as indicated above) and external (the visibility a customer has over their delivery). 

Customers in the Uber era have come to anticipate a level of visibility that was previously unavailable. One of the most important features of this type of experience is a real-time map accessible by cell phone, which allows the consumer to track the driver’s progress and know exactly when they will arrive. Engagement is also important in this paradigm. The ability to communicate directly with the driver, such as leaving notes such as “don’t ring the doorbell,” reduces friction and improves efficiency.

Have a solid proof-of-delivery procedure in place

With such a high volume of deliveries, it’s critical that verifiable records are retained when proof of delivery is used. This includes requiring a driver to obtain a signature and scan a bar code before leaving the delivery place. This data is then logged and transferred to a central system. If the client claims that the item was not delivered at any time, the corporation has proof. 

Enabling last-mile delivery & logistics for E-commerce

Are you looking for a quick way to track orders in real-time, as well as last-mile delivery and e-commerce services? Using the intelligent MIMO application framework, MIMO has efficient end-to-end Transhipment logistics. The framework manages and optimizes last-mile delivery & e-commerce logistics across the entire distribution chain for your back-end functions with transparency and seamless integration. 

Successful management of the transportation distribution process is becoming increasingly important nowadays. MIMO Technologies offers a tech-enabled platform to easily transport goods and products and achieve a high degree of precision in e-commerce and last-mile delivery. 

Our field officers are qualified to complete deadline-oriented work and deliver it to your customer in India’s most remote locations within pre-determined timelines. More than 14000 field officers serve in various rural and semi-urban areas.

Why choose MIMO for last-mile delivery?

The most critical part of the supply chain business is last-mile distribution. From quick real-time order monitoring and timely updates to smooth delivery, our tech-enabled platform ensures on-time deliveries.  

Our team consists of highly skilled professionals who are drawn to deadline-oriented work and can move your products from your warehouse to your customer in the most remote locations within pre-determined timelines. 

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5 key characteristics of successful on-demand delivery services

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5 key characteristics of successful on-demand delivery services

Companies must examine which “must have elements” are lacking from their delivery services in today’s on-demand delivery industry in order to reduce delivery costs and create better client experiences. 

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Successful on-demand delivery services include the following characteristics

Convenient Scheduling and Accurate Delivery Quotes

At checkout, any firm that sells products online should provide simple and accurate fulfilment alternatives. This contains the location and time of the delivery or pickup. It’s not easy to ensure these timeframes are precise; you’ll need to know everything from inventory location to fleet availability. For e.g. Is there enough automobile space for curbside pickup at that time? 

 

Automation is a tool that allows you to give users with immediate quotations. Of course, you must first verify that you have the appropriate delivery timeframes (e.g., short delivery windows, same-day delivery) and fulfilment alternatives (curbside, click and collect, same-day delivery) in place. 

On-demand delivery and fulfilment management that is coordinated and flexible

From the minute an order is made to the moment it arrives at your customer’s door, the whole delivery process must be organized, digitized, and synchronized from start to finish. You must have insight over the whole last mile flow, for all fulfilment models, in order to save operating expenses. That way, you’ll be able to figure out how to make the most of your existing resources and delivery providers to handle on-demand deliveries. 

 

To accomplish same-day pickup of retail orders, for example, you must first determine where inventory is accessible locally, then source orders to the relevant location and have retail personnel locate the item in time for pickup. 

The same is true for ship from store orders: store inventory, retail employees, and drivers (including external fleets) must all be in sync, which necessitates centralizing all data. This is especially true if you collaborate with a variety of aggregators or delivery service providers. 

Integrating third party delivery services

Successful on-demand delivery services refer to the capacity to satisfy client demand at any time of the day or year. Brands must be able to respond rapidly to consumer requirements and, where required, supplement drivers. This is when the use of third-party delivery services comes in handy. Brands can improve their on-demand (and planned) deliveries, increase brand exposure, and maintain high customer satisfaction by incorporating third-party delivery solutions into their existing fleet management systems. A third-party distribution hub can be used to construct a delivery network and distribute orders based on their business needs. 

Automation

In today’s on-demand culture, time is not just money; it is also the most valuable commodity. You’ll lose a customer if you can’t get an order to them promptly.  This is why automation must be built into every part of the on-demand delivery process, from backend systems to communications with managers, drivers, and customers. 

Automation is the most efficient and dependable approach to conduct cost-effective delivery operations while still providing a fantastic client experience. 

 

Based on business rules relating to cost, volume, and other business goals, an automated dispatching and routing system can determine whether to dispatch an order to an in-house driver, a crowdsourced delivery fleet, or another delivery provider. The system may also make decisions on its own, such as extending delivery timeframes or providing other delivery alternatives. 

 

All of these choices must be made in real time, which involves the use of automation technologies and real-time integration of all of your systems, including those of your external suppliers. 

Orders that can be fulfilled locally via ship-from-store and in-store pickup.

Reduce shipping costs by making use of local inventories. Understand where and when each delivery option and its linked systems (inventory, warehouse, transportation management systems) will be the most cost-effective using data and data analytics. Then, in order to provide lower shipping costs – or no price at all – in competitive time frames, build your on-demand delivery processes and resources (inventory, drivers, fleets, and other teams) and systems accordingly.

How can MIMO help?

Effective fleet management and last-mile delivery optimization will help you make fast hyperlocal deliveries, whether you are an e-commerce vendor or a local delivery service. So, are you ready to use last-mile delivery tools to boost the quality of your on-demand delivery services? MIMO can help your business come online with the best hyperlocal delivery services in the region.  

 

Successful management of the transportation distribution process is becoming increasingly important nowadays. MIMO Technologies offers a tech-enabled platform to easily transport goods and products and achieve a high degree of precision in e-commerce and hyper-local delivery. 

 

Our field officers are qualified to complete deadline-oriented work and deliver it to your customer in India’s most remote locations within pre-determined timelines. More than 14000 field officers serve in various rural and semi-urban areas.

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5 Key Optimization Areas In Last-Mile Delivery

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5 Key Optimization Areas In Last-Mile Delivery

Last-mile delivery has become the backbone of faster logistics. As the world continues to push for a more e-commerce enabled business ecosystem, delivery operations became the make-or-break aspect of any good online transaction.

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So, what is it?

Last-mile delivery has become the backbone of faster logistics. As the world continues to push for a more e-commerce enabled business ecosystem, delivery operations became the make-or-break aspect of any good online transaction. Last-mile delivery is the last stretch of a logistics workflow. It involves getting a package or parcel from a central warehouse to a customer’s door.

Today, logistics companies are turning to third-party drivers to offer this service, which dramatically empowered a whole new gig economy of riders who speed up delivery times in most cases. Last-mile delivery did more than just provide more jobs. It also gave consumers a more streamlined way of service when receiving deliveries. These benefits play into food deliveries, online order deliveries, and so on.

 

The last-mile delivery market grew to $18.7 billion in 2020. That number will only exponentially grow with time. But individual last-mile operations need to flourish to maximize this uptrend. So let’s look at some last-mile delivery challenges and the 5 critical areas that crucial stakeholders should optimize for growth and efficiency.

Route optimization and tracking

One of the biggest challenges in last-mile delivery is cost optimization. Petroleum and vehicle maintenance prices continue to rise.

One of the biggest challenges in last-mile delivery is cost optimization. Petroleum and vehicle maintenance prices continue to rise.

To curb the rising costs, logistics companies and riders should leverage technology by optimizing routes. Through artificial intelligence (AI) and advanced trackers, some last-mile software tools can help plan out shorter routes, determine high-traffic choke points and the best sequence of deliveries to help shorten travel times and lower costs involved.

 

With last-mile delivery tracking, customers also get a better sense of where their deliveries are. Grab has been a great example of this as it gives a real-time tracking system for people to know where their riders are and provide estimates on delivery times.

Task management

Another key to better optimization is better task management. For example, control centers need to assign deliveries better and track progress when handling supply chain operations. Task management software for last-mile delivery businesses provides better evaluation systems for their riders, giving a more concrete measurement of performance.

Some metrics to measure include delivery times per kilometer traveled, number of deliveries per period, complaints, unfulfilled delivery rates, and so on. 

 

Good task management can also improve delivery times. It allows riders to give and get real-time updates on relevant information like directions, customer contact details, and special requests

Driver incentives management

There’s a growing demand for last-mile delivery. But the challenge lies in finding the right riders. According to 37.8% of last-mile shipping companies, finding qualified drivers remains the most significant challenge. Meaning companies aren’t just finding it hard to find talent. It’s also hard to find and retain the best ones.

 

Given the current logistics careers salary rate, more people could shift towards third-party relationships soon. But since there are no fixed salaries, riders should stay motivated to perform. This issue can be challenging when depending on per output setups, but incentives and milestone systems can attract the best talent and help retain them over the long term.

Payment gateways and options

A key to last-mile delivery logistics solutions in this age of cash-on-delivery and e-wallet systems is a flawless payment gateway solution. In addition, more people are shifting towards digital payment setups for their purchases. With that, people will focus more on digital payments. 

 

The key is to provide as many payment channels as possible. The staples will be credit cards and e-wallets, but there is also a growing trend in cryptocurrency payments. 

Effective Ways to Improve Cash Collections and ensure timely Payment Settlements

  Selecting a payment gateway with minimal fees and fewer downtimes should be the non-negotiables for any

  last-mile delivery. These could present issues in day-to-day operations and add unwanted issues.

Customer service channels

Expecting that all things will go right in any business is wishful thinking. So the last part of last-mile delivery optimization is creating reliable customer service channels. Issues can happen at any point, from wrong parcel delivery, payment issues, or experiences with bad drivers. An effective last-mile delivery operation should have proper customer service channels for these instances. 

 

Deploy email and chat support at the very least for these types of concerns. In some cases, you can also outsource to a customer service BPO if you have a large operation. 

 

Providing phone support isn’t always easy. But 40% of customers would want to talk to someone on the phone for complicated disputes, it’s an excellent option to provide.

Last-mile Delivery an Enabler of Better Commerce

E-commerce introduced a new way of consuming and getting products. Without better deliveries, that wouldn’t have happened. Improved logistics through last-mile deliveries did a great deal to push the boundaries of commerce. It saved businesses when economies and public places closed and provided millions of jobs. 

 

It’s safe to say that last-mile delivery is a significant part of business operations today. And it will continue to grow in time as people adapt to digital commerce more and more.

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How Last-Mile Software Solutions can help you overcome Business Challenges

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How Last-Mile Software Solutions can help you overcome Business Challenges

Last-mile delivery logistics solutions are typically used by delivery companies or company departments tasked with managing delivery schedules. A well-designed bespoke delivery system can help a company save money while also improving its image. A business runner who adopts last-mile transportation technology for their organization reaps a slew of other advantages. 

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Last-mile fulfilment offers a variety of benefits to your company, including:

Process of Adaptive Delivery

When you use last mile software for your business, you remove the problems that come with adapting to the needs of your customers. Even after the shipment has been shipped, modern clients frequently request adjustments to the delivery terms (such as modifying the delivery time or destination location). You don’t have to worry about alerting drivers, adjusting routes, or maximizing vehicle resources with a last-mile delivery app since the system performs all of that for you, making transportation seamless and adaptable. 

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Productivity Improvements

The deployment of a last-mile transportation system boosts overall productivity dramatically. It automates repetitive, time-consuming activities, allowing humans to focus on more difficult tasks. It also aids in the creation of optimum delivery routes, allowing the average number of deliveries per day to increase. 

Increasing Profitability

Profits rise in tandem with increased productivity. Improved delivery services attract new consumers on a regular basis, increasing the company’s reputation and bringing in more earnings. Furthermore, operating expenses are reduced dramatically with automation and labour redirection, making a firm even more cost-effective.

Transportation Process Improvements

 Last mile delivery technology optimizes the transportation process by rearranging repeated tasks into more efficient sequences, decreasing truck loading and shipping time and effort. Furthermore, optimization avoids idling and delays, resulting in the most efficient transportation plan for your company. 

Business owners should engage specialist experts and explore important areas of interest before beginning delivery software development to gain a true picture of their own competitive prospects. The following are the most important considerations:

Analyze the business and the market

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Every successful project begins with thorough market research and business analysis. A business runner gains the essential background information for building their own profitable company strategy by researching the current market situation, global/local leaders, trends, and tendencies. Business analysis, on the other hand, aids in identifying all potential strengths and flaws in the existing project plan and correcting it before it becomes mired in problems. 

Legal Obligations

When it comes to last-mile transportation, a business runner should remember to follow all local rules and regulations. The legal system differs from nation to country, and sometimes even from state to state, so if you do business in many locations, you should be aware of local variances. Legal compliance can be handled manually (for small businesses) or using last-mile logistics software (for enterprises). 

A Reliable Tracking System

Prioritizing the use of effective tracking technology is critical since it enhances and transparentizes the complete last-mile logistics management process, considerably lowering the risk of package damage or theft. Checkpoint updates, bar code tracking, RFID (radio-frequency identification), and GPS tracking are all common tracking models. GPS trackers are the most exact and trustworthy, but if you’re on a budget, tracking at each checkpoint may be a more cost-effective alternative. 

Data Protection for Users

Data security is one of the most essential considerations you should make before building your own last-mile delivery system. Take into account the most recent cybersecurity recommendations and regulations to ensure that user data is kept safe. Provide your customers with a variety of authentication options, such as logging in with their phone number and password, biometry (fingerprint, face, or voice ID), or a Google/Facebook/other social network account. 

A reliable software provider

Half of your app’s success depends on partnering with a reputable distribution software provider, so be cautious when selecting a development team for future collaboration.

How can MIMO help?

Effective field management and last-mile delivery optimization can help you make faster deliveries. So, are you ready to improve the efficiency of your last-mile distribution network? MIMO can assist your company in going online by providing the best last-mile services in the region. 

 

The ability to effectively manage the transportation delivery process is becoming increasingly necessary in today’s world. MIMO Technologies provides a technologically advanced platform for efficiently transporting goods and items and achieving high levels of accuracy in last-mile delivery. 

 

Our field officers are trained to complete time-sensitive work and deliver it to your customer in India’s most remote locations within agreed-upon deadlines. Over 14000 field officers work in a variety of rural and semi-urban settings. 

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Everything you need to know about Hyperlocal delivery-Marketplace, Challenges, and Process

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Everything you need to know about Hyperlocal delivery-Marketplace, Challenges, and Process

The way individuals purchase and businesses deliver has changed as a result of technological advancements. Customers are spoilt with numerous options in this era of speedier and more efficient delivery. They have complete control over when and where the order is delivered. Consumer expectations are growing, forcing firms to rethink their delivery methods and rely on technology to make them work. Hyperlocal delivery is the newest trend, after next-day and same-day deliveries. A company can select a hyperlocal delivery strategy based on its delivery needs. 

 

The hyperlocal delivery business is anticipated to reach $3634.3 billion by 2027, according to online reports. During the projection period, the market is expected to increase at a compound yearly growth rate of 17.9%. 

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What Does Hyperlocal Delivery Mean?

Do you have any plans to establish a hyperlocal delivery strategy in your company? Understanding what hyperlocal delivery is is the first step on this path. Hyperlocal delivery is defined as picking up products or items from a vendor and delivering them directly to customers’ doorsteps. This form of delivery strategy links local retailers and vendors with customers and is limited to a certain territory, location, or pin code. 

 

Let’s look at an example to better grasp hyperlocal delivery. If a consumer requires a certain product or item, they may simply go to an online store and place an order. Not all e-commerce suppliers, however, can deliver it in one or two hours. Hyperlocal delivery enters the picture at this point. A nearby vendor or merchant can quickly accept the order and deliver the goods, culminating in a one- or two-hour delivery period. 

What is the process of hyperlocal delivery?

A consumer puts an online or physical order with a local retailer. When the vendor accepts the order, a driver (either from a third-party hyperlocal delivery service provider or from within the company) picks up the item from the store and delivers it to the customer’s address. 

Which firms may benefit from a hyperlocal delivery model?

As previously stated, hyperlocal delivery may be made within a certain geographical area and time frame. As a result, it’s suitable for food delivery, grocery delivery, pharmacies, vegetable and fruit delivery, and pharmaceutical delivery, among other things. Such organizations are able to receive orders and deliver them quickly.

Hyperlocal Marketplace

A hyperlocal marketplace provides local retailers or sellers with delivery services. It has the necessary resources, such as a fleet and drivers, to pick up and deliver items to specific consumers. Hyperlocal marketplaces assist retailers in delivering items quickly and easily, allowing them to reach new heights. Such firms can provide a variety of things in the smallest amount of time, including groceries, meals, medications, and a variety of other items (in even less than an hour). 

Hyperlocal Delivery Model Benefits

Local stores are struggling to survive and thrive in this digital era, as enterprises migrate to online platforms. All of these stores are benefiting from the hyperlocal delivery strategy, which is helping them stay afloat in the sector and grow their client base. Aside from that, the hyperlocal delivery model has a slew of additional advantages, including: 

What is the best way to create a hyperlocal delivery network?

If you wish to provide hyperlocal delivery services, follow these steps to get your delivery network up and running: 

Overcoming the Challenges of Hyperlocal Delivery

By automating their procedures, hyperlocal delivery firms can alleviate the challenges connected with hyperlocal shopping, hyperlocal logistics, and hyperlocal food delivery. Yes, incorporating hyperlocal delivery software is a great way for a hyperlocal delivery service provider to stand out and overcome other delivery-related challenges without having to spend more money. 

 

Meeting customers’ expectations with the proper products/services at their chosen time and place is critical to any business’s success. And, in order to reach this aim, both online and offline retailers are using technology into their delivery processes. As a result, a new delivery trend known as hyperlocal delivery has emerged. Food, vegetables, fruits, medicines, groceries, and other items can all be delivered using this model. 

How can MIMO help?

Route planning and last-mile distribution optimization are critical in pandemic situations to ensure smooth operations. Field staff and courier agents should be able to monitor their orders in real-time, ensuring that customers receive their orders on time.  

 

Effective fleet management and last-mile delivery optimization will help you make fast hyperlocal deliveries, whether you are an e-commerce vendor or a local delivery service. So, are you ready to use last-mile delivery tools to boost the quality of your hyperlocal deliveries? MIMO can help your business come online with the best hyperlocal delivery services in the region.   

Successful management of the transportation distribution process is becoming increasingly important nowadays. MIMO Technologies offers a tech-enabled platform to easily transport goods and products and achieve a high degree of precision in e-commerce and hyper-local delivery.  

 

Our field officers are qualified to complete deadline-oriented work and deliver it to your customer in India’s most remote locations within pre-determined timelines. More than 14000 field officers serve in various rural and semi-urban areas.  

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Evolution of Hyper-Local delivery Services in the era of COVID-19 Pandemic

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Evolution of Hyper-Local delivery Services in the era of COVID-19 Pandemic

In this age of rapidly changing technology, numerous hyperlocal delivery companies and organizations are bolstering their services to suit the demands of consumers who want things to be delivered instantly and at their doorstep. 

 

Hyperlocal delivery services have expanded in popularity over the previous several years, with the major domains seeing increased demand in food, groceries, household essentials, and pharmaceuticals. In reality, the hyperlocal delivery industry in India received $2 billion in investment in 2017-18, and $1 billion by the end of 2019. 

 

Zomato, Swiggy, UrbanClap, BigBakset, and 1mg, among others, have become household brands in the hyperlocal delivery market. 

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Pandemic-induced disruption

Surprisingly, although the globe has been gripped by the coronavirus pandemic, which has shattered many economies, the hyperlocal delivery industry has been steadily growing despite the early challenges created by the COVID-19. 

 

The main driver of development may be linked to consumer behavior, which has shifted as a result of the coronavirus fear, and now they prefer to have everything at their fingertips and within walking distance without having to venture far. 

 

Not only that, but investor interest in this sector remains strong, with $533 million invested until November 2020. According to Tracxn statistics, the sector received $1.7 billion in investment in 2018. 

The Gig Economy

The gig economy lies at the heart of the development and success of on-demand platforms.Hiring, training, and maintaining permanent delivery employees in an environment that is more or less flexible has proven untenable in the past for startups. According to a BCG research, India’s gig economy has the potential to create 90 million jobs and generate $250 billion in revenue. 

 

These remarkable figures might be attained more sustainably if additional possibilities were created. Despite greater instances, the second wave of Covid has seen less migrations from cities and towns to countryside, as individuals have more options to earn and support themselves and their families. The hyperlocal delivery segment’s continued development is mostly due to the availability of riders for deliveries. 

Evolution of Hyper-local delivery during Pandemic

The consumer expectation of quick deliveries has been a tipping point in e-commerce. It’s no longer a benefit, and waiting for your packages to arrive as soon as you place an order is no longer a big deal. Another possible side effect of the pandemic is that the expectation of rapid deliveries has led to a lot of supply chain innovation. 

 

While hyper-local delivery has been a difficulty for numerous e-commerce and hyperlocal firms, technology has enabled them to find effective and accessible alternatives. Routing, batching, demand prediction, and rider allocation have all benefited from AI and machine learning techniques. The extra logistical benefit of strategically situated distribution centers and flexible warehousing brings companies closer to the final customer and makes hyperlocal more viable than ever before. 

The hyperlocal delivery sector has a long way to go.

Hyperlocal became one of the most important services to emerge from the epidemic, particularly for the transportation of vital commodities. Because it is a capital-intensive industry, the market’s previously established participants have consolidated as demand has increased. With companies like Zomato and Swiggy entering the market and quickly expanding, the industry has seen significant development and serves as a case study for how Indian businesses are adapting. 

 

With the growth of e-commerce in the country, many products must be delivered promptly within a certain radius of an area. With a hyperlocal delivery startup, this is incredibly simple to accomplish. Given how readily shipping behemoths have penetrated the nation, India most certainly has the infrastructure for this. In terms of growth, it took a pandemic to realize the importance of these businesses, and they have experienced exponential development as a result of the demand produced during this time. 

 

Going forward, the hyperlocal delivery area will continue to grow, particularly at a time when the COVID-19 fear is widespread and many customers have become accustomed to getting essentials at the click of a button. 

The hyperlocal delivery sector has a long way to go.

Hyperlocal became one of the most important services to emerge from the epidemic, particularly for the transportation of vital commodities. Because it is a capital-intensive industry, the market’s previously established participants have consolidated as demand has increased. With companies like Zomato and Swiggy entering the market and quickly expanding, the industry has seen significant development and serves as a case study for how Indian businesses are adapting. 

 

With the growth of e-commerce in the country, many products must be delivered promptly within a certain radius of an area. With a hyperlocal delivery startup, this is incredibly simple to accomplish. Given how readily shipping behemoths have penetrated the nation, India most certainly has the infrastructure for this. In terms of growth, it took a pandemic to realize the importance of these businesses, and they have experienced exponential development as a result of the demand produced during this time.

 

Going forward, the hyperlocal delivery area will continue to grow, particularly at a time when the COVID-19 fear is widespread and many customers have become accustomed to getting essentials at the click of a button. 

 

How can MIMO help?

Route planning and last-mile distribution optimization are critical in pandemic situations to ensure smooth operations. Field staff and courier agents should be able to monitor their orders in real-time, ensuring that customers receive their orders on time. 

 

Effective fleet management and last-mile delivery optimization will help you make fast hyperlocal deliveries, whether you are an e-commerce vendor or a local delivery service. So, are you ready to use last-mile delivery tools to boost the quality of your hyperlocal deliveries? MIMO can help your business come online with the best hyperlocal delivery services in the region.  

 

Successful management of the transportation distribution process is becoming increasingly important nowadays. MIMO Technologies offers a tech-enabled platform to easily transport goods and products and achieve a high degree of precision in e-commerce and hyper local delivery. 

 

Our field officers are qualified to complete deadline-oriented work and deliver it to your customer in India’s most remote locations within pre-determined timelines. More than 14000 field officers serve in various rural and semi-urban areas. 

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Challenges and Opportunities in Last-Mile delivery

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Challenges and Opportunities in Last-Mile delivery

As the market expands, we’re seeing significant shifts in buyer wants and expectations, particularly in the shipping and logistics sector. Previously, a delivery period of 5-6 days was considered typical, but now, if companies take the same time, customers are more likely to cancel their orders since they know that other companies might deliver the same product in a matter of hours.

 

Retailers are looking for rapid, flexible last-mile delivery solutions to meet the increased need for seamless, immediate delivery. To comprehend this, we must first understand what last-mile delivery entails and what the primary last-mile issues are. 

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The delivery step from the warehouse to the customer’s doorstep is known as last-mile delivery. The main goal of last-mile delivery is to deliver the package as rapidly as possible. 

Last-mile delivery is the most inefficient procedure in the entire delivery chain, according to 61% of logistics businesses. So, let’s take a look at some of the most crucial aspects that influence last-mile delivery.

Common Challenges in Last-mile Delivery:

Lack of Transparency

Buyers want to know where their merchandise is located and when it will arrive. As a result, the most important criterion for developing trustworthiness is visibility. The majority of firms provide package trace IDs that display the product’s delivery status. People aren’t happy with tracking codes in today’s tech-driven environment. Even if the delivery is made the same day, they want to inspect every stage of the last mile procedure.

High Delivery Costs

Retailers and logistics businesses face a problem in providing an excellent delivery experience while being profitable. In fact, the last mile alone accounts for 28% of the total delivery cost. A lack of infrastructure to deliver things on time is one of the key factors. Failed deliveries, long routes, driver salaries, and fleet operations all have a substantial impact on delivery costs.

Unpredictable Factors

We can only foresee one thing when it comes to last-mile delivery: it is unpredictable. Some last-mile issues are beyond human control, such as traffic, weather, and flat tiresThe only thing logistics businesses can do is maintain constant communication and devise a backup plan for delivering goods fast. 

Route planning that isn't up to par

Route planning can be perplexing and psychologically draining for a novice. Several elements, such as fuel efficiency and environmental restrictions, play a role. The main cause of late deliveries is ineffective route planning. Logistics organizations can utilize route optimization tools to overcome this barrier and increase efficiency. 

Opportunities in Last-Mile Delivery:

Drones and delivery bots are both on the rise

Several logistic organizations are experimenting with robotic equipment such as drones and self-driving cars to undertake last-mile delivery. Amazon has already made a $530 million investment in Aurora, a self-driving car startup. Companies must, however, obtain authorization from government authorities before employing them. 

Increase in the number of urban warehouses

As the concept of same-day delivery grows in popularity, eCommerce companies will need to begin constructing warehouses in major cities. It is critical to have warehouses in cities so that things can be delivered quickly. This not only speeds up delivery but also makes delivery agents’ jobs easier.

Smart Tracking Technology

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Technology such as LI (Location Intelligence) is being used by logistics companies to improve the last mile delivery process. This technology includes capabilities such as real-time tracking, better visibility, route optimization, and fleet management. 

 

The LI system tracks the shipment’s progress, keeping users up to date on the delivery status. Retailers may take use of this technology by monitoring weather conditions and optimizing routes to deliver packages in the best possible conditions. This technology aids eCommerce businesses in overcoming the obstacles of last-mile delivery. 

Environmental Policy

To provide a fantastic delivery experience to clients, businesses must collaborate with numerous logistics companies. An eCommerce firm, on the other hand, can be a big source of carbon emissions. With customers becoming increasingly conscious of environmental issues, last-mile solutions that reduce pollution must include electric vehicles. Companies reduce carbon emissions and work in a more environmentally responsible manner by employing EVs.

Enabling last-mile delivery & logistics for E-commerce

Are you looking for a quick way to track orders in real-time, as well as last-mile delivery and e-commerce services? Using the intelligent MIMO application framework, MIMO has efficient end-to-end Transshipment logistics. The framework manages and optimizes last-mile delivery & e-commerce logistics across the entire distribution chain for your back-end functions with transparency and seamless integration. 

 

Successful management of the transportation distribution process is becoming increasingly important nowadays. MIMO Technologies offers a tech-enabled platform to easily transport goods and products and achieve a high degree of precision in e-commerce and last-mile delivery. 

 

Our field officers are qualified to complete deadline-oriented work and deliver it to your customer in India’s most remote locations within pre-determined timelines. More than 14000 field officers serve in various rural and semi-urban areas. 

Why choose MIMO for last-mile delivery?

The most critical part of the supply chain business is last-mile distribution. From quick real-time order monitoring and timely updates to smooth delivery, our tech-enabled platform ensures on-time deliveries.  

 

Our team consists of highly skilled professionals who are drawn to deadline-oriented work and can move your products from your warehouse to your customer in the most remote locations within pre-determined timelines.

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How last mile route optimization tech can facilitate efficient Supply chain operations

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How last mile route optimization tech can facilitate efficient Supply chain operations

In the logistics and supply chain industry, last-mile delivery is the primary driver of customer satisfaction. It has a direct impact on profitability because it is the most time-consuming, costly, and unpredictable aspect of the entire process. Tight delivery timetables, fluctuating fuel costs, and little control over delivery teams make last-mile delivery difficult to manage. 

 

It is not easy to perform last-mile deliveries seamlessly, but technology can assist you in overcoming the associated problems and meeting consumer expectations on delivery dates. 

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Last Mile route optimization improves the effectiveness of your supply chain while also providing a positive client experience. It can assist you in the following ways:

Cost Reduction

Using AI-powered sophisticated, route optimization solutions allow you to plan, schedule, and re-route your trips more efficiently. Planning your delivery schedule ahead of time allows you to reduce travel time and fuel expenditures from one customer address to the next. Dynamic re-routing enables you to maximize time slots, prioritize deliveries, and communicate route changes to drivers in real time. 

Enhances Efficiency

Reduce operational costs by lowering fuel expenditures and monitoring driver performance with a route optimization system tailored to your needs. Using multi-stop route planning saves you time that would otherwise be spent manually plotting routes and calculating fuel prices. The software selects the shortest and fastest routes, allowing you to deliver more in less time while also optimizing fuel use and lowering your carbon footprint. 

Ensures Transparency

Last mile route optimization software includes real-time tracking and digital delivery receipts. Customers can choose their preferred delivery times and alternate delivery locations. They can be kept up to date on package status and delivery times. You can keep track of each item and avoid fraudulent activity with real-time driver surveillance. 

Easy rerouting and rescheduling

Route planning and scheduling are critical for any logistics company. You may be required to reroute delivery orders due to unusual circumstances such as traffic, road conditions, rapid weather change, address discrepancy, and emergency deliveries. Route optimization software will aid in faster rescheduling and faster communication with drivers in order to keep delivery rates within time constraints. 

Easy rerouting and rescheduling

Route planning and scheduling are critical for any logistics company. You may be required to reroute delivery orders due to unusual circumstances such as traffic, road conditions, rapid weather change, address discrepancy, and emergency deliveries. Route optimization software will aid in faster rescheduling and faster communication with drivers in order to keep delivery rates within time constraints. 

Using Last mile route optimization/planning solutions and approaches, leading logistics organizations are successfully planning their transportation routes and timetables to satisfy the growing degree of client expectations. Route optimization software optimizes route planning for a variety of purposes, including pickup planning, route identification, cargo arrival time estimation, and scheduled deliveries. 

Distribution networks in India are complicated webs containing components such as retail networks, wholesale networks, and logistic infrastructure. Logistics is the lifeline of the Indian economy, and it is undergoing rapid transformation. However, because of their complexity, logistics networks are sometimes fraught with uncertainty.

Few challenges faced by last mile logistics and delivery businesses are:

Delivery delays

Late delivery degrade the customer experience and result in revenue loss. A minute delay in timeframes might cause consumer displeasure and necessitate rescheduling for your company. Managing disgruntled consumers and re-planning delivery would consume a large amount of your company’s time, resources, and capital.

How last mile route optimization tech can facilitate efficient Supply chain operations

Managing delivery density

Managing delivery workloads becomes more difficult when order numbers fluctuate. While logistics companies deal with the flood of deliveries during holiday or discount seasons, they must also concentrate on producing revenue during periods of infrequent ordering. Regardless of supply chain obstacles, customers want items to be delivered on time and to their liking. 

How last mile route optimization tech can facilitate efficient Supply chain operations

Optimizing last-mile delivery costs

Last-mile delivery has become expensive for logistics companies due to rapidly expanding competition and changing client expectations. According to a Capgemini research report, last mile services account for 41% of supply chain expenditures. To keep up with the competition, offering competitive delivery rates or altogether waiving them is becoming the new norm. Customers desire speedier deliveries, which raises costs and makes maintaining profitability more difficult. 

Key Takeaway

Route optimization technology is a delivery innovation that empowers supply chain enterprises that provide last mile delivery. It provides end-to-end transparency throughout the delivery process, including return management. Using technology to streamline your last mile operations and scale your organization by automating route planning and delivery management processes while providing excellent customer service. 

How can MIMO help?

Last mile delivery optimization can help you make faster deliveries. So, are you ready to improve the efficiency of your last mile distribution network? MIMO can assist your company in going online by providing the best last mile services in the region. 

 

The ability to effectively manage the transportation delivery process is becoming increasingly necessary in today’s world. MIMO Technologies provides a technologically advanced platform for efficiently transporting goods and items and achieving high levels of accuracy in last mile delivery. 

 

Our field officers are trained to complete time-sensitive work and deliver it to your customer in India’s most remote locations within agreed-upon deadlines. Over 14000 field officers work in a variety of rural and semi-urban settings. 

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