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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 tires. The 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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How to Launch Your Own Delivery Business

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How to Launch Your Own Delivery Business

It can be challenging to come up with a new business idea. A delivery business may be a suitable option for those who seek the independence of being a small business owner without reinventing the wheel. Starting your own delivery business is a terrific opportunity to be your own boss and earn a decent salary without much effort.

 

The delivery business is a simple service that entails taking merchandise, securing it within your mode of transportation, and delivering it to the final location. That model can be applied to almost anything. This necessitates a difficult choice between a broad model and a narrowly targeted specialty approach.

 

In terms of niches, working as a courier for documents and small products is a popular option. Couriers are used by real estate brokers, banks, and financial organizations to transport financial paperwork. Many of these are highly essential documents, such as official contracts and even checks, and they must be given by hand.

 

A local, general delivery business, on the other hand, can transfer anything reasonable in a local area. Food deliveries, moving assistance, and any other job deemed appropriate are all available as a general service. The mode of transportation is the most important piece of equipment in the delivery industry. Local deliveries can be made by bicycle or motorcycle. A car, van, or truck is standard, although larger box vans and specialist vehicles are utilized for larger equipment.

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Things that you will need to kick-start your delivery business:

License and Insurance

Licensing your business is necessary for collecting and paying taxes, as well as protecting your assets. Although you can operate as a single proprietor and merely license the business name, an LLC business model adds a degree of protection by separating the business from your personal life.

 

To operate, you will need a state license as well as a district or city license. This varies by location, so check with your local tax and business registration agencies for further information.

 

Insurance is also essential in this industry. To protect yourself and any passengers or other drivers, your car will require commercial insurance. Including a cargo, protection strategy is also vital, especially if you ship high-value commodities.

Permit for Transportation

Transportation Permit

Local operations do not necessitate any Department of Transportation licensure, but larger cargo rigs and anything crossing state lines must have a commercial Department of Transportation Permit. If the vehicle is classified as commercial, you may require a special license.

Marketing and Operations

After you have launched your company and set up your equipment, it’s time to find customers and make a profit. The market is evident in the financial segment, and you may approach real estate businesses and local financial institutions immediately.

 

Define your target markets and get your name in front of consumers in other categories. Put your company name and logo on your car, advertise in local print media, and run a few Facebook ads with local targeting. Referrals are your most valuable business source. Give each customer a business card and ask for references immediately. It takes time to establish a name, but with local marketing and referral systems, your company may amass a large customer base.

Use the Internet to promote your brand

Websites aid in the establishment of a professional image and the marketing of the company’s offerings. Client testimonials, photos of delivery trucks, pricing, the geographic region served, and operating hours can all be seen on websites. Other marketing techniques for acquiring new delivery customers include eye-catching business cards, flyers, and promotional offers.

 

It is OK to establish early route ideas virtually utilizing internet maps and address directories when arranging trips. However, before finalizing initial delivery routes, plan a test run in which you drive the regular route without making any deliveries. You may notice busy crossroads, one-way streets, or large construction sites that you should avoid.

Establish a fair pricing plan

 Because of the potential for variation in distance driven and item size, pricing for delivery routes can be difficult. It is acceptable to charge varying rates to different clients; for example, some customers may

receive price savings for repeated deliveries when compared to clients who reserve a one-time delivery.

Route planning and last-mile distribution

Optimization is critical 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.

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 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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How do I build a competitive and environmentally sustainable last-mile delivery network?

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How do I build a competitive and environmentally sustainable last-mile delivery network?

During the pandemic, something unexpected happened to last-mile delivery: it became greener. When supply chains began to move again, the environment quickly changed, as people began to buy more and more items online. 

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Some of the unprecedented changes and trends that occurred in last-mile distribution during this period are as follows:

  • Consumer habits and retailers' reactions to the pandemic altered the carbon footprint of last-mile distribution, making it more sustainable.
  • Through 2025, the last-mile supply chain enabled by local fulfillment centers could reduce last-mile emissions by 17 to 26%.
  • Stores were transformed into distribution centers, the ability to ship from a store and pick up at the doorstep appeared, and parcel drop density increased.

Impact:

The pandemic hastened local or market-based fulfillment, permanently altering supply chains by bringing inventory closer to consumers than it has ever been. This opens exciting opportunities for post and parcel companies, as well as logistics companies, to build a more competitive last mile. To achieve long-term change, the ecosystem must collaborate to incentivize greener choices, reconsider asset usage, and use data and analytics.

It is important to collaborate around the ecosystem to identify and address the hidden costs of last-mile delivery. This entails judicious investment in cutting-edge technology while balancing high and low-impact opportunities.

Here are the top 4 ways to make your last-mile delivery platform more competitive and eco-friendly:

Route Optimization:

An effective last-mile distribution management system must include route optimization. Increasing route planning efficiency will help you save money on gas and be more environmentally conscious. Routes that are more reliable result in fewer miles traveled, and less time spent on the road. This also holds the output of your equipment in top condition.

Technology plays a significant role in this. Advanced route optimization software employs advanced algorithms for route planning, resulting in lower fuel consumption. On multi-stop delivery journeys, efficient route planning ensures that less time is lost on the road, the equipment performs optimally, and traffic congestion is reduced – all of this contributes to substantial financial savings.

Hyperlocal epoch:

In the last-mile distribution logistics industry, a new concept is gaining traction: a localized experience. In the age of millennials, the deliver from store model appears to be gaining popularity, especially in the grocery and retail sectors. The potential of hyperlocal e-commerce companies to offer goods and services at a breakneck pace is their USP.

 

There are some other advantages as well which include lesser inventory, lower transportation costs, and a higher number of efficient deliveries.

Green Logistics Incentive:

It is possible to make a good profit when operating green and lean logistics operations; in reality, measuring and reducing one’s carbon footprint has become the norm in many industries.

 

It is not easy, however, to achieve an effective green last-mile delivery. There are several considerations to make: selecting the right fleet for the job, preparing the most effective delivery path, selecting the appropriate packaging, ensuring the customer is satisfied with the delivery, all while minimizing the environmental impact.

Zero-Emission Fleet:

Climate change is possible, and it could be the greatest challenge we face today. Urban logistics is a major contributor to the rising levels of greenhouse gases that pollute the atmosphere.

 

Companies all over the world have begun selling electric or hybrid fleets to ensure last-mile deliveries, moving closer to the target of Zero Emission Urban Logistics by 2025.

There is no going back from the pandemic’s effect on the last mile. The shopping patterns of consumers vary. The footprints of retail establishments vary. If the ecosystem works together to act on sustainable last-mile activities, the last mile will also be different—much greener. Everyone has an important role to play. What will be yours?

 

Businesses seek more ways to make distribution and last-mile logistics environmentally competitive while remaining financially viable as demand for environmentally efficient operations increases from optimizing dispatch for reduced carbon footprint to reverse logistics and recycling.

Effective fleet 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.

 

For more information regarding our services please contact us. 

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Why should businesses choose logistics service partners that employ local resources?

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Why should businesses choose logistics service partners that employ local resources?

Consumer landscapes are evolving at a rapid pace, while companies adapt to the new standard. Around the world, manufacturers and industrial firms are working hard to sustain and improve their supply chains. Companies that previously relied on foreign sourcing to save money are now looking for more cost-effective alternatives.


Procurement practitioners are increasingly relying on local sourcing. During the COVID-19 pandemic, as other businesses’ supply chains were disrupted, this approach helped many manufacturers maintain business continuity.

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Many consumers want to keep the supply chain as close to their homes as possible.
Here is why: Logistics Service Partners

Greater adaptability:

You never know when an opportunity or a challenge will present itself. For example, a great customer might offer you a highly lucrative deal, or a current client may require you to scale up to meet demand. Are you prepared?


If you source locally, the answer is almost certainly yes. This is because local suppliers are usually more sensitive than suppliers who are located farther away where it is much easier for a retailer to organize a shipment across the street than it is to coordinate a shipment across the globe.

Enhanced Control:

You have less leverage over elements of your supply chain the farther you are away from them. Suppliers will claim to treat all customers and purchase orders fairly, but if they expect a site visit or a drop-in meeting from you, they are likely to remember you.

 

Face-to-face meetings will allow you to discuss any questions you may have and ensure that all items meet your expectations. There is also a smaller risk of something being “lost in translation,” which is normal when dealing with large numbers of people, many of whom are not on the floor and handling the items.

Optimized Supply chain costs:

If you are trying to save money, you can also think about tightening the supply chain. Companies invest a staggering amount of money on logistics per year, with North American companies investing over $1 billion annually.

 

Localizing the supply chain will help you save money on a lot of these expenses. Additionally, since less money is spent on logistics, the bottom line will suffer less.

Increased Revenue:

Local sourcing can not only help you save money, but it can also help you make more. Since your efforts to maintain a tight and fast-paced supply chain can impress local businesses, which can help you attract new customers.


Make your dedication to local sourcing a part of your marketing and sales plan. Consider incorporating it into your one-of-a-kind selling proposition.

Beneficial for the Community:

It stands to reason that if sourcing locally boosts your bottom line, it will do the same for other local suppliers and producers, which can be a huge win for your community’s economy and residents.


Employees who are happy and well-compensated are more likely to invest in local businesses. Furthermore, well-known, and affluent organizations can give back to their communities by fundraising, volunteering, incentives, and sponsored events.

Eco-Friendly:

Localizing the supply chain is a brilliant way to contribute to environmental sustainability. When you cut down on transport and storage, you cut down on pollution and energy consumption. Local sourcing not only helps you support green production but also helps you create customer confidence.

Launch your products faster:

Locally sourced employment benefits from partnering with businesses in the same time zone, which makes contact simpler and faster. You will be able to solve issues quicker and launch goods in response to spikes in market demand.
Consumer expectations for companies to improve their transparency around ethical supply chains and corporate social responsibility are at an all-time high. Manufacturers should carefully evaluate their third-party vendor risks and supply chain now.

Local sourcing will help the company become more versatile and agile, allowing it to respond to changing market demands and challenges while saving money and improving service levels. Transportation carriers, warehousing firms, freight forwarders, and third-party logistics service providers are among the local networks of businesses that offer a wide range of logistics services. Retailers, suppliers (for both new products and aftermarket parts), and distributors all have distribution operations.

 

Bottom line, businesses that rely heavily on logistics as part of their service offering or as a significant part of their overall costs need the support of local networks to help them grow and contribute to economic development.

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