There will be a 20% growth in online retail share by 2023, and there will be a 10% increase in instant delivery. – Future of last-mile interventions
Due to COVID-19, customers have become accustomed to online shopping. This change in their shopping habits is making the logistics industry refocus on last mile delivery services.
Logistics businesses will now have to enhance their last-mile capabilities to suit the present times.
Problems in the last-mile delivery due to COVID-19
Beyond crippling most sectors in the global economy, this crisis has deeply affected the logistics industry.
- Lack of resources to deal with a sudden increase in demand: The majority of delivery companies are struggling to meet a sudden increase in online demand. They are striving hard to manage massive delivery volumes with limited resources.
- Order sorting issues: With the sudden rise in deliveries, logistics firms are facing problems in assembling and sorting orders. The limited resources in the customer fulfillment centers has made life tougher. Know how to achieve flawless accuracy in sorting deliveries with Locus.
- Jump in last-mile delivery costs: An increase in delivery volumes has also increased the last-mile delivery costs. It has led to a rise in maintenance costs, idling costs, fuel costs, and labor costs. Add to this free shipping and reverse logistics, it is indeed a tightrope walk.
What will happen to last mile delivery services post the pandemic?
Online orders will increase
The COVID-19 pandemic has pushed consumers to explore online services. It has inevitably spiked the demand for next-hour and same-day deliveries. Especially in the USA and Europe, E-commerce deliveries have seen a significant increase..
Contactless deliveries will increase
Contactless delivery options are unlikely to disappear in the post-coronavirus world. Delivery companies will offer the contactless delivery option so that both the customer and the delivery personnel feel safe. It will become the new normal in last-mile logistics.
Operational ability will go up
Since the past few months, the logistics industry has been on a hiring spree. As more consumers enter online shopping, logistics firms will have to expand their operational capabilities.
Refocus on efficiency and customer experience
Beyond efficiency, logistics businesses are now focusing on providing deliveries to ‘people’ and not to destinations. This emphasis on providing safe, efficient, and reliable deliveries won’t change even after the pandemic ends.
Technology solutions that can help you up your last mile delivery services game
Route Planning software
With on-demand orders increasing daily, the need for a dynamic route planning software is evident. It automatically plans efficient routes so that drivers can make on-time deliveries. It quickly incorporates the last-minute changes in route plans and creates an updated optimal route for the fleet.
Real-time fleet tracking software
Real-time fleet tracking software enables logistics managers to chart out plans for safe and efficient driving. It automatically sends real-time delivery notifications to both customers and fleet managers. Thus, it ensures that transparency is maintained during all last-mile delivery operations.
Electronic Proof of Delivery
Before this pandemic, face-to-face contact was necessary for last mile delivery services. Logistics companies are now implementing contactless delivery practices strictly.
Electronic Proof of Delivery ensures a quick, secure, and reliable way of delivering couriers or parcels, while avoiding person-to-person contact with the customer. It eliminates costs involved in managing the redundant paperwork by updating all completed deliveries in a few seconds.
Parcel sorting solution
A parcel sorting software accurately manages parcel sorting with negligible human dependence. It ensures that the most profitable routes are assigned to the right delivery agent to ensure on-time order fulfillment.
The parcel sorting solution has a geocoding engine that maps the right addresses for corresponding route numbers. Irrespective of the quality of addresses, it converts them into precise geographical coordinates.
COVID-19 has permanently changed the last mile delivery services. Companies should quickly adapt and assess their supply chain capabilities so as to fix the gaps.
Locus’ last mile delivery software helps to enhance customer experience by maximizing efficiency and reducing logistics costs.