Last Mile Maturity Report: Elevate Customer Experience, Outrun Rivals

Shippers are already aware that the last mile is the most complex and expensive in the entire supply chain operations.

One key factor for this is consumer expectations continue to reach higher benchmarks. According to Statista, 68% of online shoppers expect free shipping/delivery and 37% expect next-day delivery.

In the face of complex routing and capacity issues, integration issues leading to data silos, visibility problems, and more, carriers and last-mile businesses really have their work cut out for them.

The obvious solution would be to upgrade your existing supply chain solution to overcome these challenges and achieve last-mile excellence. That said, some countries and industries are leading the pack in key aspects of enabling last-mile excellence.

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The Data Tells A Larger Story

Our latest report, Decoding Asia’s Last-Mile Maturity, is a culmination of insights from businesses across diverse industries from India, Indonesia, and The UAE that have completed the Locus’ Last Mile Maturity Assessment.

It uncovers valuable insights about the current state of last-mile logistics in these countries. It also shows progress and gaps in the ecosystem, and the pivotal role of technology in driving business success.

The findings reveal that 79% of global organizations are in the growth phase, which means they are actively embracing technology to enhance last-mile efficiency. However, a disconnect remains: 84% need to be more confident that their last-mile operations yield tangible growth and remarkable consumer experiences.

This is just the tip of the iceberg. 

In India for example, almost 70% of the organizations are not confident that their Last Mile operations will deliver real-world growth and memorable consumer experiences. On the flip side, it is a leader in its extensive use of Data Analytics to spot hidden inefficiencies and capture new growth opportunities.

Likewise, the UAE leads in delivering exceptional consumer experiences. But when it comes to sustainability, more is yet to be done. 49% of global organizations lack confidence in tracking sustainability metrics to reduce emissions and fuel consumption.

More revealing insights are part of this extensive report. You can leverage it to improve your operations and to see how your competition is faring in the race toward last-mile excellence.

Adopting a robust technology to optimize and automate your last-mile operations is a logical way forward. However, before adopting a solution, shippers and other last-mile players need to know where they stand in the last-mile delivery evolution cycle. This is what prompted businesses to fill out the Last Mile Maturity Assessment.

What is the Last Mile Maturity Assessment?

Locus one-of-a-kind last mile maturity assessment survey provides a business-tailored extensive report that touches upon five major aspects of last mile operations: customer experience, analytics, last mile excellence, workforce empowerment, and sustainability. 

All you need to spend is just seven minutes to finish this assessment and you’ll have insights and recommendations to ace last mile delivery.

On completion of the assessment, businesses are then assigned one of three stages of last-mile maturity, which are:  Emerging, Growth and Optimized. 

Emerging Stage:

In the Emerging stage, companies concentrate on research, product development, customer base establishment, and aligning offerings with customer needs. Logistics is regarded as a supporting function during this phase.

Growth Stage:

During the Growth stage, the emphasis is on delivering the finest speed, convenience, and customer delivery experience, possibly broadening the product range or exploring new markets.

Optimized Stage:

At the optimized stage, companies are masters of the last-mile game. They’re not just keeping customers; they’re binding them with loyalty. They slash inefficiencies, dominating delivery surges, dodging all kinds of obstacles, and ensuring their product remains king of the hill.

The Way Forward for Last Mile Players 

13 of 20 consumers expect brands to understand their requirements and expectations thoroughly. 

On the other end, in last-mile fulfillment, which dominates shipping costs, businesses face a critical juncture due to economic pressures and high consumer expectations. Any mishap can push customers towards competitors. This is why in 2023, leaning into digital tech solutions is non-negotiable for businesses striving for revenue growth. 

While certain factors outlined above show why adopting technology is key to better last-mile efficiency, It’s essential to understand an organization’s maturity before deploying tech as these potential areas of growth could make technology adoption a bit difficult if not ironed out early on.

Periodic use of the last mile maturity assessment helps benchmark performance, identify areas for growth, streamline processes, and align with customer needs. Before embarking, ensure clarity on your objectives and readiness to tackle challenges, maintain delivery quality, and resolve issues. These considerations are pivotal for success. 

If you are looking for recent trends and competition insights on last-mile fulfillment, download our extensive report here to get the competitive edge. 

That being said, If you feel your current last-mile technology is not cutting it, then it wouldn’t hurt you to see what Locus can do. 

References:

https://www.statista.com/statistics/1343029/share-online-shoppers-likely-purchase-delivery-options/#:~:text=In%20the%20first%20quarter%20of,a%20next%2Dday%20delivery%20option