Last-mile delivery: The biggest challenge of e-Commerce

Over the last few years, e-commerce has become an indispensable part of global retail. As more people turn to online shopping, online payments, and doorstep deliveries, e-commerce is progressively increasing in popularity. Global retail e-commerce sales are anticipated to reach $5.7 trillion in 2022 and $6.3 trillion in 2023, according to eMarketer (USA).

User-friendly interface design, product and service diversification, marketing and promotion tactics, prompt customer assistance and issue resolution, efficient last-mile delivery.. are some of the factors that give e-commerce businesses a competitive edge. Considering all of those factors, last-mile delivery is essential

“Last mile” refers to the last leg of a product’s travel from the warehouse to the customer’s location. This part of the supply chain is frequently the most expensive and labor-intensive.

Some of the challenges in last-mile delivery

Optimizing delivery routes: Routing deliveries more efficiently presents a big difficulty in Vietnam due to the abundance of tiny delivery locations and the intricate urban traffic system, particularly in major cities like HCM and Hanoi. Ineffective route planning may result in the waste of resources and labor, higher transportation costs, or even delays in completing orders as promised.

Expedited delivery trends: Current trends in expedited delivery include same-day and even 2-4 hour deliveries. Customers now expect us to deliver within these condensed time frames. Because of this, logistics operations are under a lot more strain and must strictly adhere to delivery deadlines and service quality standards.

Urban traffic congestion: The flood of delivery vehicles into populated city centers at rush hour contributes to traffic jams, which causes deliveries to take longer.

Ensuring customer satisfaction: The Last mile directly impacts customer satisfaction, being the final touchpoint in E-commerce. Late deliveries or damaged packages can lead to customer dissatisfaction and potential loss of market share in the long term.

How to improve the last mile delivery?

Improving last-mile delivery essentially boils down to better logistics planning and smart investment strategies with a long-term vision. Your aim should be to get the shortest and most cost-effective route for your final-mile delivery services.

A reliable answer to the last-mile problem has developed in the form of Transportation Management Systems (TMS). A TMS solution may improve fleet efficiency and customer experiences while managing, optimizing, and streamlining transportation activities.

Key Benefits Of Centralized TMS with Last Mile Delivery

TMS employs algorithms to streamline delivery routes, cutting down on driver time and transportation expenses. By considering factors such as traffic, weather, and delivery times, TMS ensures more accurate and efficient route planning.

Additionally, the integration with GPS-enabled devices enhances TMS’s real-time tracking capabilities, allowing businesses to monitor the status of orders or shipments and pro-actively communicate with drivers or customers about delivery progress.

Businesses may increase transparency and lower the possibility of delivery delays by using TMS to send automatic notifications and delivery updates to customers. Additionally, the performance of last-mile operations is synthesized and evaluated based on set targets, leading to insights into areas for improvement and support in making well-informed decisions to enhance logistics strategies.

In conclusion, last mile management remains a significant concern for organizations as E-commerce develops. By implementing TMS, e-commerce businesses may streamline delivery operations, cut costs, overcome the last mile barrier, and give their customers easy and delightful purchasing experiences.

*Source: tapchicongthuong.vn