Last mile delivery is one of the most complex stages in the supply chain. It involves transporting goods from the distribution centre to the final customer's address. With the rise of e-commerce and consumer expectations, this phase is becoming a real strategic challenge. In this article, we will look at the following topic: optimising last-mile delivery, challenges and solutions.

 

Last-mile delivery involves the process of delivering products from the distribution centre to the end customer. This is a key stage because it has a major impact on customer satisfaction. However, this phase is costly and complex, especially in urban areas where congestion and dispersion increase the logistical challenges.

👉🏻 Today some 53% of total delivery costs are estimated to be linked to this stage.

 

Urban traffic congestion, short delivery times, and carbon footprint reduction are three of the main last-mile challenges. Indeed, in big cities, traffic density causes frequent delivery delays. This has a direct impact on fuel and labor costs. Furthermore, customers and consumers are increasingly demanding delivery times (click and collect, same-day delivery, etc.). These demands are forcing companies to speed up their processes, often to the detriment of efficiency.

At the same time, ecological concerns are becoming increasingly important (which is a good thing!). According to acteos, last-mile logistics are responsible for 25% of CO² emissions in urban areas.

 

To optimise last-mile delivery, many companies are investing in technologies to optimise their delivery routes. Systems based on artificial intelligence (AI) and Machine Learning now make it possible to plan itineraries in real time. These routes consider traffic and customer time slots. These tools increase the efficiency of delivery drivers, while reducing the costs and carbon footprint of deliveries.

 

Warehouse management software (WMS) centralises logistical information and ensures better coordination of goods flows. Indeed, by centralising all logistics information relating to stocks, orders and deliveries, WMSs improve the visibility and efficiency of logistics operations.

👀 Real-time visibility. Using WMS provides real-time visibility of stock levels in the warehouse. This visibility ensures that orders can be prepared and dispatched quickly, reducing delivery times.

🚶🏻‍♂️ Optimisation of order preparation. Thanks to centralised data, the WMS proposes optimised routes for warehouse staff. This improves the order-picking process and ensures that orders are ready quickly.

 

Sustainability is a major issue in last-mile logistics. More and more companies are adopting electric vehicles or cargo bikes for their urban deliveries. These environmentally-friendly alternatives help to reduce emissions while complying with new environmental regulations in major cities (i.e. low-emission zones).

👉🏻 In addition, the establishment of urban depots brings goods closer to end customers, which reduces the distance travelled during delivery.

 

Customer satisfaction is crucial when it comes to managing the last mile. To achieve this, companies need to offer flexible delivery options, such as pick-up points or click & collect. Not only are these solutions more economical, but they also enable consumers to organise the receipt of their parcels more effectively. Moreover, real-time management of deliveries (via notifications and tracking systems) enhances transparency.

Last-mile logistics is a strategic lever for companies that want to control their costs and are mindful of their ecological footprint. By adopting technological solutions and greener delivery methods, they can meet the growing expectations of consumers while optimising this major step. Optimising last-mile logistics is a major step towards more sustainable logistics... 🌿

 

Find out more about sustainable logistics in our latest edition of Scope by Satelix, our magazine dedicated to logistics topics.

 

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