Last Mile Delivery Challenges

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Riddhi Corporate Services Limited
Last Mile Delivery Challenges
www.riddhicorporate.co.in
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There has been an increase in the number of
companies offering third party logistics
services (3PLs), which are now competing with
shipping carriers for last mile delivery. In
many cases, a third party logistics company
stores the products in a warehouse that serves a
particular area of customers. Final
transportation and last-mile delivery are the
responsibility of the 3PL when an order is placed.
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1. High Costs
The entire supply chain and last mile delivery
operations are the most expensive because of
several challenges. There are numerous
obstacles to its implementation, including
antiquated IT infrastructure, limited logistics
visibility, and a constantly growing demand for
same-day delivery. Total shipment costs can be
reduced by optimizing last mile delivery
solutions.
Vision
Mission
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A lack of efficient routing techniques, manual
task allocation, and poorly managed third-party
logistics providers threaten the shipping process
and prolong delivery turn-around times. It is
difficult to maximize vehicle capacity with
same-day delivery due to the limited product
inventory, reducing the savings for logistics
firms. As a result, the associated costs increase
accordingly.
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2. Rigid processes resulting in inadequacy
With instant fulfillment and constantly changing
market dynamics, rigid delivery systems, which
are considered to be one of the most significant
supply chain inefficiencies, are becoming
increasingly obsolete. Customer dissatisfaction
increases when traditional processes rely on
manual involvement and fail to meet consumer
expectations. Nowadays, consumers prefer brands
that let them choose how and when to receive
deliveries based on their convenience.
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3. Poor Supply Chain Visibility
A lack of visibility in logistics operations has
many contributing factors, including outdated
supply chain architectures, outdated delivery
methods, and inadequate system integration. In
the absence of synchronization between an order
management system and a third-party logistics
providers system, it is extremely difficult for
logistics managers to track and trace a trucks
precise location.
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There are numerous inefficiencies as a result of
this. Visibility problems result in delays, false
ETAs, route diverts, idled vehicles, and
increased fuel consumption. They also obscure
deliveries to customers, which exacerbates
last-mile delivery problems.
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Thank you
Source Link https//medium.com/_at_riddhicorporatesl
/last-mile-delivery-challenges-dcf09dfa0e38