Last-mile delivery is the process of delivering products from a warehouse to the customer's doorstep. Ordering and booking online have put enormous pressure on logistics companies. As a result, businesses analyzed their supply chains extensively and found that last-mile delivery contributed 53% of shipping costs.
It is important to understand that last-mile delivery presents many challenges that can significantly impact customer satisfaction. The importance of last-mile delivery can't be ignored! According to a recent read in 2021, there is a 14.2% rise in the online spending of US customers compared to the previous year.
Post-pandemic, fast delivery has become the norm. Customers expect their packages to be delivered on the same day. “Your order is out for delivery” is a thing of the past. Creating a loyal customer base requires a positive customer experience. Using Beans Route, you can sort your last mile and make your customer happy.
Here are the challenges of last-mile delivery and how Beans Route can tackle them:
1. Obsolete Technology
The use of obsolete technology is one of the biggest challenges in last-mile delivery faced by businesses. The demand of customers in regards to their delivery needs has gone a complete metamorphosis, they expect same-day delivery. Customers even demand real-time visibility. They want to be kept in the loop and receive notifications and alerts of the delivery progress.
Switch to a well-designed last mile delivery software that helps to track numbers correctly and keep a tab on the variations. Beans offer fully automated last mile delivery software that enables the managers to maintain holistic control. With the right last-mile delivery software, your logistics business can streamline deliveries, improve supply chains, and enhance efficiency.
2. Hard to find the Addresses
Locating addresses has always been the most popular challenge in last-mile delivery. Drivers get frustrated finding addresses that are not accurately mapped. A study reveals that 65% of businesses believe that poorly mapped addresses account for failed deliveries. In the case of multi-unit apartments, it is a fussy task for the drivers to reach the exact address. Managing difficult addresses can be easier with dynamic mapping platforms.
Bean's routes artificial intelligence-powered routing significantly reduces the cost of last-mile delivery for businesses. It provides exact location data. They direct the drivers straight to the front door of the addresses. Beans route even pinpoints the parking area and entrance of the multi-unit apartments. It allows the drivers to eliminate guesswork and walk 100 ft. less per stop.
3. Last mile Delivery Costs
As mentioned above the rapidly changing customer demands put immense pressure on the supply chain networks to complete deliveries on the same day. As per a report published by retail touch points, 88% of the customers are willing to pay higher costs for same-day delivery. Despite the fact that customers pay extra for faster delivery options, maintaining such an exact delivery web consistently remains a massive logistical challenge.
In some cases, the costs cannot be transferred to the end customers. For example, failed or late deliveries and costs are borne by the companies. In the past times, the visibility that managers had was limited. They were dependent on the driver’s calling and on the daily activity logs that were maintained.
But now, with everything being integrated into one software the last mile delivery is much more sorted. Beans Route software allows users to make last-minute changes before dispatch in order to avoid missed deliveries. The managers can track each and every moment of the driver, and improve the overall efficiency of the operations.
4. Poor Route Optimization
Route optimization refers to the process of computing the most efficient route between two delivery points. Optimal routes aren't always the shortest, cheapest, or fastest but those that balance out all factors. Customers demand transparency in the delivery process. They ask for real-time tracking of their packages. In light of these demands, it is imperative to optimize routes in an efficient and cost-effective manner.
Beans Route allows access to real-time updates. It can save users from unpredictable situations. It includes the visibility of traffic patterns and helps in providing customers with accurate information and precise delivery windows. Planning optimal routes also enables admins to meet delivery deadlines. Study results indicate that ETA accuracy can be increased by 25%.
5. Poor Fleet Management
If you want to reduce costs in your last-mile delivery, you need to put an emphasis on fleet management. Poor fleet management accounts for a decrease in the overall efficiency of logistic operations. The purpose of implementing fleet management is to manage vehicles, minimize accidents and breakdowns, and ensure driver safety.
Introducing a fleet management feature in your last mile delivery software helps managers to keep a track of the vehicles. Vehicle management reports show a clear picture of what is lacking to adhere to the country’s transportation regulations.
It is a great way of managing the last-mile delivery costs. Beans route is an excellent software to manage your fleet. Managers can fetch the monthly maintenance records. These records help in pre-trip and post-trip inspections.
6. Late/Missed Deliveries
With the advancement of technology, customers have been furnished with the feature of choosing a delivery window. The customers expect their products to be delivered within that time window. It has made the last-mile delivery more tedious. Up to 95% of the customers say that they would not order again if the delivery is not up to their expectations.
In order to minimize the potential for late deliveries, the last mile delivery software must include analyzing the delivery date.
So it is easy to pinpoint the weaknesses in the system and avoid missed and late deliveries. When the drivers feel they can find the hard addresses easily and have the important locations pinned, they will not risk missing a delivery. Adopting small changes makes big differences.
7. High Driver’s Churn Rate
Driver retention is an important part of efficient last-mile delivery. Inconsistent wage calculations, lack of driver safety, and delayed process for leave approvals are major turn-offs for drivers. It is easier to operate the supply chain in the last leg of the supply chain if the driver is happy.
Driver churn can be reduced by conducting adequate driver training. Some last mile delivery software helps businesses in creating specific training modules for the drivers. A well-trained driver is less likely to get frustrated and remains with the business for a longer period of time.
Beans route is a one-stop last-mile delivery management software to improve your business's last-mile delivery requirements. It has all the features that are a solution to all the last-mile challenges. Beans targets to make your supply chain processes cost-efficient.
Conclusion
As explained above last-mile delivery is not only the most important aspect but also comes with immense challenges. Integration with a fully automated, AI-driven last-mile delivery software can save you from getting into the chaotic last-mile delivery challenges.
We provide the most advanced last-mile delivery software to your business to take it to the next level. You can fill in your details and book a demo. Please contact our team at sales@beans.ai for more information.