The Importance of Last Mile Delivery

If you're running a business, then you know that delivery is a key part of the customer experience. The last mile is the last stage of the process, especially when the customer buys the product. When used in the context of transportation, supply chain, manufacturing, and retail, the last mile is used to describe the delivery of a product at the last stop of transportation.

What is the last mile?

Package parcel delivery starts from the manufacturing plant to the warehouse, which is known as the first mile of any delivery. Once a customer places an order, a specific product is shipped from the warehouse to a different distribution center, known as the middle mile delivery. As a result, last-mile delivery involves breaking up bulk goods from distribution centers into smaller individual deliveries.

Last-mile delivery is essential to keep up with the evolving attitudes of customers, where the company can ensure its own consistently profitable business and the growth of the company.

Why is the last mile the most important?

Consumers expect fast delivery

Speed of delivery is a key factor in winning and retaining customers. Online shopping has become more and more popular during the pandemic. Consumers in China and around the world now value speed of delivery and are willing to pay for it. Customers expect products to be shipped quickly from fulfillment centers to their doorsteps, and to achieve this speed of delivery requires careful last-mile planning.

Consumers want greener delivery

As consumers, we pay little attention to the environmental impact of various delivery options and how small changes can make a big difference. In fact, increased deliveries during the pandemic will only worsen the environment. Already some consumers are aware that all the vehicles they see on the road produce additional carbon dioxide emissions. However, many customers may feel conflicted but still opt for quick delivery. One way companies are meeting consumer demand for a green last mile is by building fulfillment centers near customer centers, so delivery trucks travel shorter distances.

Packaging is another major environmental issue for many customers. How the last mile of retail needs to adapt to a post-COVID-19 world. Fears that the virus could spread through person-to-person contact have forced some companies to resort to packaging such as single-use plastic. But once the pandemic returns to its new normal, consumers may demand a return to sustainable packaging to protect the environment.

Mistakes are costly

Costs can quickly mount if company leaders don't plan the last mile properly. Even if the process goes smoothly, last-mile delivery still accounts for a significant portion of a company's transportation costs. If the package requires a signature and no one is home, the driver will need to return to the house. If the customer receives the wrong item and orders the right item, the driver will need to travel again. These errors can also increase fuel costs and delivery times.

Satisfaction of delivery

The importance of last-mile delivery to the logistics industry is what makes the difference between successful and unsuccessful logistics companies. Nowadays, customers want their orders delivered from fulfillment centers to their doorsteps as quickly and safely as possible. They can't know the transportation process of the goods, only can obviously see the actual product in front of them. This is especially true when customers find their valuable purchases left carelessly in the hallway, or packages are broken, which can reduce their satisfaction. So customers may choose their competitors in the future.

How can eTower assist you

eTower provides services that help businesses deliver last-mile solutions and processes.

All in all, the most important element of logistics in the world today is last-mile delivery and everything that goes with it. This service is sustainable and affordable, enabling companies to meet consumer needs and maintain the loyalty of the entire brand.