7 Major Challenges of Last-mile Delivery 

The ‘last-mile delivery’ is among the most complex and significant supply chain and logistics methods since it acts as a bridge between shippers and carriers. Nevertheless, the considerable significance and the target of reaching freight forwarding satisfaction within last-mile delivery operations have been presented with many challenges. The main issue is that nearly 61% of the businesses in the freight industry believe that last-mile delivery is the most inefficient part of the Freight moving process.  

Most of the challenges faced by last-mile delivery involve high prices, transportation, inefficient delivery, and environmental disruptions. This makes it very difficult to run a business smoothly. So, let’s address the most crucial challenges affecting last-mile delivery by providing solutions. 

7 Most Common Last Mile Delivery Challenges and How to Deal with Them!

The last-mile delivery issue has become a challenge in the present era of dynamic business. This vital Freight journey from carriers to the destination is where the attention of carriers, shippers, and businesses lies. There are several factors contributing to the increasing popularity of last-mile delivery: 

High-Delivery Costs 

While last-mile delivery is the shortest point in the delivery chain, it also costs the most for both the end user and the business. Incorporating new facilities to accommodate the higher demand would also be costly. In addition, unplanned expenditures may be placed on delivery, such as delays and order cancellations. Shifting the cost to the cargo receiver would be a poor decision.  

Solution: The cargo receiver is very likely to drop a piece off if they find anything extra, they didn’t know about. Therefore, you have the option to minimize these costs inside the business and ensure nothing is outside the range. 

Delayed Delivery 

The late arrival of goods and missing delivery deadlines can cause a short-run loss in profitability. Delays in freight forwarding and logistics are mainly unequivocal but also costly when mitigating them.  

Solution: However, for the first stage of last-mile delivery, the most efficient way is to adequately plan the delivery routes and avoid disrupting the system through distributed delivery network and real-time communication. The deadline may be missed in cases of late deliveries, resulting in canceled orders. Saving time and clients is also a great option to reduce the issue of wasted food. This could mean you wouldn’t have to go through the complex returns process. You will still have to handle the customers’ expectations and be ready with late delivery penalties. 

Unpredictable Accidents 

We have hit an absurd contradiction. How do you consolidate something unpredictable? Frankly, every big endeavor has a postulated error range for things not to go as planned. An industry’s professional salaries usually fluctuate between 5% and 15%.  

Solution: Industry workers constantly work on the front lines, solving local and long-haul transport issues. We recommend creating contingency funds. Leaving some extra time and money budget for unexpected complications is essential. The figure will directly depend on the number of complications you have had. 

Missing Real-Time Tracking Capabilities 

Currently, most logistics companies that do last-mile delivery are still using technologies such as tracking numbers and scanning codes, which only provide information about whether their package is in transit or out for delivery. Estimated time-of-arrival (ETA) or other updates that the consumer wishes to know are not available, which makes for poor customer experience. 

Solution: People want to know the delivery information down to the smallest details. Consequently, it is indispensable to have a full view of last-mile delivery to ensure customer satisfaction. We have this opportunity to provide visibility to the cargo receiver, which leads to real-time tracking and transparency on freight movements. However, several businesses still have not prioritized full transparency towards their consumers. 

Inefficient Route Planning 

Last-mile route planning is a sophisticated process due to the uncertain factors involved during last-mile delivery. Variables like weather, political or social issues, and road blockages due to repair works could compromise the optimization process. Although advanced technology can predict traffic, weather conditions, and congestion levels an hour beforehand, it is impossible to determine an exact delivery route and plan accordingly. There needs to be more route planning to ensure timely deliveries, more idle time, fuel inefficiency, and unproductive drivers, causing severe damage to the last-mile delivery business. 

Solution: You can fix this problem with practical route optimization. Not only does it minimize costs in late deliveries, but it also brings positive results to the forecasted arrival time. 

Outdated Technologies 

It is also astonishing that many logistics companies still use outdated technology. Even when a logistics company implements digital technology and delivery, the last mile is frequently omitted for unknown reasons. The targets are to find more shippers or make global transport faster.  

Solution: Conversely, micro-adjustments in product last-mile delivery might also have great outcomes. Given the advanced technologies and the number of available modern solutions, there shouldn’t be any reason to reject this sort of offer. Providing GPS devices and tracking software to outfit drivers also enables you to monitor real-time deliveries. 

Limited Access to Certain Locations 

Difficulties in logistics occur in isolated areas or where infrastructure could be better and more adequate. If some places are not well connected, delays or even failure to meet expectations could happen.  

Solution: To solve this problem, logistics companies must have their regional-based distribution hubs conveniently located near rural areas. Reducing the distance of last-mile delivery may make it much easier for businesses to simplify the process and deliver orders faster. In remote locations, customers can quickly obtain orders by collaborating with local stores or community centers as delivery and pick-up hubs. 

Conclusion 

The last-mile delivery issue is an irreducible part of the logistics and freight business, and the solutions are liable to change. At the moment, small businesses and start-ups are using all forms of technologies and services to streamline their logistics operations. One such service is Freight forwarding, where the company manages the movement of goods from one place to another. They will help get rid of delivery-related issues.