Last-mile logistics are complex. Managing multiple carriers, meeting increased customer delivery expectations, and controlling costs take planning and optimization that goes beyond simple business rules.
A recent study by Bringg shows that as logistics networks expand, providers need to find ways to integrate last-mile operations, even if they are currently struggling with them.
The report showed that onboarding and integration were the most significant pain point for last-mile operational pain for all respondents (44%), followed by visibility into outsourced delivery partners (44%) and carrier and driver management (41%).
Customers are less forgiving of slow and delayed deliveries
And while shippers may not be fully back to pre-COVID business-as-usual, consumers may be. As we head toward the 2022 holiday, a recent study from Ware2Go shows that consumers are far less forgiving of slow and delayed delivery times than a year ago.
According to the study, in 2021, nearly 60% of consumers said they had lowered their expectations for timely shipping. However, this year that number has plummeted to only 16% having lowered expectations around one- and two-day delivery performance.
Managing a multi-carrier network adds to shippers' difficulties
Final-mile delivery obstacles become even more challenging as shippers expand their carrier network to get products to customers quickly and with fewer costs.
The Bringg survey showed that managing an increasing number of carries ranked as a top pain point for a whipping 41% of providers —18% globally claim it is the leading obstacle to more profitable last-mile delivery, which jumps to 25% for North American companies.
While managing a growing multi-carrier network isn’t easy, it is now necessary to have one to match customers’ growing expectations.
Customers expect a lot from their delivery experience
According to a study by Fabric of 500 consumers and 200 senior brand and retail managers, 76% of consumers expect free two-day shipping with a minimum purchase of only $40. However, two-day is the bare minimum customers expect. In addition, the study showed that 61% of consumers expect free next-day shipping, and 52% expect free same-day shipping with a minimum purchase of only $40.
The Ware2Go study showed that meeting consumers’ desire for speedy delivery can help boost a brand’s business and grow consumer loyalty.
The study reported that 76% of consumers said they were more likely to make a repeat purchase based on a fast shipping experience.
Meeting this need for speed while keeping costs under control is a tall task, especially when retailers factor in the growing costs from carrier capacity crunch, increased costs such as fuel surcharges and dimensional weight fees [DIM Fees], and an increased desire for sustainable shipping visibility and tracking, and more.
Meeting these demands and keeping costs in check require more extensive planning and decision support throughout the order-to-delivery cycle that go beyond the more basic business rules that shippers have relied on for years.
The five final mile value pillars
To gain insights into meeting customer expectations by going beyond business rules and planning and optimizing your shipping, watch this on-demand Supply Chain Webinar featuring Pierbridge and Sendflex Technology.
During this webinar, we explore the five pillars of final-mile value that shippers can use to:
- Control and adapt to changing situations
- Cost-saving measures
- Overcome carrier capacity issues
- Sustain sustainable shipping
- Deliver an outstanding customer delivery experience
Register for this informative webinar today!