Going the Extra Mile: How Optimizing Last Mile Delivery Puts Brands on the Road to Success

Accelerated growth in e-commerce has led to an increased focus on optimizing last mile delivery, the final phase of the purchasing and delivery process, with an emphasis on speed, cost efficiency and sustainability. In a world where the effectiveness of a delivery process becomes a make-or-break situation for guaranteeing customer loyalty, brands are exploring both established and new innovations to deliver to customer need and keep high shipping costs, commonly associated with last mile delivery, to a minimum.

For brands looking to expand to new markets and improve their order fulfilment process to reach customers across multiple areas, engaging a multi-node fulfillment operation is the link to securing a wider net of inventory across multiple distribution centers and micro-fulfillment centers, as opposed to operations being handled from a single facility. By keeping inventory close to the customer across a variety of geographies, the last mile presents less of a challenge and consumer need can be delivered promptly. Furthermore, the ability to optimize inventory across a series of locations by leveraging alternative fulfillment solutions can shorten the supply chain, reduce transportation distances, and offer a lower cost when it comes to shipping options. Through distributed order management (DOM) technology within a multi-node fulfillment strategy, brands can enable customers to choose how a product gets to them within a desired timeframe.

Yet a multi-node strategy and activation of DOM technology aren’t the only ways of optimizing last mile delivery to benefit both brand and customer. More practices and strategies should be put in place to ensure customer needs remain the center point of deliveries.

Seeking Out Sustainable Fulfillment Practices

Multi-node technology can reduce the carbon footprint by shortening last mile delivery. With today’s consumers prioritizing sustainable modes of transport often over delivery times, this is an integral strategy for brands to consider and invest in. With climate change an ongoing conversation, brands can demonstrate their commitment to sustainability and win customer favor by enacting multi-node fulfilment to bring products closer to customers across a number of different geographies. A series of DCs across key locations is key in making this strategy work hard for a brand, especially when an item can be shipped from a local store, picked up curbside the same day, or held until a designated delivery day — all more sustainable practices than shipping from a single DC.

How Drones Can Drive Last Mile Delivery Success

Drones are increasingly used in e-commerce delivery, primarily for the promise of speed and efficiency and the ability to overcome on-the-ground challenges (e.g., poor infrastructure or geographic barriers). Moreover, drones offer cost-saving benefits by eliminating expenses associated with managing a workforce involved in traditional delivery methods. Most unmanned aerial vehicles are also electric, offering a lower carbon footprint compared to conventional delivery vehicles.

Delivery Expectations and Consistent Customer Service

The rapidity of delivery is an important part of last mile delivery, but the effectiveness of a robust customer service team shouldn’t be underestimated. A positive, personalized and proactive customer care experience can make or break the point of sale and establish a lifelong customer, especially if the customer service team helps weather the storm of any delivery disruptions that may occur. If brands activate efficient customer service through a variety of channels (e.g., chat, email, phone, chatbot and social networks), customers can be assured they're being served the ultimate convenience when it comes to their purchasing and delivery journey.

Effective Cross-Border Logistics

Optimizing supply chain management and using international warehousing can be the key to not only retaining customers but winning new ones. Cross-border logistics can serve to cut delivery times and costs, and by partnering with shipping providers with cross-border expertise brands can reach new customers effectively and win their loyalty. In addition, brands can look to optimize metro-fulfillment centers; opening regional fulfillment centers for the long or short term and utilizing lightweight infrastructure can mirror a full distribution center operation at a fraction of the cost.

The efficiency of a brand’s logistics and guaranteeing customer satisfaction often hangs on optimizing last mile delivery. While the strategy involves a series of complex processes which aim to secure the efficiency and timely delivery of products, it's key to brand success. In today’s retail landscape, with technology and customer expectations evolving in tandem, last mile delivery strategies can be the No. 1 way of achieving operational efficiency and realizing customer satisfaction.

Jamie Saucedo is senior vice president, business operations at PFS, now part of GXO.