Optimize Last-Mile Delivery: Best Methods & Cost Solutions

Many retailers encounter problems in last-mile delivery. Missed deliveries, delays in shipments, and peak season chaos can disrupt an otherwise streamlined operation. With the right delivery methods and smart innovations, this process can become easy for retailers.

Last-mile delivery is not limited to Home Delivery or White Glove Delivery, but includes Lockers, E-Scooter delivery, Automation, and many other options. This guide outlines many ways to improve last-mile logistics for reducing costs and improving speed.

Understanding Last-Mile Delivery Challenges

• Delivery Delays: Can be due to congestion, poor route planning, and high volume of orders.
• Failed First Attempt Delivery: Due to unavailability of customers at scheduled times, riders might have to attempt deliveries multiple times.
• The Challenge Of Scaling Up Operations At Peak Times: During holidays, there can be an increased number of orders. It becomes difficult to manage all those efficiently due to staff shortage or inefficient management.

Guide to Different Kinds of Delivery Methods

Home Delivery

Home delivery has become the most advantageous delivery method. It offers convenience for customers. The delivery time is already scheduled. Depending on the item, it can be from a few hours to a few days. It can include the delivery of food, clothing, groceries, shoes, or other light items.

White Glove Delivery

A special delivery service is referred to as white glove delivery. It shares the same concept with home delivery, yet is specially designed for heavy and fragile items. Once an order is placed, a team takes care of everything for the customer. The expert team does the unpacking, assembly, and even installation.

This guarantees safe transportation of all the items and correct installation.

Locker Delivery

Locker delivery is an automated last-mile non-contact delivery service. The couriers place the parcels into lockers. The clients are able to access them at any time. This delivery model is the perfect choice for reducing the number of missed deliveries.

Moreover, it provides an option for customers with a busy schedule to have their deliveries done when they are not available. For the businesses, this method has lowered the number of failed delivery attempts, which in turn has reduced the delivery cost.

Pickup Point Delivery

Once a customer has made an order online, it is shipped to the chosen neighborhood point. It is a win-win situation for the business since they do not have to pay for residential surcharges.

Approximately 48% of the United States' online shoppers abandon their cart upon seeing the delivery fees. Consolidation of deliveries reduces the cost of carriers, which in turn allows for free shipping thresholds that cut down on abandonment, raise AOV, and ultimately lead to higher profits for retailers.

Curbside Delivery

Curbside delivery is yet another way of delivering items without contact. In this scenario, the delivery person places the package in the vicinity of the customer's home. It can either be at the entrance of the driveaway or at the customer's home sidewalk.

This method saves the time of the delivery person because the person will not have to wait for the customer to come and receive the order. In this way, more orders can be delivered in less time.

Solutions for Improving Last-Mile Delivery Services

Choose a Suitable Delivery Method

Retailers can cut down delivery costs, increase delivery speed, and enhance customer satisfaction by selecting an appropriate delivery method. For example, a home delivery service is best for small products. On the other hand, a bulk item generally requires white glove service.

Delivery lockers should only be used for non-perishable products. Retailers can also combine both a locker and a home delivery service. This hybrid approach allows them to accommodate all types of customers and delivery schedules.

Use E-scooters

For retailers looking for an eco-friendly delivery option, consider switching to an e-scooter. It helps save retailers money on fuel, maintenance, and emissions, as well as avoid road congestion.

 In addition, e-scooters can deliver food items directly to customers in a shorter time frame. Food delivery companies, including Uber Eats, are moving towards electric scooters as an alternative delivery vehicle.

Looking for an alternative affordable delivery option? The XSTO ET300P2 is designed to be the ideal solution for delivering bulk items, as it can carry up to 661lbs without any difficulty. Customers have the option of purchasing a scooter separately. It has foot-powered control that allows for ease of movement.

Shift to Automation

Switching to software will greatly streamline delivery operations. Repeated manual tasks like receiving orders, arranging orders, inventory tracking, and payment processing can be simplified through automation.

DoorDash has been able to reduce its delivery times by an estimated 20% by shifting to automation. This also gives customers accurate tracking of their order deliveries, thus, increasing the level of satisfaction with the service offered to urban food retail customers.

Conclusion

Retailers are able to achieve higher levels of profits by combining multiple last-mile delivery modes. Transitioning to the use of e-scooters can eliminate additional fuel and maintenance costs.

Moreover, it can be difficult to manage multiple tasks manually. Utilizing automated software allows for the simplification of the workflow, even in periods of peak times.