Successful last mile delivery and returns
15. April 2021
15. April 2021
We can see that in 2019 more than 500 million packages were shipped to France. For the majority of consumers, delivery is a major criterion when buying a product on the internet because it determines the completion of the purchase journey but also the satisfaction of a customer.
We talk about the importance of the last mile, as the last step in the logistics chain, and which must be flawless at all levels.
In addition, innovation in last mile logistics represents a major economic challenge and a key resource for optimizing urban delivery, but also customer satisfaction.
Last mile logistics can have different aspects depending on the characteristics of an individual's supply chain, but here are a few examples:
Today, consumer expectations for delivery are more and more important; thus delivery becomes a powerful lever in the field of e-commerce.
For online shoppers, the whole value of a delivery service is in the last mile. The purchasing experience is directly linked and judged to the quality of the delivery offered by the e-merchant.
In addition, delivery is recognized as being the first source of stress for customers when shopping, so the last mile appears to be a key step in customer satisfaction. Indeed, it is pointed out that 55% of online buyers no longer order on an e-commerce site following delivery problems.
To remedy this, e-commerce players are banking on the promise of shorter delivery times to ensure a successful delivery experience in the age of omnichannel. However, the major challenge of the last mile remains customer satisfaction, which is based on the ability of the carrier service provider to offer a flawless experience.
It becomes more than a simple service to offer, but then the last point of contact with the consumer. The last mile thus represents the face of customer satisfaction.
Arguably, then, the last mile is shaping up to be the real weapon of war for e-commerce today.
In a world in perpetual change and where competition as well as services are increasing, the various players in the Supply Chain wish to reinvent their offer, to be as close as possible to the needs of consumers.
Among the choices of services, there is appointment setting in reduced time slots, delivery in one hour, 7 days a week, on-demand, etc ... The transport world is listening to the smallest requests from its retail customers and their consumers. The challenge is to offer a personalized service, which will then be a guarantee of the performance of an ever more effective and efficient last mile delivery.
In addition, it is also important to be able to offer a personalized and digital service to consumers.
Nowadays, omnichannel distribution channels and immediacy are at the heart of the consumer's buying journey. And so that the experience is flawless, the transporter, an expert in the last mile, is working on the digitization of its services in collaboration with online stores but also warehouses, through mobile applications, order modules integrated into online sales sites, online appointment booking, tracking, reporting, interactive kiosks making it possible to collect data but also to get closer to visitors, in order to know their interests and their satisfaction. Thus, urban delivery has no other choice than to support the phygital revolution (physical point of sale integrating digital data and methods) of connected commerce.
The last kilometer represents 20% of transport costs for companies, because the more a commodity approaches its final destination, the more the transport cost increases; the overall cost of last mile delivery grows by around 10% each year and is estimated to reach 2.6 billion euros in France by 2025 according to estimates.
Thus, the last mile is considered to be a significant economic issue for retailers. The challenge is to optimize it effectively by choosing a responsible and innovative carrier service provider, who will be able to both simplify and also optimize this last link in the logistics chain.
In order to reduce the cost of last mile delivery, the use of returnable handling units is also recommended. Thanks to a good management of the return of these returnable packaging, you will be able to reuse these handling units, which represents a considerable saving of money, and leads you to follow an ecological logic in your deliveries to limit your waste.
Each year, delivery is responsible for the emission of more than one million tonnes of CO2 and more precisely 25% of CO2 emissions in urban areas.
In order to ensure good delivery, it is therefore necessary to know how to measure its environmental impact, especially in a context of global warming, but also to raise awareness among consumers about the responsible approach of distributors. To meet this demand, last mile professionals seek to offer their customers clean delivery without CO2 emissions through concrete actions, such as:
In addition to this, measures are being put in place to restrict access to polluting vehicles within city centers. These measures mainly concern vehicles intended for parcel delivery, which are now responsible for greenhouse gas emissions of 30%.
The e-commerce sector has been booming in recent years, but in return it is beset by incessant demands from consumers in order to obtain more convenience and faster, more precise and punctual deliveries. However, there are factors that allow e-merchants to be able to successfully deliver last mile deliveries to their customers. Here are a few :
To achieve the best possible last mile delivery, retailers but also carriers are seeking to resolve various issues.
These include customer satisfaction when finalizing a buying journey using a digital and personalized delivery service. There is also the importance of knowing how to control the economic cost of the last mile without affecting the quality of the service offered and finally monitoring its ecological impact in order to be able to reduce its carbon footprint while meeting consumer requirements.
You want to know more : Contact the Monstock team