How To Solve The Last Mile Problem?

By Author: Navata SCS
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The key goal of the last mile distribution is to deliver the package as soon as possible to the customers. In the logistics & supply chain sector, the last mile is considered the most critical part.

Challenges related to the last mile delivery:

Restricted visibility

One of the major issues related to the delivery of the last mile is limited visibility. It's because fleet owners in most countries come from an unorganized sector that causes a lack of visibility.

Smooth distribution required.

The demand for the next day and the same day of delivery is increasingly growing. On top of that, consumers, particularly millennials, often demand versatility and customization along with real-time monitoring.

Cooperation between the customer and the delivery.

It can happen many times that the customer is absent.

These unfavourable situations result in wastage of time and resources. The package is also exposed to the risks of damage or theft.
Route enhancement.
The primary challenge for a fleet is to ensure efficient delivery route in

Route enhancement.

The ...
... primary challenge for a fleet is to ensure efficient delivery in order to make delivery more profitable. order to make delivery more profitable.

Loading, unloading, installing.

Many packages require specialized unpacking and assembly on delivery. Shippers are put in jeopardy to ensure that the final product is the same as they promised.

Key metrics to evaluate last-mile logistics delivery.

Fleet efficiency must be controlled in transport management and distribution management. Every manager is hard at work with features like lower delivery volumes and multiple destinations.

Like,

How do we know if we have used all capacity?
Where do we have to improve in the fleet?

Not a simple job, but we can better control the efficiency of this ultimate mile supply chain thanks to these 5 main metrics.

1. Cost per Km.

It determines the cost of driving one Kilometer. It is

(Driver cost + vehicle cost + Fuel Cost ) / (Total Distance (Km)

2. Fleet Capacity Utilisation

Monitors how much capacity has been used up.

Used capacity/ Total Installed Capacity.

3. Legs per trip, km per leg

The leg is the part o transportation route that is between two successive steps.

For example, if you are travelling to 7 stores in two trips then your legs per trip equal 7/2 = 3.5 legs per trip.

And, if trip 1 is of 18km and trip 2 is of 25 km, then km per leg equals ( 18 + 25) km/ 7legs = 6.1km per leg.

4. Average Service Time.

The average time is the time spent at a store to unload cargo.

= (Total service time at the store) / ( Total number of delivery)

5. Planned vs Actual Stops.

When a driver makes unplanned stops, he is delaying the complete plan, changing time windows and decreasing service levels.

You can calculate it as,

(Number of actual stops) /( Number of actual planned stops)

But how do we solve the problem of the Last Mile delivery?

But instead of boggling your mind with the maths, I’d suggest your use the easier route. Get the SOFTWARE.

Here are the goodies,

Route optimization

The most effective routes are calculated by several factors such as traffic, place, ability and time.

Automatic dispatch

The auto-shipment role helps to handle all hot-shot activities and orders efficiently.

It assigns the right driver at the right time for the correct mission and reduces service and job costs to a minimum.

Proof of delivery

You can complete the delivery using the new miles delivery management program with the aid of in-app signatures, images, notes and bar code.

Real-time visibility

The system helps to boost the visibility of the fleet. You can see where your vehicles are and how many of them are still idling.

Proper appointment scheduling systems

The software streamlines all tr shipping & delivery operations thus making the overall operations efficient allowing you to serve a large number of customers at once.

So, It is high time you take steps to modernise your delivery system.

Navata SCS provide a complete high quality supply chain solutions in tune with changing needs of the clientele through innovation, state of art infrastructure and reliable service. Our expertise will enable us to optimize costs and efficiency for your e2e operations including scs planning, distribution, warehousing, reverse logistics.