Last mile: what is +4 strategies for e-commerce

Without a doubt, e-commerce is one of the sectors that grew the most during 2020, gaining absolute relevance, but also throughout LATAM.

Although growth is usually always positive for any online store, it is very important to keep in mind that, on the other hand, the demands and expectations of buyers are also growing and today more than ever in the logistics of last Mille.

What is the last mile?

The “last mile” refers to the final leg of the delivery process of the goods at the destination indicated by the customer. It represents a crucial step in e-commerce logistics, as it greatly affects costs and determines customer satisfaction.

According to the study carried out by , the convenience It is one of the determining factors in the purchase decision. Currently consumers are looking for pleasant experiences within the online store, with a simple and fast delivery method.

In this context, optimize last mile delivery It is one of the most important processes and, above all, the most expensive for companies.

Did you know that costs in last mile logistics can be addressed between
13% to 75% of the total logistics costs?

The last mile is the last link in the online shopping experience and we must bear in mind that it is the only moment where the client has physical and direct contact with a person who represents the brand (the driver of the contracted package or its own logistics).

What are the challenges facing the last mile?

Online shoppers demand fast, flexible, affordable and preferably same-day delivery.
They also ask to be in control of their delivery.
The absence of someone to receive the package at the final receiving point.
The inconveniences and delays generated by traffic, especially in urban areas.
The large number of costs associated with the last stage of purchase.

How can we face them? You must first select a shipping option: define if it will be your own, with couriers or distributors belonging to your company, or outsourced with a specialized company. Or why not? A combination between the two.

4 strategies to make shipments more effective

When making a decision, these four key aspects must be taken into account for the effectiveness of the logistics operation.

1. Planning of delivery routes

A planning of delivery routes it’s crucial to getting to shoppers’ homes quickly and cost-effectively. To do this, it will be key to have the right technology, that is: the same fleet management platform, with optimized routes, that save time and money.

This technology will allow calculating the best delivery route for all your packages, including variables such as traffic, type of vehicle, type of merchandise and the urgency of the shipment, among others.

Because it is important? When making a purchase, . So, the speed of delivery in the last mile is the big difference in all the retailers (sellers) and distributors who compete with each other.

Having technology to plan shipping routes in seconds means products can be shipped almost immediately after purchase. Thus, the company manages to be more efficient compared to the rest, positioning itself better in the market.

2. Fluid communication between the company, the parcel and the customer

The monitoring of the package in the last mile they must be available to the customer, not just the company. Buyers are the most interested in knowing the status of their order, the estimated time of arrival and the information of the carrier.

Empowering customers with this information, which they can consult from their mobile device, is the other great differential in the shopping experience, thus stimulating buyer loyalty.

Always remember that your buyers expect delivery times, just as you promised.

3. business intelligence on last mile logistics processes

Keep in mind that knowing exactly the information of all your shipments will benefit you when making decisions.

It is important to know what percentage of effectiveness of the first visit we have, percentage of failed visits, the areas with the highest number of deliveries, the days in which the most shipments are made, at what time of the day we are finishing the last delivery… Each of these data will allow you establish more effective commercial and communication strategiessince you will know the routines of your consumers.

Today some last mile logistics companies provide dashboard (panels) with all the metrics mentioned to save time and optimize decision making.

4. Measurement and continuous improvement of the customer experience

Have a clear shipping protocol ready with all the potential conflicts of a delivery. It will serve to know what to do in case something unforeseen happens, such as:

If there is a delay in the last mile.
In case your delivery person suffers a traffic accident.
If the person is never at home, among others.

Users may have a bad experience due to the expectation they have of your service, and they will also be left with a bad impression of the brand.

Learn more…

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Bonus track: 4 operating tips for a successful Hot Sale and Good End

Generate a fluid communication with your parcel provider prior to the event to share a projection of the number of shipments you expect.
Increase the capacity of personnel in the sector of picking & packing (preparation, conditioning and packaging of orders) for avoid delays that may end up harming logistics.
Strengthen points and channels of communication with your buyers so that they feel accompanied in case of queries, not only in the purchase process, but also in the logistics of their deliveries.
Try to share in check out (the final stage of the buying process) an estimated delivery datethis will help, on the one hand, to motivate the purchase, not to generate false expectations and, on the other hand, to avoid receiving future claims.

conclusion

Improve customer experience It has to be the most important objective of the companies. Therefore, optimizing all the processes related to the last mile must be the priority both at a commercial and operational level.