Though it’s usually the shortest leg of a product’s journey from producer to customer, final mile logistics count for an outsize amount of shipping costs–up to a whopping 53% of the total cost of shipping. For many shippers, the financial burden of the final mile has left them looking to the latest advancements in supply chain technology to solve the problems of traditional final mile logistics.
These final mile management solutions providers give shippers access to one vital asset in particular: visibility.
Visibility, in short, helps shippers understand their operations at any given point within the logistics process. Without visibility, logistics becomes a high-stakes guessing game, often resulting in missed deliveries and costly mix-ups.
Fortunately, recent advancements in supply chain technology have made it far easier for shippers to access the necessary visibility. As a consequence, shippers of all sizes know that their supply chain logistics require new strategies. Through intelligent allocation, on-call logistics experts, and real-time delivery tracking, final mile management providers give shippers the visibility needed to survive and thrive in today’s cutthroat logistics ecosystem.
Final Mile Logistic Issues Common to Supply Chain Logistics
Any understanding of final mile logistics must include a comprehensive review of the problems within it, including:
- High Delivery Costs and Rising Fuel and Driver rates – With rising fuel prices causing shippers to reassess how they find and maintain capacity, they are struggling to find the skilled, reliable logistics professionals they need.
- Lack Of Transparency Throughout the Process – Visibility isn’t just about delivery tracking and asset management; it’s also about communication. Increasingly, a lack of real-time communication leaves customers feeling distrustful and dissatisfied.
- Inefficient Routes and Backtracking – Poor visibility can mean shippers are left to contend with inefficient routing, which may lead to significant fuel expenses.
- Missed Deliveries – The cost of missed deliveries can easily fall on shippers. If a customer misses a delivery and an expensive laptop gets left in the rain, chances are high that the shipping company will end up on the hook.
- The unpredictability of changes in traffic conditions – As traffic in major cities worsens, shippers often struggle to adjust accordingly. Slow days on the expressway, paired with the growing customer demand for fast, economical shipping, means that shippers with a poor understanding of traffic patterns are losing out.
- More E-Commerce Orders, Increases Returns Rates – As reported by CNBC, retail returns jumped to an average of 16.6% in 2021 versus 10.6% a year ago, according to a survey by the National Retail Federation and Appriss Retail. With an increase in return volume and with customers expecting a positive experience, it’s vital that retailers utilize technology and integrated tools to manage returns.
Understanding the Value of Technology and Integrated Tools
Luckily, advancements in supply chain technology can provide solutions for even the most difficult of final mile logistics crises.
- Analytics to Help with Efficiency: Data-rich analytics can reveal logistics inefficiencies, helping shippers to adjust to accommodate higher fuel prices.
- Improved Communications: Real-time communication between producers, shippers, and transportation partners means everyone stays in the loop and is aligned toward the goal of delivering fantastic and reliable customer experiences.
- Intelligent Allocation: Better allocation means better results. Intelligent allocation gives shippers the tools they need to deliver shipments efficiently.
- Real-time Delivery Tracking: With real-time delivery tracking, supply chain technology providers help shippers ensure on-time, in-full deliveries.
- On-the-Go Adjustments: Shippers can instantly notify of logistics issues with real-time delivery tracking. This visibility allows them to adjust to the real world in real-time, providing them freedom in last mile logistics.
Prepare For Last Mile Issues With Optimized Approaches
In today’s competitive logistics ecosystem, flexibility is critical. With optimized tools and technologies, shippers can access the on-demand supply chain technology solutions they need to maintain maximum visibility. Technology solutions providers can connect supply chain professionals to the insights they need to run more efficiently by providing access to past data and predictive analytics.
However, supply chain technology is only as valuable as its available platform. Partnering with a customer-focused supply chain technology provider ensures shippers can share the benefits of API technology with their business partners and customers.
Improve Last Mile Delivery and Overcome Common Problems by Partnering With OneRail
Final mile logistics have cost too much for too long. With OneRail, an API-enabled final mile solutions platform, shippers can liberate themselves from exorbitant last mile costs and embrace the benefits of the latest advancements in supply chain technology. They also can connect with their customers as the final mile ultimately means the hand-off of an ordered good to an excited recipient. Earning trust in this last high-touch milestone enables businesses and brands to save time and money and connect with happy customers. Schedule a demo with OneRail today, and see what the future of logistics can do for you.
