Last-mile delivery is the final part of every order’s journey. It’s the process of getting a package from the closest warehouse or hub and delivering it directly to the customer.
While it was once about delivering each parcel as quickly as possible, there are now many other factors to take into account, including environmental impact and costs.
For retailers to design the perfect last-mile delivery service, they must now understand their customers’ expectations and align this with realistic delivery options.
Last-mile delivery challenges
Here are some of the greatest considerations that bring challenges to retailers’ last-mile fulfilment operations:
- Lowering carbon emissions
- Geographical coverage
- Reducing costs
- Improving productivity
- Introducing technology
- Market inflation
- Changing consumer habits
How to perfect your last-mile delivery service
These steps will help you to determine the perfect last-mile delivery service for your business.
- Identify your customers’ expectations
There is no point in assuming that every customer wants 30-minute delivery and spending a fortune to make this possible. Instead, begin by understanding how quickly you would need to deliver for your customers to see it as ‘fast’.
- Understand your target market
It’s not all about speed. It’s a great idea to carry out market research, so you can gain a more in-depth understanding of your customers’ priorities. For example, if 80% of them would be willing to wait longer for a more environmentally-friendly delivery service, this is something you would want to know.
- Do your research
There are countless options for last-mile delivery available, ranging from small delivery companies, to delivery robots and electric vans. Consider how beneficial each could be for your business and don’t be afraid to explore combining multiple options.
- There’s no ‘one-size-fits-all’ approach
With fulfilment, you may have to design different last-mile delivery services. For example, in Milton Keynes, Co-Op has been able to use Starship delivery robots for last-mile delivery. In the more remote areas of Scotland, this would not be doable, or efficient… however it doesn’t mean it is not a good idea in Milton Keynes. Instead, you should understand the best approaches in each area where you have customers, creating a combination of these to meet demand and expectations.
Questions to ask when deciding last-mile delivery options
When working out the best approach for last-mile delivery, ask yourself these questions:
- What is the customer demand in each area you deliver to?
- Do you need a different last-mile solution for different areas? (E.g. cities, towns, villages)
- What do shoppers consider to be ‘quick’?
- What are the benefits of each approach?
- How much does each approach cost?
Read the Modern Retail Guide to Ecommerce Fulfilment
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Holly brings a wealth of experience in both print and digital publishing. As Modern Retail’s Content Editor, Holly is passionate about helping independent retailers to thrive in today’s ever-changing market.
