Addressing last-mile delivery challenges in the UK is crucial. At its core, this last step within the transport chain involves combining several shipments from a common location into one trip in order to then be delivered individually and one after the other. This last-mile is regularly a real headache for e-retailers. It requires taking into account a myriad of financial and logistical criteria to be implemented correctly.
These are the Challenges for Last-mile Delivery in the UK
In order for the last mile to work efficiently, the tour needs to be planned well in advance. This is the only way to minimize the effort and, therefore, the costs. Logistics companies have to do these things. As soon as the delivery begins, other actors come into play: other road users who make a direct and efficient journey more difficult, and ultimately the recipient of the package.
The parcel deliveries do not always meet someone to hand over the goods. If it is not possible to deliver the shipment in the neighborhood, redelivery will be necessary. That costs time and money. Overall, personnel costs make up the largest part, alongside operating costs and standby costs for the vehicle and storage space.
More delivery traffic in the cities also means that things are getting tighter for individual delivery services. The larger number of service providers have to share the space and times for loading and unloading. In addition, there are strict access regulations and specified time windows in pedestrian zones. More traffic often contradicts the ideas, wishes, and requirements of cities and their populations.
More and more logistics service providers are therefore increasingly relying on alternative drives, for example, a company now uses numerous electric vehicles, or alternative delivery methods.
Last-mile Delivery Costs in the UK
The package leaves mass transport where strong economies of scale are achieved for the unit delivery of a package with a dedicated mode of transport. Unit package costs therefore increase exponentially as the order gets closer to the end customer.
This last kilometer represents, on average, 20% of the parcel’s transport costs, which is considerable given the distance a parcel can travel to be delivered. Different methods can allow you to optimize the costs associated with this stage of the delivery process.
Reduce costs linked to unit deliveries
In order to limit the exorbitant costs linked to unit parcel deliveries, you can optimize delivery options, which allow you to continue consolidating shipments in one place. So, by favoring delivery to a relay point you will be able to reduce the logistics costs linked to the last mile by dividing them by the number of packages which will be left at this address.
For e-commerce stores that have physical points of sale, you can set up a click and collect system which will allow your customers to come directly to pick up the products ordered in store. As we will see below, it is obvious that these delivery methods should not be exclusive. Your customer needs to have a choice. However, you can highlight them more through lower shipping costs, which will encourage Internet users to favor this last mile delivery method.
Outsource to Specialized Service Providers in the UK
If your order flows are not large enough, unit delivery costs will remain high regardless of the delivery options you make available to your customers. One of the solutions is to outsource this part of your activity to logistics providers specializing in e-commerce. By consolidating their customers’ shipments, these service providers reduce unit costs and are able to offer you prices negotiated with carriers.
Solutions for Last-mile Delivery in the UK
Logistics service providers already rely on modern technologies, for example to plan routes more efficiently with Courier Software. There are also technical aids for drivers while driving, such as GPS. In addition, the companies are working on alternative delivery methods. Instead of transporting the packages to the front door, some logistics companies target parcel stations or shops where they place the shipments for collection.
Courier Software
At a minimum, delivery teams in the UK should be mobilized with Courier Software, which allows them to provide the required services. This will ensure they are prepared for what is predictable and able to prevail over what is not.
You should know that it will take time to fully scale delivery services, especially in the last mile, no matter what is taken or left and what technologies you decide to employ to scale efficiency. There is a significant amount of resource planning, resource investment and workforce expansion required.
You can’t simply hire 10 people today and increase your fulfillment capacity tenfold tomorrow. What can be done, however, is to very strategically implement technologies that increase the efficiency of the current workforce and maximize resource utilization almost instantaneously from the point of fulfillment to the last-mile delivery.
Conclusion
So, addressing last-mile delivery challenges in the UK is crucial. Choosing the right robust, enterprise-grade mobility solutions can streamline time-sensitive operations in days or weeks. Then, as time and resources allow, we can begin using a famous technological service such as Courier Software to help improve last-mile processes.
