As the digital retail landscape continues its meteoric rise, the spotlight is firmly on last mile delivery - the final and most critical leg in the journey of a product to the customer's doorstep. In this evolving ecosystem, businesses are faced with a tough decision: to manage the complexities last mile delivery in-house or to outsource delivery services. Here we explore the challenges of in-house last mile delivery, the growing demand for outsourced delivery options, and the benefits of working with a reliable outsourced delivery provider.
The Challenges of Managing Last Mile Delivery
As your business races to keep pace with the booming e-commerce market, you may find yourself grappling with the complexities of managing last mile delivery internally. From soaring costs to inefficient operations, last mile presents a host of challenges.
- High Costs: Last mile delivery is usually the most expensive part of the shipping process because it involves multiple stops with small quantities. The costs of vehicles, drivers, fuel, and maintenance add up quickly.
- Inefficiencies: Delivering to multiple dispersed locations is not as efficient as bulk transport to a single destination. Your operations may struggle to achieve the efficiency of logistics companies that have established networks and advanced routing algorithms.
- Real-Time Visibility and Tracking: Your customers are hungry for live updates on their packages, which means your business needs to seamlessly weave automated location updates into every stage of the delivery process.
- Capacity and Scalability: When peak season rolls around or your business grows, scaling up delivery operations can be difficult.
- Customer Service: Ensuring timely deliveries while juggling returns and complaints can be a burden on your operations team and lead to poor customer service.
- Technology Infrastructure: Crafting and maintaining a last mile technology network for routing, tracking, and customer notifications is expensive, complex, and time-consuming.
- Poor Route Planning: Last-mile delivery efficiency can be hindered by poor route planning. Efficient route planning can cut operational costs and fulfill customer delivery expectations.
The Rising Demand for Outsourced Last Mile Delivery Services
With the rapid expansion of e-commerce and rising customer expectations for fast and convenient delivery, businesses are increasingly recognizing the importance of excelling in last mile delivery. To address the challenges of managing last mile delivery in-house, many retailers and companies across industries are looking to outsource shipping and delivery services. Outsourcing has become a key strategy for companies looking to improve efficiency, reduce costs, and meet customer expectations for timely and reliable deliveries.
A recent survey conducted by FRAYT, involving 600 managers and supervisors from various sectors, revealed that 76.19% of respondents are using last mile delivery services. A notable 81% found these services to be more cost-effective compared to traditional methods, and 80% indicated they are likely to recommend last mile delivery services to others.
Additionally, another survey of 95 supply chain professionals highlighted the significance of last mile delivery in gaining a competitive edge, with 79% of respondents considering it very or extremely important. Importantly, 37% of those surveyed are dedicating more than half of their logistics operations to last mile delivery services, reflecting the critical role last mile plays in their business strategy and the extensive resources needed to maintain it. Outsourcing last mile delivery services is an increasingly welcome solution in minimizing internal workload and optimizing operational efficiencies.
Benefits of Outsourcing Last Mile Delivery Services
Outsourcing last mile delivery services offers numerous benefits for your business. From cost savings to focusing on what your business does best, outsourcing enables you to efficiently manage logistics, cater to customer expectations, and stay competitive in an ever-evolving market.
- Cost Efficiency: By tapping into shared delivery infrastructure and sidestepping the expenses of vehicle maintenance and fuel, your business can see significant cost savings and improved capacity planning.
- Increased Focus on Core Activities: Outsourcing eliminates tedious tasks like routing, tracking, and driver management, allowing your resources to be channeled into strategic and revenue-generating endeavors.
- Scalability and Flexibility: Outsourcing allows your business to quickly adapt to changes in demand and expand delivery capacity by expanding your internal last mile fleet with external drivers, providing the flexibility and resources to succeed in a dynamic market.
- Enhanced Customer Experience: Speedier and more dependable deliveries coupled with the expert handling of goods can elevate customer satisfaction to new heights.
- Competitive Edge: By enhancing delivery capabilities through outsourcing, your business can position itself as a reliable and efficient option in the market, gaining an advantage over competitors.
Elevating Outsourced Last Mile Delivery With FRAYT
In a hyper-competitive market where outsourcing last mile delivery is key to success, FRAYT stands out as a premier partner for your business. Our on-demand delivery platform connects you to a vast network of rigorously vetted professional drivers, primed to handle a wide range of delivery sizes. FRAYT’s DASH service assures prompt, same-day deliveries while real-time tracking keeps customers informed every step of the way. What's more, our platform's seamless API integrations weave effortlessly into your existing infrastructure, making scaling your delivery services a breeze without disrupting workflows.
Take your last mile delivery to the next level by partnering with FRAYT - create a free account or schedule a demo today.
