October 8, 2024
Last mile delivery is “evolving,” according to Supply Chain Management Review. The drivers of change are modern technology, growing demand, new regulations, and high customer expectations. The shippers that will be poised to win market share and grow in the future are the ones that embrace the evolution — and build middle and last mile delivery programs that meet the modern moment.
Below, we explore the latest headlines from across the delivery landscape, including news on driver demand, holiday season expectations, growth in the 3PL industry, spiking demand for solar panels, plus much more. Continue reading to learn more about how this news impacts middle and last mile delivery, and get in touch with us if you’re looking for a partner to help execute ambitious middle and last mile delivery plans.
The entire transportation industry is currently facing a significant shortage of drivers. The American Trucking Associations estimates that the industry is short about 60,000 drivers. Even worse, that driver shortage is expected to double by 2028 without a significant change in trajectory.
What does this mean for last mile delivery programs? This means that it will be harder than ever to hire quality drivers. Last mile delivery drivers are uniquely positioned to be the face of organizations. They play a hybrid customer service role in creating outstanding experiences, reinforcing loyalty, driving repeat purchases, and prompting word-of-mouth referrals. Hiring quality drivers can make all the difference in the success or failure of a last mile program.
At FRAYT, we prioritize hiring high-quality drivers so our customers get the results they want from last mile delivery. We use a rigorous vetting process to ensure we only hire the best of the best, including a small application fee to ensure driver applicants are committed to the work. We also use driver incentives and a preferred driver program to encourage ongoing excellence across our team.
In the introduction, we noted that increasing demand is one of the driving factors behind the evolution of last mile delivery. At no time is that more true than during the holiday season. This year, consumers are expected to spend more than last year. Mastercard is forecasting year-over-year growth of 3%.
However, here’s the challenge with these expectations: They are just that — expectations. A business driven by year-end demand can’t afford to invest in vehicles and hire drivers only to find that Mastercard’s forecast was overly optimistic. It’s better to partner with a last mile delivery service that can provide on-demand access to a diverse fleet of vehicles plus high-quality drivers that can be used to scale a last mile delivery program up or down as demand dictates.
3PLs are dealing with more than just an end-of-year spike in demand. Growth in e-commerce is driving massive year-round demand for third-party logistics services, which means both opportunities and challenges for 3PL providers.
The biggest challenge is securing the capacity to manage this rapid growth. This is particularly true in the last mile, which is more intensive and expensive than other legs in a shipment’s journey. 3PLs are now turning to delivery partners that can help with rescue and recovery efforts when a pallet gets left behind mistakenly or when there’s an urgent delivery request from a high-value customer.
When 3PLs form last mile partnerships with high-quality providers, they can secure capacity and quality drivers as needed without disrupting their full-time teams. It’s a win-win situation that allows 3PLs to seize the opportunities before them.
More and more businesses and residences are turning to solar power, creating a unique and pressing demand for industrial supply last mile delivery. Solar power providers can take advantage of this increase in demand by building out delivery programs that maximize their installation capabilities.
But it’s hard to build out a 100% in-house program. As with so many delivery use cases, it’s far better to work with a delivery partner that can provide on-demand access to a diverse fleet of vehicles and high-quality drivers in major markets — allowing solar panel installation companies to schedule as many appointments and complete as many jobs as possible.
Modern consumers continue to want fast and inexpensive (or free) shipping. If retailers can’t provide it, those consumers will seek alternatives.
The dilemma is that retailers can’t offer fast and free shipping if it cuts too deeply into margins. And they can’t offer slow, expensive shipping if it means losing market share. The best solution is partnering with middle and last mile delivery service providers that can help keep costs in control. The benefit is that retailers get third-party delivery expertise, lower costs, and the ability to better align with consumer expectations.
At FRAYT, we serve as a go-to middle and last mile delivery partner to industrial suppliers, manufacturers, construction companies, 3PLs, logistics service providers, retailers, and others. We provide access to a diverse fleet, high-quality drivers, modern delivery management technology, plus a presence in major markets across the United States.
Don’t waste time and money trying to master middle and last mile delivery alone. Get the ROI you expect by partnering with FRAYT to ensure you can meet customer expectations, seize new opportunity, and scale for the future. Start shipping now.
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