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How to Control Last-mile Delivery Costs?
Delivering orders to customers on time helps you gain their trust and put good business numbers. It makes customers buy your products again and again. Last-mile delivery refers to the last step of the delivery process when your goods get delivered to the customer’s home safely.
Nowadays, businesses are competing to establish their brands with fast last-time delivery services. But it is not that easy as you can face complex routes, transport and labour issues, and so many other problems. It makes the delivery process expensive and difficult to execute.
Let’s discuss some of the ways to control last-mile delivery costs:-
1. Route Optimisation
The smartest way to control last-mile delivery costs is route optimisation. It refers to selecting the shortest route to the delivery location. You can plan your delivery routes before the delivery time to decrease fuel costs. It helps you extract more work from delivery personnel and has an idea of weather, and road blockages at the time of delivery. The emergence of the GPS tracking system has made this an easy task.
This way, you can deliver more efficiently and reduce costs together for more benefits.
2. Multiple Delivery Options
Providing multiple delivery options can decrease your last-mile delivery cost. It is the process of providing different delivery options to your customers. They can choose the one they are willing to. For example, if they are not in a hurry, they can select later-day delivery rather than the same-day delivery option. It will help you manage delivery time frames. You do not have to go to multiple places in the same time frame.
3. Enable Real-time Tracking
Real-time tracking systems have made last-mile delivery an easy task. It can help control the delivery cost at the same time. If the consumers get updates about their orders, they will rely on you more. They will get notifications about their orders being shipped or estimated time of arrival. It will reduce the chances of failed delivery and improve productivity.
4. Implement Auto-Dispatching
When you allocate dispatch tasks manually, it becomes a hectic and time-consuming process. On the other hand, automatic dispatch systems are helping deliveries get organised better. It supports more deliveries in the same or less time. Auto dispatching systems with the route optimisation technique can bring down the usual delivery cost-effectively. It assigns the drops automatically to the concerned agents. You can get more benefits by auto dispatching than traditional dispatching.
5. Delivery Verification
Delivery verification helps you know whether your package was delivered to the right customer or not. It streamlines the overall steps of delivery so well. Your delivery agents can take signatures, barcodes, QR codes, and pictures for proof. This will enhance your customer trust in your service and they will order again from you. Collecting data is just to keep things clear and have a record of delivery for future planning. This way, you can work on cutting your last-mile delivery cost as well.
In short, you will get these benefits from Delivery Verification:-
-Bring a better consumer experience.
-Decrease the chances of returns and replacements.
-Cut down the cost of paperwork and other manual tasks.
6. Reverse Logistics
Some last-mile delivery companies do not think about managing returns. It brings a situation where customers are scared to buy again as if they have defective products. They get dissatisfied with your last-mile delivery services. It impacts your revenue and brand image as well. You can lose a lot this way, so include reverse logistics in your delivery process. It will improve your customer’s gratification and they will trust your service more than before.
7. Decentralised Warehousing
Decentralised warehousing is one of the best ways to reduce last-mile delivery costs. You can make warehouses in between the urban locations to get more local customers. In this way, delivery agents can deliver things to customers more efficiently. Long-distance traveling issues would get solved by having decentralised warehouses and last-mile delivery costs would also get lowered. Your customers will get their orders on time, helping you build a strong bond with them.
8. Enhance Load Distribution
Some delivery companies do not manage their vehicle load capacity smartly. It increases transportation costs with fuel and other things. You can utilise the vehicle’s space effectively to reduce last-mile delivery costs. Try to use the space available in your vehicle with enhanced load distribution. Improving the way you load ordered packages can reduce your cost. You would be able to deliver more in less time. This will give you a chance to get more satisfied customers with your delivery.
Conclusion:-
We have discussed some of the methods of controlling last-mile delivery costs. It can help you deliver cost-effectively and receive customer gratification. Modern-day technologies like location tracking and others are also available to support making a profit with good delivery services. You can try the best and on-time delivery partner like handover to let these methods work for you. It provides last-mile delivery services with less cost and more smiles.