With the recent study and upwards growth of the e-commerce industry, the global marketplace has become a new hub for delivery companies. A study shows that about $861 billion is spent by consumers on shopping online. This is only about to rise over to 44% and above in the coming year. That said, the logistics company needs to be able to meet the demands of the delivery systems, which imposes many delivery challenges when it comes to delivering last-mile shipping.
Here are some of the challenges that last-mile delivery company faces:
- A lack of visibility
As part of the final mile delivery system, one of the most important prerequisites for ensuring customer loyalty is visibility itself. Buyers want the knowledge of the location of the package and when it will reach them prior to it even being shipped out. Many businesses are offering tracking codes in order to gain customer loyalty. However, this aspect is not enough for a generation where technology rules every aspect of their lives. The real-time demand information on the package is the location and required to witness every step of the last mile delivery company and its processing. This is one of the biggest challenges of the logistics industry at the moment.
- High delivery costs
Last-mile shipping companies tend to get expensive goods for the businesses and the customers. Businesses need to set up an infrastructure that supports the timely delivery of all the packages to the customers, but this can be a very expensive big-ticket item. Additionally, shipping and logistics companies need to allocate money for extremely complex rules, Field deliveries, extra stops along the delivery route and cover drivers’ salary, and the operation of a fleet.
- Late deliveries
By far, the biggest challenge faced by the first mile and last-mile delivery systems in place during the pandemic and even prior to that was late deliveries. The inability to deliver couriers by sticking to the predetermined timelines can get extremely expensive for businesses. A delay in delivery could harm the brand’s reputation and thereby decrease their customer loyalty and, in turn, affect the bottom line. It is quite important to have a robust last-mile delivery plan in place. It helps to make timely deliveries even at the last minute.
- The use of outdated technology
Another huge challenge of being in the last mile delivery company is to find that nearly half of the global transportation and logistics companies today miss use of outdated technology. This technology offers very little help to those combating already too many delays and the highest shipping costs incurred. However, suppose there is a GPS tracking system installed within the vehicles and another internet of things. In that case, it is able to monitor the entire last mile journey and predict any roadblocks in the way.
These are some of the major challenges faced by last-mile delivery companies.