Gartner, analytical and research company predicts that by 2025, 80% of B2B sales interactions between suppliers and buyers will take place in digital channels. According to their survey in late 2021, 83% of B2B buyers prefer placing orders or paying for goods through digital channels.
As consumers increasingly shift from in-store shopping to online platforms, first-mile and last-mile deliveries, have become crucial factors that can make or break a company’s success.
As we specialize in the first mile, not forgetting about last mile, this article will explore the challenges of first mile delivery. We will tell you about its importance in retaining customers, and strategies that production companies can use to optimize their transport management in this digital age.
First Mile & Last Mile Delivery – what is it?
First-mile delivery refers to the initial stage of the logistics chain, where goods are picked up from the manufacturer or supplier and transported to a warehouse or distribution centre.
In contrast, last-mile delivery is the final step of the journey, taking products from the local distribution centre directly to the customer’s doorstep.
Both require distinct strategies for optimization, connected efficiency in the first mile can lay the groundwork for success in the last mile.
Vans operating in on-demand transport system provide flexibility which is crucial for e-commerce sector. Last but not least, they can provide express deliveries to the distribution centres.
Challenges of First Mile Delivery
- Supplier Coordination: Inconsistent production schedules and delays at the supplier’s end can affect the timing and cost-efficiency of first-mile logistics.
- Bulk Shipments: Managing large-scale, bulk shipments presents logistical difficulties in terms of storage, handling, and transportation.
- Operational Costs: The first mile can be costly due to storage fees and the need for specialized transportation equipment.
Strategies for Optimizing First Mile Deliveries
Choosing the Right Transport Partners
On-demand Services: Consider partnerships with on-demand delivery services during peak times or for special requirements. When something goes wrong in your supply chain, they should be able to react quickly 24/7 and prevent delays.
Experience and trust: Evaluate potential partners based on their experience in providing services for your sector and the knowledge about importance of solutions suited to your activity. We are a transport provider with over 11 years of experience on the transport market.
Reverse Logistics: Don’t forget about solutions for those who want to return your products. Cooperate with a transport partner that provides solutions in a reverse logistics model so you can resell your products swiftly after the return.
Leveraging Technology
Route Optimization Software: Invest in software that can analyse various factors like traffic patterns and road restrictions to suggest efficient routes. If you are cooperating with the outsourced transport partner, this should be their responsibility to plan all routes efficiently.
Real-time Tracking: Implement real-time tracking systems to enhance transparency and build consumer trust. At Quote&GO, every transport is monitored by internal, specialized department and the technology we created, provides real-time status of your shipment on any device. You can count on us 24/7.
Diversifying Delivery Options
Scheduled Deliveries: Allow customers to choose specific delivery windows for their needs. This is crucial in B2B trade, so the products you provide, can fit to their working hours or assembly line plans.
Consolidated Deliveries: Opt for grouping deliveries to specific areas on specific days to maximize efficiency and lower costs. If your customers are not looking for urgent deliveries, ask your transport partner for a delivery with consolidating your cargo with others. This can allow you to get even 40% lower price than with a direct shipment.
Customer Education: Educate customers on how they can contribute to smoother deliveries by providing detailed instructions and being available during scheduled delivery times.
Last-Mile Delivery
Last mile delivery solutions are a final leg of the journey, when your products arrive to its final consumer.
This is a moment where you have to meet customer expectations. When you are mostly focused on selling products in the B2C model, your primary focus should be on cooperating with right e-commerce operator who will offer various options of pick-up for your products, including locker pick-ups which becomes more and more popular across whole Europe.
If you sell your products online in a B2B system, consider integrating your online shop with on-demand delivery platform. For example, we provide integration of Quote&GO with marketplaces so that your customers can see the price of the shipment instantly and book a delivery within 3 minutes. Thanks to that, you provide great customer experience and drive sales.
Conclusion
The first mile may not be as visible to consumers as the last mile, but its optimization is crucial for a streamlined, cost-effective, and efficient supply chain. By focusing on both the first and last miles of delivery, production companies can be up to the continuously growing e-commerce landscape.
A well-optimized first-mile strategy sets the stage for efficient last-mile deliveries, leading to customer satisfaction and long-term business success. Therefore, it is vital for companies to adopt an approach that covers the entire journey from the supplier’s door to the customer’s doorstep.
