First Mile to Last Mile Delivery: A Guide to Strategize Your Logistics Journey

You just got back from the supermarket and are unpacking your groceries. You've put away all the fresh produce, the pantry items, and the frozen foods. But then you realize something is missing—you forgot to buy milk! Imagine you consider ordering milk online, which shows delivery within 2-3 days: frustrating, isn’t it?

The online retail industry has seen unprecedented growth in the last few years, especially in the post-pandemic era, which eventually fuelled the demand for same-day delivery. A study by Statista has predicted that global eCommerce sales may cross 8 trillion USD by 2026. This increase in online shoppers has placed tremendous pressure on businesses' first-mile and last-mile logistics across industries. From the moment a product leaves the manufacturer's facility to the point of reaching the customer's doorstep, companies now need to ensure timely, accurate, and cost-effective delivery to improve client satisfaction.

First mile delivery and challenges

The first mile of the logistics journey involves the initial movement of goods from the manufacturer to the distribution center or transportation hub. For different companies, the first mile signifies different things. First-mile delivery for retailers refers to delivering products from nearby distribution sites to storefronts. At the same time, transporting finished items from a factory or plant to distribution hubs is what it entails for producers.

First-mile logistics managers may face a number of challenges during operation. These include:

• Visibility issues in the first mile of operation can trickle down to the last mile, leading to delivery delays and improper product handling.
• Incorrect packaging techniques and materials used during the first mile of delivery can lead to product damage, delivery delays, customer dissatisfaction, and increased costs.
• Inadequate focus given on first-mile delivery experience due to no customers and fewer stakeholders involved in the process, causing delayed deliveries.

Last-mile delivery and challenges

The last mile of delivery represents the final and often most crucial leg of the logistics journey, where goods are delivered directly to the customer. Last mile logistics is also affected by numerous challenges, including:

• Traffic congestion, especially in urban areas, can cause delivery vehicles to stay idle on the road long, delaying deliveries and increasing operational costs.
• Lack of on-ground visibility can prevent managers from making swift decisions when faced with unexpected events.
• Inefficient route planning can cause drivers to take longer, delaying deliveries and increasing fuel costs.
• Struggles in managing large orders due to manual planning.

Mojro's role in strategizing your first mile and last mile logistics journey

Mojro enables optimization from the first to the last mile of business across different industries with its AI-enabled intelligent logistics platform. Mojro's Planwyse is a route optimization solution that allows managers to identify the most efficient routes based on daily loads and other on-ground constraints. Businesses can decide on all types of demand shifts, like ad-hoc requests, with Planwyse. Executewyse from Mojro provides real-time tracking and monitoring capabilities for on-ground vehicle movements, helping managers to make rapid decisions when unexpected events like traffic congestion occur. Businesses can also provide ETAs to clients using ExecuteWyse, enhancing customer satisfaction.

Conclusion

Strategizing the logistics journey from the first mile to the last mile is a complex yet rewarding endeavor that directly impacts customer satisfaction, operational efficiency, and overall business success. Businesses can employ a futuristic logistics optimization solution like Mojro to optimize delivery processes, reduce operational costs, and improve efficiency.

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