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

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The online retail industry has seen unprecedented growth in the last few years, especially in the post-pandemic era. A study by Statista has predicted that global eCommerce sales may cross 8 trillion USD by 2026. This increase in online shoppers has pressured 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 other 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 several 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.
  • There is a need for more adequate focus on the 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 for a 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.

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

Mojro enables optimization from the first mile to the last mile logistics of business operations across different industries. Mojro's Planwyse, an AI-powered route optimization solution, allows managers to identify the most efficient routes based on daily loads and other on-ground constraints. Businesses can arrange all 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 offer 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 operating costs, and improve efficiency.

 

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