Although the term is simple and already widely used, the concept remains foreign to many people. Last Mile Logistics is crucial to modern e-commerce and Omnichannel Supply Chains. Shippr, who made it his warhorse, dissects the phenomenon in this article.
What is Last Mile Delivery?
The Last Mile Delivery (LMD) is a term that is mainly used in Supply Chain Management. Last Mile Delivery is the final step of the delivery process, from a distribution centre to the end-user. Concretely, this involves cutting the delivery chain in two: “long-distance” delivery brings the goods to a depot and then redistributes the goods more efficiently over a shorter distance.
The LMD has been identified as the cornerstone to drive more growth and profits. Thus, the demand to use LMD logistics as a solution for every supply chain businesses in on the rise.
Delivering a parcel from America to Belgium…
The e-consumer may, for example, order a parcel that’s located geographically in America. A “traditional” delivery company will take care of covering most of the distance (by plane, truck …) and will drop the parcel in a warehouse at the entrance of the city or inside the city. From there, other less bulky vehicles will take over the distribution of the goods more efficiently to the exact delivery address in Belgium.
On European level — LaMilO project?
Over the years, it has become a more and more used concept, “delivery over the last mile” has been emulated and now includes a European plan: the LaMiLo project. Founded in part by the European Regional Development Fund (ERDF), this project demonstrates the extent of the potential of an effective LMD.
In fact, consumers are willing to pay premiums for better last mile delivery services, such as same-day or instant delivery(McKinsey and Company, 2016).
Focus that makes the LMD stay ahead in the game?
Last mile delivery is becoming more important than ever due to the surge of online orders. The focus of last mile logistics? Deliver parcels to the end user as fast as possible. People are more often away from home and consumer expectations regarding parcel delivery continue to rise. By focusing on LMD, an exceptional and effective service can be provided by retailers to their customers.
Although the most efficient way of transporting goods over long distances is the use of large vehicles, transport companies soon realized that the last stage of the delivery process was ineffective. Indeed, we now know that the LMD costs about 28% of the total cost of a delivery. In addition to causing traffic congestion with 14% of urban traffic and posing environmental problems (30% of CO2 emissions in the city), this “local” delivery is extremely expensive.
In a society where most urban centers are blocked by excessive traffic, it is necessary to find an alternative solution to allow the transport of goods to operate optimally while smoothing traffic. Shippr relies on an intelligent distribution of its vehicles and optimizes the journeys of each of its Shippers.
Our goal? Offer a delivery solution that fits both customer needs and traffic constraints. Our fleet is made up of deliverers by bike, scooters, cars and vans, which allows us extreme flexibility. No need to move a van to deliver 2 boxes of cupcakes and unnecessary to send a bike for a sofa. We respond to every need by offering the fastest, most efficient and most economical solution for your business.
It is time to wrap. We hope we succeed in giving you more insights on this subject. If you have any questions feel free to reach our Shippr team at “email@example.com”. You can also connect with the team on Facebook, Instagram, LinkedIn!
*Article initially published on Medium.com onMarch 21st, 2019