As online shopping has become increasingly common, the process of delivering a package from a warehouse to a customer's doorstep—also known as the "last mile" of delivery—has become key to customer satisfaction. This critical final leg of the supply chain is not just about moving goods; it's an opportunity to demonstrate commitment to innovation, sustainability, and improving customers’ trust.
When your company creates (or updates) its last-mile delivery plan, there are five important factors to keep in mind: scalability, package pricing, technology, sustainability, and trust. Below, we’ll delve into each factor and discuss how it should inform your last-mile delivery plan.
1. Scalability
A robust last-mile delivery system is set up in such a way that it can quickly scale up or down. E-commerce demands can surge unexpectedly, so you need to be prepared to adapt to fluctuations. Local courier networks and regional carriers can play an important role in extending delivery capabilities beyond what national carriers can offer. This approach simultaneously increases your supply chain’s resilience while also supporting local economies.
2. Package pricing
Your e-commerce success can be dramatically affected by how much it costs to ship each package. Fortunately, innovative strategies have played a big role in making last-mile delivery accessible, affordable, and competitive.
When major carriers introduced dimensional weight pricing to ship packages, e-commerce players were heavily incentivized to rethink their packaging in order to minimize shipping costs. Now, retailers can get better shipping rates when they prioritize efficient packing designs and reduce unnecessary waste. This approach has a number of benefits.
Not only does this new approach lead to lower packing costs, but it also contributes to a more sustainable e-commerce ecosystem. It even demonstrates a respect for resources, as it ensures that the financial and environmental costs of shipping are kept in balance. To take full advantage of these benefits, be sure to carefully review your packaging, downsize it when possible, and eliminate any unnecessary elements.
3. Technology
Technology is the backbone of any forward-thinking last-mile delivery operation. From sophisticated tracking systems that provide customers with real-time updates to route optimization algorithms that reduce delivery times and carbon emissions, technology plays a crucial role in the delivery process. When you plan your company’s last-mile delivery solution, we encourage you to think about how you need and want your digital solutions to function.
Of course, AI and machine learning have also become increasingly important to delivery networks as they can predict potential challenges and make routes more efficient. At Koorier, we are proud to harness these tools, but we don’t just use them for the sake of improving operations. Instead, they help us to create an environmentally conscious delivery system that serves both our customers and the planet, ultimately leading us towards a more connected and sustainable future.
4. Sustainability
When planning out your last-mile delivery solution, it’s important to think about how sustainability fits into the picture. The environmental impact of fulfilling customer expectations cannot be overlooked—especially since around 50% of Canadian shoppers want companies to care more about environmentalism.
Environmentally conscious courier companies can help to maximize your business’s sustainability. The move towards electric delivery vehicles, the optimization of routes to reduce fuel consumption, and the exploration of package consolidation points are tangible ways for courier companies to minimize the carbon footprint of last-mile logistics. As a result, when choosing which courier companies you’d like to work with, it’s a good idea to take a look at their sustainability initiatives.
5. Trust
Finally, at the heart of all these factors lies trust.
Trust is built through consistent and reliable service, transparent communications, and an unwavering commitment to ethical practices. In the context of last-mile delivery, this means not just delivering packages on time, but also being transparent about each delivery’s environmental impact and actively working to minimize it. It means taking steps to reduce packing costs so that your customer is not faced with unnecessary fees. It’s about respecting the trust that customers place in us—both retailers and courier companies—with every order.
To retain your customers’ trust, it’s important to make sure that your last-mile delivery plan prioritizes each of the other four factors listed above. That way, your customers will know that they can count on you to ship their package via an efficient courier company that values them and the environment.
A Strong Last-Mile Delivery Plan Leads to Happier Customers
When designing your last-mile delivery plan, it is important to reflect on all five of the factors listed above. A plan that is usually efficient but which can’t scale for the holiday rush will leave your customers stressed during what often feels like the most hectic time of the year. Likewise, a solution that doesn’t consider sustainability will needlessly harm the planet (and might leave a sour taste in customers’ mouths).
At the end of the day, all five factors lead to more responsible behavior and better customer service. As a result, if you focus on them, you can create a last-mile delivery service that is both profitable and sustainable for years to come.
