Last mile delivery is the last and perhaps one of the most important parts of the logistics process. Specifically, it is the service of taking a parcel or package from a transport hub to its final destination.
The goal of a last mile carrier is to deliver the item to its recipient, in the quickest way possible. This service is widely used by many organizations of all types of industries, who either have their own fleet of delivery vehicles or use grey fleet companies for last mile delivery.
Common problems your last mile delivery fleet may face
If you have your own fleet and use it for last mile distribution services, you will probably have come across some of the following problems:
Cost
Last mile carrier costs are quite high and, sometimes, the customers are not willing to pay for them. Especially during these last few years, where the ‘free shipping’ trend has gained ground by a lot. Thus, retailers and logistics partners are constantly trying to find other ways to cover the financial loss.
Efficiency
Last mile delivery is a complex process and can be affected by many elements. Factors such as incorrect recipient addresses, difficulty finding locations and finding nobody at the final destination to receive the order can lead to delayed deliveries, which frustrates customers and delivery companies alike.
Transparency
Such problems have mainly to do with your drivers. Do you have a way of monitoring where your drivers are? What routes did they take or how long did it take for them to get from one delivery address to another one? Did they make any stops in the meantime? The answers to all those questions affect the time and the quality of your services. And if you cannot answer those questions yet, you should find a way to do so, as soon as possible.
Covid-19 related problems
Due to the recent corona virus, lots of additional issues have occurred for fleet managers, making the smooth operation of their fleets more difficult:
Surge pricing
Because of high demand, combined with the difficult time we are living in, a lot of courier companies have decided to radically increase their prices (surge pricing), taking advantage of the increased needs. Surge charge tactics are illicit and should not be adopted by any organization that operates within a framework of core values. At least, not unless there is a problem keeping the business viable.
New safety rules and contact-less delivery
Covid-19 has forced delivery companies to establish new safety rules for their drivers, such as wearing gloves and masks when in contact with a customer. Moreover, many customers choose the contact-less delivery option, so they avoid physical contact with the delivery driver.
New driver hires
As the demand is highly increased, an organization might need to hire new drivers, in order to accommodate more customers. This means increased financial as well as time expenses for their training, health insurance and potential sick time. Depending on circumstances, these might affect operations and quality of service; even the overall company viability.
Driver psychology
The current situation has affected everyone’s psychology. And, especially for someone who has to go out and work during this period, things might be even worse. So, you must keep in mind the potential negative effects on your drivers’ psychology.
Tips for improving your last mile delivery service
The quality of last mile delivery logistics service is highly dependent on your drivers’ performance. So, in order to minimize the effect of coronavirus related issues, you must ensure that your drivers are in good health and emotional state. Here are some tips for achieving that:
- Make sure your drivers know the new safety rules (train them, if necessary).
- Provide them with all the protection equipment needed, so they can be and feel safe.
- Have your vehicles sanitized, as often as possible
At Veturilo, we believe that, during these hard times, our service can prove to be very useful to fleet owners or managers, in many different ways:
Decreased costs
Using Veturilo you can track the gas levels of your fleet vehicles, so you can minimize gas related expenses and prevent possible fuel theft. In addition, you can get alerts regarding any vehicle issues. This way, you can identify faults and prevent more severe damages to a vehicle with prompt repairs, as needed.
Increased service efficiency and transparency
Remember those questions above? Veturilo has all of these answers! Using our app, you can always know where your drivers are, what routes they take and if they make any unwarranted stops between deliveries. Furthermore, you can get an automated mileage report, per vehicle. This shows how many miles a vehicle has run, for a given period of time.
Increased productivity, avoiding over-hiring
Using Veturilo, you can get an insight on your drivers’ performance and reward your most productive drivers. That way, you can give them emotional rewards and motivation to work harder and better. By doing that you are sure to get the most out of your drivers. And that’s how you will be able to minimize the need for new recruitment.
So, that’s it?
Well, yes it is! If you manage your cost and efficiency and manage it right; if you manage our circumstantial reality without exaggeration, avoid over-hiring and increase your productivity at the same time, you should be on the right track. Some of these steps can be done with your trusty vehicle management platform, keeping it all tidy and cost-effective. So, give it some thought.