What Is a Last-Mile Supply Chain?

Transporting products from a warehouse to customers’ front doors is no small feat. While every stage of the shipping process has its challenges, nothing is trickier than the last leg of the supply chain, known as the last-mile supply chain.

Last-mile supply chains have always been challenging, but the recent surge in eCommerce shopping and customer expectations for speedy delivery makes it even more difficult to pull off.

It’s up to businesses to design effective, profitable last-mile supply chains that not only deliver on customer expectations but also prevent issues in the upstream supply chain. Let’s look at how these last-mile supply chains work and how businesses can overcome the thorny issue of last-mile operations.

In this article:

• How a Last-Mile Supply Chain Works
• Overcoming Common Last-Mile Supply Chain Challenges
• Overcome Last-Mile Challenges for Good
• Frequently Asked Questions

How a Last-Mile Supply Chain Works

Photo by Tiger Lily from Pexels

A supply chain is the processes and resources involved in getting raw materials or goods from a supplier, producing products, and distributing them to end consumers. Supply chains have many moving parts, requiring businesses to balance multiple vendors, technologies, and transportation methods.

Supply chains are complex enough, but they can become even more so in the final mile. A last-mile supply chain is all about taking products from a local fulfillment center or warehouse and transporting them to the customer.

There are a lot of opportunities for the supply chain to go awry at the last moment. Your team has to deliver goods to dozens of different addresses via multiple routes and delivery vehicles, making this an incredibly complex process at scale.

However, the last-mile supply chain matters because it’s most visible to the customer and has a substantial impact on customer satisfaction. It’s also the most costly leg of the supply chain, so optimizing this stage can help you reduce expenses over time.

Overcoming Common Last-Mile Supply Chain Challenges

Photo by Craig Adderley from Pexels

Everyone wants an efficient last-mile supply chain, but achieving efficiency is easier said than done. Plan for these common last-mile supply chain issues to preserve profits and protect customer trust.

Tight Timelines

Deliveries affect everyone. We automate and optimize that last mile, where meeting customer expectations drives positive brand experience. Learn more about planning more efficient delivery routes here! https://t.co/u5S2BqHHir pic.twitter.com/mJtVFqyNmH

— Wise Systems (@goWiseSystems) February 27, 2023

Last-mile supply chains are infamous for requiring fast turnaround times. Without the right system in place, your drivers can easily get overwhelmed.

The Wise Systems delivery automation platform helps businesses maximize their limited time through automated dispatching and route planning. Wise Systems gives you real-time insights into your fleet locations and performance, helping you maximize efficiency with ease. The system even helps you respond to issues in real-time based on live data, allowing you to run a more resilient and effective last-mile fleet.

Book a demo today to discover how the Wise Systems delivery automation platform can boost your last-mile supply chain’s efficiency.

Congested Urban Areas

You can plan the most efficient routes, only to have traffic, construction, and accidents get in the way of your deliveries. That’s why it’s so crucial for last-mile fleets to have real-time data and AI-powered routing to make necessary adjustments. Otherwise, your team will spend hours sitting in traffic.

Wise Systems plans optimized routes that execute your business’s unique routing strategy. Best of all, the routes adjust in real time, and the system’s drag-and-drop interface allows you to modify routes as you see fit. The result is a congestion-proof plan that works great in complex urban conditions.

Tap into the power of AI to transform your last-mile supply chain operations. Book a Wise Systems demo today!

High Costs

The last-mile supply chain is complex and expensive. However, your business is likely wasting money on small inefficiencies that add up over time.

Stay on top of last-mile costs with Wise Systems. Our AI-powered analytics platform automatically identifies trends to help you make faster, more informed business decisions. Track driver performance, route efficiency, fuel use, and other important metrics to optimize costs like never before. Schedule a Wise Systems demo today to see it in action.

Overcome Last-Mile Challenges for Good

Check out our latest Feature Spotlight and learn how you can use our Route Planner app to build cost-effective routes and maximize fleet efficiency. Learn more here! https://t.co/PXR9se6pbl pic.twitter.com/GK8yEQzx2B

— Wise Systems (@goWiseSystems) March 29, 2023

The last-mile supply chain has always been challenging, but the right tech stack will help your business rise to the occasion. Shortening timelines, traffic, and increasing costs make last-mile delivery more difficult than ever before, but Wise Systems turns these challenges into opportunities. Request a demo now to execute better last-mile strategies.

Frequently Asked Questions

Can businesses use technology to improve the last-mile supply chain?

Absolutely. The right solutions, like Wise Systems, support real-time tracking, optimize routes in real-time, and automate the dispatching process. AI-driven analytics also make it possible to forecast demand and distribute last-mile resources more efficiently.

How can businesses reduce the environmental impact of delivery?

Eco-friendly last-mile practices are a must. Route optimization and fuel tracking cut costs, but they also reduce fuel use and emissions — it’s a true win-win for businesses and the environment. Upgrading to electric vehicles (EVs) also cuts down on emissions.

How does the last-mile supply chain work in rural areas?

Addresses are spread out in rural areas, making it more difficult for drivers to do high-volume deliveries in one route. Companies will often partner with local partners, like USPS, or independent couriers for these deliveries. Some offer centralized pickup locations, like Amazon Lockers, to reduce delivery demands.