Last-Mile Delivery Software Buying Guide: The Most Important Factors to Evaluate When Purchasing Last-Mile Delivery Software

As the demand for fast, reliable deliveries continues to grow, especially in the e-commerce sector, Last-mile delivery software plays a crucial role. This software is designed to streamline the final and most complex leg of the delivery journey—bringing packages from distribution hubs to customers’ doorsteps.

For businesses aiming to enhance operational efficiency and meet rising customer expectations, investing in the right last-mile delivery solution is essential. In this article, we’ll explore what last-mile delivery software is, why it’s critical to your business, and the key features to look for when selecting the right solution.

In this article:

• What Is Last-Mile Delivery Software?
• Why Do You Need Last-Mile Delivery Software?
• Key Features & Considerations for Choosing Last-Mile Delivery Software
• Streamline Last-Mile Delivery with Wise Systems
• Frequently Asked Questions

What Is Last-Mile Delivery Software?

Last-mile delivery software is specifically designed to streamline the final leg of the delivery process, where goods are transported from a distribution center or fulfillment hub to the end consumer’s doorstep. This software integrates advanced technologies, such as route optimization algorithms and real-time tracking systems—essential tools for enhancing delivery accuracy and speed.

Last-mile delivery software plays a vital role in modern logistics by improving operational efficiency, providing transparency and effective communication to meet customer expectations, and ultimately contributing to a healthier bottom line. As e-commerce continues to grow, investing in effective last-mile solutions becomes increasingly important for businesses looking to maintain a competitive edge.

Discover how the Wise Systems delivery automation platform can streamline your last-mile delivery and boost your business’s efficiency. Request a demo today!

Why Do You Need Last-Mile Delivery Software?

Let’s review some of the ways last-mile delivery software can benefit your business.

1. Overcoming the last-mile problem.

“The last-mile problem is when a package’s real-time status online reads ‘out for delivery,’ but customers still have to wait for an extended period of time before they receive it. This occurs because there can be numerous stops and delays in the final stretch of shipping.

“In rural areas, delivery is slowed by long distances between stops, with only a couple of packages being delivered at each one. The situation isn’t much better in urban areas, as there are delays caused by traffic congestion.” – eMarketer

2. Increasing demand for fast, reliable deliveries.

“Given the rapid growth of e-commerce and increasingly higher customer expectations for fast, reliable deliveries, efficient last-mile delivery is more critical than ever before. According to Statista, global retail e-commerce sales amounted to $4.28 trillion in 2020 and are projected to grow further. This growth emphasizes the importance of last-mile delivery apps in ensuring timely and efficient delivery of goods.” – Zorp

3. Last-mile delivery is costly.

“As all the packages are delivered separately to different addresses scattered around the city, the cost of such delivery is much higher than when it’s done en masse. With customers also expecting free shipping, companies have to cover the costs from their pockets, which often makes it hard to keep their operations profitable.” – IntelliSoft via Medium

4. Streamlining delivery processes.

“Last mile delivery software provides features for businesses to manage and streamline deliveries from the warehouse to the customer’s front door. Last mile delivery software performs this task through route optimization, advanced dispatching, customer alerts, proof of delivery, and delivery analytics. With all these features in place, businesses can speed up delivery times as well as stay in constant communication with customers on the status of their deliveries.” – G2

5. Route planning is complex.

“Let’s say you have to deliver 20 packages in one city. You have to build the delivery routes in a way that allows you to minimize the distance traveled between the pickup and drop-off points while maximizing the number of deliveries. Building these routes is not a piece of cake, considering constant traffic changes, weather conditions, road closure, and other factors.” – IntelliSoft via Medium

6. Creating positive delivery experiences.

“A poor delivery experience reflects negatively on your business, even if you used a 3rd party logistics (3PL) company to ship your orders. Your customers aren’t likely to forgive damaged, late, or lost shipments. If they leave a bad review, you’ll gain a reputation that’s hard to shake.

“Slow last-mile delivery doesn’t just make you lose out on future profits; it can take earned money out of your pocket. Chargebacks will start pouring in, and they aren’t always fair.” – Fishbowl Inventory

7. Improved working conditions.

“Last mile delivery software can be used to enhance the working conditions for delivery drivers and other personnel as well. Optimized route planning helps save on time and fuel costs associated with deliveries which is beneficial for drivers that are paid based on the number of orders they complete in a given day or week. Additionally, driver communication features like automated SMS notifications or tracking updates help drivers stay informed throughout the process so they can offer better service to customers.” – Slashdot

8. Increasing demand for same-day and next-day deliveries.

“With the evolvement of the e-commerce giants that offering same-day or next-day delivery options, enterprises that need last-mile delivery software to efficiently manage and fulfill these time-sensitively delivering commitments. This is a crucial aspect of meeting the expectations of modern consumers who value speed and convenience.

“The rise of consumer expectations for same-day to next-day deliveries presents significant logistical challenges. Enterprises must optimize their supply chains and delivery networks for speed and efficiency, enabling quick order procedures and rapid transit times while maintaining quality and accuracy in deliveries.” – Nevina Infotech

9. Customers expect transparency.

“With the boom of online shopping, modern customers expect a delivery tracking number at the time of purchase, the ability to check shipment status at the click of a button and real-time notifications at every step of the shipping journey. Providing these services is nearly impossible without advanced last mile delivery software.” – OneRail

10. Greater delivery productivity and scalability.

“Last-mile delivery software finds available drivers that can deliver your product faster, which is especially helpful during holiday rushes or high-traffic times of the day (such as rush hour). It can also choose the most efficient route for drivers. By tapping into outside or third-party delivery services, you can serve a wider geographic area of clients and move your inventory faster.” – Nash

11. Improved delivery monitoring.

“An exceptional last-mile tracking platform allows you and your team to be more proactive with deliveries and helps your customers prepare for contingencies in case of unforeseen events.

“The software can analyze delivery patterns and historical data to predict how much time the transport will take and any issues that may arise due to traffic, road closures and rerouting schemes.

“This information can help you provide your customers with more accurate expected time of arrival or ETAs.” – Carryio

12. Improving resource utilization.

“Perhaps this is the main goal of any business owner, to achieve more with less investment and effort. If you are engaged with the delivery business, your core objective is to deliver the product to the customer on time. But how is it possible when you have too many deliveries on your table? How will you grow your business when you have a limited number of delivery providers and limited hours in a day?

“You need to find a way that offers you more with the limited resources you have. It means you have to perform tasks faster and deliver orders quicker while letting you earn consumers’ trust and maximize ROI. Scalable delivery management software can help you manage bulk orders, schedule deliveries, and help delivery providers to decide smart routes.

“You can also set reminders to free up staff members so that they can focus on other important business objectives. With complete delivery management software, you will be able to dispatch more deliveries in less time and let you expand your business without a hefty investment in a larger fleet.” – Techvera

Ready to optimize your last-mile delivery and increase profitability? Request a demo today to explore the Wise Systems delivery automation platform.

Key Features & Considerations for Choosing Last-Mile Delivery Software

Not sure what to look for when selecting last-mile delivery software? These buying considerations and features to look for will help you make the right choice.

1. Consider data collection.

“Access to data is essential for companies to make informed decisions. Your last-mile delivery software should generate important metrics such as service duration, on-time rates, success rates, and feedback points. By analyzing this data, you can gain useful management insights and make changes to your delivery process to obtain enhanced customer satisfaction.” – Mark Taylor via LinkedIn

2. Look for route planning and navigation tools.

“It’s fair to claim that it’s impossible to build and control routes for all deliveries with human capacities only. Luckily, there are enough technologies that help to create the most efficient route to the end-customer, given his or her location, time of the day, traffic situation, etc.

“Modern last mile delivery solutions give drivers an opportunity to promptly adapt to any on-road developments, whether it’s an unexpected roadblock or a change in the recipient’s address. Through the integration of last mile delivery technology, they can use a route that optimizes costs, time, and energy.” – Eastern Peak

3. Real-time updates are essential.

“With customers becoming more and more impatient every day, it is important to keep them updated about the delivery status at each step. A good delivery management software will provide real-time tracking and allow you to notify your customers about the delivery operations with more transparency. More accuracy and communication in real-time will ensure guaranteed satisfaction for the customers and encourage them to pick the same delivery partner in the future.” – Mark Taylor via LinkedIn

Discover how Customer Portal from Wise Systems can help you deliver the experience your customers expect. Book a demo today!

4. Look for a tool offering automated dispatching.

“It is easier to make deliveries when fleet assignments are automatically segregated and decided beforehand. Since the last mile process is highly agile, CIOs must ensure the software systems have built-in deep learning capabilities to make in-the-moment decisions.

“Auto-assignment and fleet scheduling are common features in last-mile delivery software apps. After aggregating a driver’s availability at a particular time and location, the auto-scheduler performs instant delegation of delivery tasks. The idea is to align the closest possible fleet for sooner pick & drop. In some business cases, the allocation is also determined by customer preferences.

“For example, Uber and Zomato use a deep learning algorithm that considers driver location and overall ratings while mapping them to particular orders/bookings. So customers with high rating areas with equally qualified drivers.” – CIO

5. Choose last-mile delivery software that offers route planning automation.

“Manual planning has many errors. They lead to delays, high fuel costs, and poor time management. Route planning automation and optimization enable the efficient handling of huge orders. You will do this within a few clicks. Routine algorithms help final mile software predefine cost-effective routes. It scrutinizes factors like:

• Weather conditions
• Traffic congestion
• Sudden road closures
• Delivery urgency
• Delivery numbers on the route” – Aalpha

6. Look for last-mile delivery software with machine-learning capabilities.

“Last mile delivery management software can streamline last mile processes through machine learning algorithms that learn from data and improve over time. Machine learning helps optimize last mile delivery by predicting variables like traffic patterns, congestion levels and customer preferences, then routing vehicles accordingly to minimize miles and fuel consumption and maximize efficiency.

“Machine learning can also monitor shipment tracking to identify potential delivery risks, alerting human counterparts to take action and manage exceptions as they arise. Integrating last mile delivery technology with an experienced logistics workforce delivers unparalleled last mile service and efficiency.” – OneRail

7. Select last-mile delivery software that offers data analytics.

“Self-analyzing your techniques and performances is an important part of every business. Analytics is an advanced feature that has created a huge change in the last-mile delivery system. This software is essential to measure the performance of the delivery system every month to make changes and improvements in the upcoming deliveries. It has allowed the last-mile delivery services to manage the company using automatic data management and analytics features.

“In this design, the software will have the ability to check the status of deliveries, measure the performance of the agents, resource utility management and create a detailed analysis report on successful to failed deliveries ratio. This is the most advanced and significant component in the last-mile delivery system and can improve the revenues.” – Customer Service Manager

8. Select a tool with digital channels for customer communication.

“LMD technology solutions provide a digitized experience to a shipper’s customer, allowing end consumers to route, book, track and communicate changes to their orders through a digital channel.” – Gartner

9. Choose software that integrates seamlessly with your other systems.

“Last mile delivery software should easily integrate with other supply chain systems and third-party platforms to streamline data sharing and increase process efficiency. Integrations should rely on API to push and pull data between relevant parties, ensuring that everyone in the delivery chain — from distribution to end customer — is empowered with accurate, real-time shipment information and updates.

“Integrations are critical for delivering real-time shipment visibility, but should also support pre-delivery and post-delivery functions.” – OneRail

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— Wise Systems (@goWiseSystems) April 26, 2023

10. Consider vehicle management tools.

“Last mile software keeps tabs on the performance of delivery vehicles and drones. It can also monitor vehicle usage and track metrics such as fuel efficiency, route adherence, and safety compliance.” – Techstack

11. Look for flexibility and ease of scheduling.

“The entirety of a shipper’s search for a last mile carrier team may be simply for an optimized experience scheduling deliveries. Although not all items are time-sensitive, shippers must know that any carrier hauling their products can operate on a deadline to ensure team members are available at the end retail location.

“However, when an item needs to go straight to the consumer, shippers and brokers must know their last mile delivery network can still accomplish a white glove delivery. With last mile costs compromising 53% of a freight’s total transportation cost according to Insider Intelligence, shippers must partner with a last mile delivery technology provider that provides one platform with many options for increased scheduling flexibility.” – GoShare

12. Look for tools offering mobile integration.

“Most third-party last-mile delivery software comes with in-built mobile phone integration. This means that you can access the software’s functionalities on the desktop as well as a mobile device. This factor is beneficial when it comes to remote logistics management.” – Auxano Global Services

13. Select last-mile delivery software that offers last-mile visibility.

“Last-mile delivery software gives you complete visibility over the entire process. Because of this, you can keep track of issues, prevent and resolve them within the shortest time possible.

“With this software, you can also view omnichannel and multi-country operations, allowing you to manage operations and deal with issues efficiently.

“Moreover, this last-mile delivery tracking capability can give you real-time visibility of all shipments and individual consignment history so that you and your team can efficiently handle all customer queries and concerns.” – Carriyo

14. Look for proof of delivery capabilities.

“It gives drivers peace of mind when a package is safely delivered to the end user. But with the help of a last mile solution, a business as a whole can get relief. The proof of delivery feature provides tangible evidence that your package has safely reached its destination. No matter whether it’s an OTP or a digital signature, it adds accountability to the process.” – Niharika Rathour via LinkedIn

15. Choose software that measures and monitors performance metrics.

“An integral aspect of the best final mile delivery software involves comprehensive performance tracking. These solutions analyze crucial metrics like delivery times, driver performance, route efficiency, and customer satisfaction. Leveraging these metrics helps businesses optimize their operations, identify bottlenecks, and make data-driven decisions for enhanced efficiency.” – Software Suggest

Make data-driven decisions with Performance Manager from Wise Systems. Request a demo today to discover how Wise Systems helps you track leading indicators, identify key trends, and make informed business decisions.

16. Look for AI-enabled automation.

“When combined with GPS, artificial intelligence (AI) helps adjust delivery routes based on real-time traffic data. 2024 research shows route optimization and real-time analytics are the most transformative last mile delivery technologies. Automated dispatch systems can also assign delivery tasks to drivers (based on proximity, prioritization, and other business rules) and streamline customer support.” – Techstack

17. Analyze potential costs.

“When selecting a last mile delivery system, be sure to consider additional fees such as implementation fees and licensing costs associated with the software, as well as costs related to maintenance and support. In addition, most software companies will offer packages which include add-on modules for additional features at an added cost. For example, features such as automated route planning algorithms might require an additional fee if they are not included in the initial purchase.

“Finally, it is important to factor in any potential savings that could be realized by implementing this kind of solution including savings due to improved vehicle utilization rates or reduced fuel expenses due to more efficient routes being planned out. The cost/benefit ratio should always be taken into account when considering purchasing last mile delivery software so you can ultimately achieve a positive return on investment over time.” – Slashdot

18. Consider payment options.

“Evaluate the payment options supported by the final mile delivery software. The software should facilitate flexible customer payment methods, accommodating various preferences such as cash on delivery, credit/debit cards, digital wallets, and online payment gateways. Providing diverse payment options enhances customer convenience and satisfaction, positively impacting the delivery experience.” – Software Suggest

19. Choose last-mile delivery software with effective communication tools.

“Interaction with customers is an integral part of last mile delivery — in case of any changes in delivery process, drivers and recipients should be informed.

Last mile delivery provides an opportunity to manage each way of communication with shoppers, including the following:

• Notifications — order confirmations, delivery times, updates, delay alerts or confirmations on successful delivery.
• Communication channels — enabling drivers to connect with customers like his phone number, email or any other information provided by a certain shopper.
• Self-service options — used for providing delivery instructions, changing delivery locations or rescheduling deliveries etc.
• Feedback — automated prompts for recipients to share their experience and satisfaction.” – Maja Dakić via Medium

20. Look for a last-mile solution with robust security measures.

“Whenever data is transmitted digitally, there is the possibility of interference or data breach due to malware or hacking. Last mile delivery software should offer enhanced security measures to ensure that valuable information about the organization and its customers is safe.

“Carriers and shippers should leverage built-for-privacy last mile delivery platforms that meet sophisticated security requirements, such as:

• Cloud-based infrastructure
• Full encryption capabilities
• SOC 2 compliance
• ISO 27001 and NIST SP 800-53 standards
• CIS, CISA, DISA and COBITTM standards

“Protecting private data from internal or external corruption also protects the company from lawsuits, financial loss, reputational harm, poor customer sentiment and brand erosion.” – OneRail

Streamline Last-Mile Delivery with Wise Systems

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— Wise Systems (@goWiseSystems) April 25, 2023

Looking for an end-to-end last-mile delivery solution? The Wise Systems delivery automation platform offers a solution for every stage of the delivery process, from routing and dispatching to customer communication and performance management. Request a demo today to learn how Wise Systems can streamline your last-mile delivery processes to boost efficiency, cut costs, and enhance customer satisfaction.

Frequently Asked Questions

What is last-mile delivery tracking?

Last-mile delivery tracking provides real-time updates on the status of deliveries during the final leg of the journey. Customers and businesses can monitor package locations, estimated delivery times, and receive notifications to ensure transparency and better customer satisfaction.

What is last-mile automation?

Last-mile automation involves using technology to streamline tasks in the delivery process, such as route optimization, automated dispatching, and real-time communication with drivers. It reduces manual work, improves efficiency, and speeds up delivery times.

What technology is used in last-mile delivery?

Technologies used in last-mile delivery include GPS tracking, route optimization software, mobile apps for drivers, cloud-based management platforms, and telematics. These tools help businesses monitor deliveries, communicate with drivers, and optimize operations.

How do I manage my last-mile delivery?

Managing last-mile delivery involves using specialized software to plan efficient routes, track deliveries in real-time, communicate with drivers, and resolve issues quickly. Regularly monitoring KPIs and leveraging automation also help optimize the process.