When getting goods and services to customers, final-mile delivery is often used synonymously with last-mile delivery, referring to the final segment of the delivery process and taking orders directly to the customer’s front door. In recent years, final-mile/last-mile delivery has expanded to refer not only to consumer or residential deliveries but also to business-to-business.
Challenges of Final Mile Delivery
Regardless of the recipient, final-mile/last-mile delivery is generally believed to be one of the most challenging and expensive segments of the delivery process. Studies have shown that final mile deliveries make up more than 50% of total shipping costs. Simply choreographing the deliveries for an entire fleet to ensure on-time delivery is enormously challenging — even before real-world challenges such as traffic and weather. In addition, customer expectations for rapid and predictable delivery are only increasing, driven by apps (ridesharing and meal-delivery) that provide detailed information and regular communication about the order status. Those experiences influence customer expectations in final-mile/last-mile delivery, as well.
How Fleets Can Lower Final Mile Delivery Costs
Improving final mile delivery operations can positively impact companies that utilize fleets. For savvy transportation operations, finding creative ways to differentiate their final-mile/last-mile delivery service is a business opportunity. The key is to use technology that enables them to offer distinguished final-mile/last-mile delivery Using AI-driven route planning software can help optimize each driver’s final mile deliveries. Wise Systems’ AI-driven software automatically considers different variables, including the location of each driver, traffic, weather, and more, to schedule and plan optimal routes.
Benefits of Improving Final Mile Delivery
There are many different benefits for improving final mile delivery; however, the three main benefits are lowered delivery operation costs, allowing for employees to focus on other areas of business, and improved customer satisfaction. Utilizing technology to plan and schedule routes for drivers daily will eliminate the need for managers to plan routes, allowing them to focus their time on other areas of business. Another big advantage of improving final mile deliveries is that your fleets will now offer more on-time and quick deliveries, ultimately improving customer satisfaction.
Contact Wise Systems
If your business is interested in decreasing fleet operational costs and improving business operations, please contact Wise Systems. To see our route optimization software in action, request a demo today. Learn more about how our software can benefit your business!