2018-08-08 01:12:24Growing a Business: SalesEnglishLast mile delivery is a crucial part of the logistics. Here's everything you need to know about this vital lever for the growing Indian...https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2018/08/forklift-loads-goods-for-last-mile-delivery.jpghttps://quickbooks.intuit.com/in/resources/growing-a-business-sales/small-business-term-last-mile-delivery/Small Business Term: Last Mile Delivery

Small Business Term: Last Mile Delivery

1 min read

What Is Last Mile Delivery?

 

Last mile delivery is a crucial part of the logistics cycle. It refers to the final movement of products from distribution centers to customers’ doorsteps. This is a key position in the expanding Indian e-commerce sector that aims to enhance business revenues. It also satisfies young customers who increasingly prefer online shopping. As of 2018, over 50% of the e-retail deliveries in the country are for tier 1 and 2 cities, towns, and even rural areas. This poses a great challenge to the e-commerce sector in the following areas:

Making on-time deliveries
Managing the workforce to cover far-reaching areas
Coordinating with the workforce in real time
Processing customer returns quickly to ensure satisfaction

Types of Last Mile Delivery

 

For timely delivery of goods ordered by customers, regardless of their location, e-retailers can choose to:

Self-manage last mile delivery by using their own fleet of delivery vehicles and personnel
Outsource last mile delivery by utilizing the services of a third-party logistics provider

Self-managed last mile delivery ensures quality of service, helps increase revenues, and enables retailers to personally reach out to customers. Because Indian e-retailers must make a significant share of their deliveries to places outside the metro areas, managing shipments and a delivery workforce can be tedious. It is also cost-intensive and can reduce focus on business expansion.

Outsourcing last mile delivery provides e-retailers with the benefits of a dedicated logistics service provider that handles all aspects of package delivery. It also offers multiple delivery options, has quick and inexpensive shipments, and results in enhanced customer satisfaction. Outsourced last mile delivery allows companies to focus more on acquiring and retaining customers for increased productivity. However, retailers can risk foregoing control of their customer experience, which may affect their brand position in the market.

To ensure quality last mile delivery, e-retailers can use the QB inventory management app. This app provides a quick overview of items on order to enable on-time shipment. They can also use CRM app integration to collect and organize actionable customer data and enhance satisfaction.

Last mile delivery is a vital lever for the growing Indian e-commerce sector which looks to maximize customer satisfaction. E-retailers can choose to self-manage or outsource last mile delivery depending on their business strategy.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Featuring Gray Routes

Founded by Soubhagya Sahoo and Sapna Patel, Gray Routes is one of…

Read more

Small Business Term: What is Cash Flow Statement?

Just have a look at Bharti Airtel Ltd.’s 2016-2017 Annual Report. If…

Read more

What Are The Components Of A Business Plan?

Would  be entrepreneurs are in a constant dilemma whether to write a…

Read more