Let Customers Choose Their Delivery Window
Give customers greater control over when their products will be delivered by letting them select a delivery window. Not only is it more convenient for the shopper, but it can help lower costs since the process of looking for parking, the possibility of getting ticketed for double-parking, and vehicle idling are key drivers for inefficiencies and congestion.
Small Parcel Delivery (SPD)
To provide customers with an option for expedited delivery, consider partnering with on-demand delivery fleets or same-day messenger services. Many of them will soon offer “moonshot” initiatives such as delivery by drones and robots. These expedited services could drive stronger customer loyalty with lower prices, especially in megacities where the infrastructure exists to accommodate them.
Large-Item Logistics / Less-Than-Truckload (LTL)
Thought of buying a mattress, sofa, appliance, treadmill or a kayak? You’re not the only one. In the age of Amazon, consumers expect online purchases to be delivered fast and free. But when it comes to oversized items, it’s not so easy – not even for Amazon.
A recent study found that 11% of customers reported wasting an entire day tracking down shipment of an oversized product; another 11% of customers said they fought with customer service while the delivery process unfolded; 15% said they missed work while waiting for a delivery; and 13% reported keeping an item because of an overly complicated return process.
When it comes to large or bulky items, your business will need to consider either:
1. Building a warehouse to house all inventory– from small parcels to large bulky items;
2. Working with suppliers to help with point-to-point delivery;
3. Creating a distribution network or leveraging 3PLs to help with less-than-truckload (LTL) deliveries; or
4. All of the above.
Wayfair stays ahead of the curve because the company utilizes (and leads in) all three arrangements. “Wayfair is able to more economically handle what's called the LTL market, which gets the products to that last mile,” as reported in The Motley Fool.
For SMBs to compete in large-item logistics, consider providing customers with proactive updates on their shipment rather than having to research it themselves. Also consider providing customers with more delivery choices in the checkout page, similar to selecting a carrier (USPS, FedEx, DHL or UPS).
In competitive markets, where the likes of Amazon, UPS, FedEx struggle to provide, partner with transport marketplaces or shipping companies for white-glove service. The service fee is fixed, delivery costs are lower and predictable, and transit times are shorter.
Related blog: 5 ways tech makes an impact on logistics and on-demand delivery
Next Steps in Enhancing Last Mile Logistics
Considering all of these options, you might want to hire a dedicated employee to own the last mile routing process, from defining a vision and creating strategies to executing and delivering the solutions.
But don’t forget about technology like TradeGecko’s, which allows SMBs to sort through numerous but often simple data such as transactions, delivery records and customer information.
Your mission, should you choose to accept it, is to generate insight into product demand, how demand is structure, how your customers behave and how you can adapt your last mile delivery and logistics to better serve customer needs.
This is possible through TradeGecko’s wide range of integrations with EDI, shipping, 3PL partners and many more.