Month: December 2022

The booming growth of e-commerce and DTC brands has created a new thriving industry, Last Mile Delivery. Last-mile delivery is the final step of many retail supply chains that gets the product from a distributor, warehouse, or retail store to the end customer.

With many product brands shifting focus to e-commerce sales, companies are quickly discovering that last-mile delivery is one of their highest costs. Because last-mile delivery focuses on shipping products straight to customers’ doorsteps, optimizing the process is challenging.

In a market where 70% of consumers shop online, faster delivery speeds and lower shipping costs are powerful competitive advantages. Fortunately, e-commerce and DTC brands can strengthen their last-mile delivery to grow their business and enhance the customer experience.

1. Leverage Automation Tools

E-commerce and DTC brands can use automation tools to streamline processes, reduce operational costs, and improve the user experience.

Automation is most commonly used for customer communications. For last-mile delivery, brands can automate processes to communicate shipment updates such as expected delivery times, arrival status, delays, and other information.

With automation tools, brands can provide world-class customer service while reducing manual labor and operational costs.

2. Optimize Route Planning

Brands can use AI-powered tools to optimize fuel routes for delivery speeds and fuel consumption. UPS famously revealed that their delivery trucks turn right 90% of the time to save time, lower fuel costs, and reduce vehicle accidents.

Route optimization software can analyze historical and real-time tracking data to create cost- and time-efficient delivery schedules. These routes can be updated in real-time to avoid traffic delays, account for new shipments, and adapt to other variables.

Route optimization software automates the communication process for drivers so they always have accurate route information. With these tools, brands can improve delivery times, reduce shipping costs, and avoid human error.

3. Monitor Delivery Performance

Even with the best automation and optimization strategies, delivery performance is in the hand of your drivers. Brands should utilize systems that track driver performance, such as on-time rates, service times, customer feedback, number of packages delivered, and total distance traveled.

By recording and analyzing this data, companies can uncover strengths of weaknesses in their last-mile delivery. Drivers with below-average performance may reveal issues with personnel, route optimization systems, vehicle performance, and other logistics problems.

4. Diversify Your Last-Mile Strategy

With the rise in popularity of e-commerce platforms and delivery services, brands now have access to multiple ways to engage consumers. The best way to capitalize on this trend is to ensure that consumers can purchase your products through numerous marketplaces and delivery services.

While Amazon accounts for 37.8% of retail e-commerce sales, many brands are looking to other retailers like Walmart, CVS, Home Depot, and Sprouts to diversify their last-mile delivery strategies and reach new customers.

Other organizations are pairing with food delivery companies like GrubHub, DoorDash, and Postmates to offer customers same-day delivery of their products.

Expanding your delivery offerings allows shoppers to access your products from a broader range of providers, reducing shipping costs for you and your customers.

With more than 76% of Americans shopping online, E-commerce is slowly becoming the predominant way people buy their favorite products.

While e-commerce supremacy is becoming more apparent each day, the challenges e-commerce operations face are also rising.

Rising inflation, the war in Ukraine, and ongoing pandemic-fueled difficulties continue to cause supply chain disruptions for companies worldwide. As we continue to deal with these new economic norms, there are a few strategies e-commerce brands can take to avoid supply chain disruptions.

1. Create Models & Contingency Plans

The actual supply chain issue isn’t the issues themselves but that our current system couldn’t handle the fluctuations caused by the pandemic. By creating models and contingency plans for various scenarios, companies can have an action plan ready for any disruption.

2. Monitor First-Party Retail Data

One of the best predictors of consumer demand is first-party retail data. Companies can identify early warning signs of supply chain volatility by keeping an eye on point-of-sale fluctuations in-store and online.

3. Create Data Partnerships with Suppliers

Many of the pandemic-fueled supply chain disruptions stemmed from a communication breakdown. If you’re viewing retail data that may signal a spike or decline in demand and that your suppliers aren’t aware of, they may not be able or willing to meet your new requirements. You should not only consider sharing data to help mitigate risks, but you may also find a partner to share the costs.

4. Invest in Real-Time Data

Minor delays can significantly impact today’s highly optimized supply chain. Fortunately, with machine learning, AI, and 5G innovations, companies can access real-time tracking data for shipments from cargo ships to last-mile delivery. If there’s an issue, the best way to save money is to get notified as quickly as possible.

5. Incorporate Cybersecurity Measures

Data breaches are becoming a more common issue for companies worldwide. By investing in cybersecurity technologies and conducting a cybersecurity audit, you can identify weak spots that may hamper your digital capabilities. Taking these measures can help prevent untimely disruptions and financial risks.

6. Keep Customers Informed

No business likes admitting a problem, but problems are unavoidable for any business. When issues do arise, it’s essential to manage customer expectations. Luckily, companies can automate the process of informing customers of delays when they occur, saving companies time and improving customer relations.

7. Utilize E-Commerce Marketplace Services

E-commerce brands are one of many in the fight against supply chain disruptions. When brands lose out on shipments, e-commerce marketplaces also lose commissions. Fortunately, many of these marketplaces offer brands tools and resources to help combat these issues. These tools include real-time tracking, alternative component suppliers, and customer outreach. While e-commerce platforms like Amazon notoriously take a large chunk of brand sales, they can be your best friend in a crisis.

While the holiday season is often the best time for e-commerce brands, slumps in consumer demand hamper brand expectations. To better prepare for a slower holiday season and a challenging start to the new year, e-commerce brands should consider investing in technologies and systems to help mitigate supply chain difficulties.

For more information call National Delivery Solutions