“The customer is always right” is one of the most common sayings, but it holds if you want to run a successful final mile shipping operation. Put yourself in your customer’s shoes: When they finally find the perfect item and tap Buy Now and eagerly anticipate its arrival, the excitement builds. As a retailer or distributor, this is your chance to make a lasting impression. Will your customer be delighted when the package arrives right on time, or frustrated by delays and mix-ups? With 62% of shoppers stating that delivery speed is a crucial factor in their purchasing decisions, this is your time to shine.
Whatever role you play in the supply chain, all eyes are on final mile shipping. It’s your brand’s final audition on the customer experience stage. And even though this stage represents over half your shipping costs, any mishap here can be costly beyond simple dollars and put your reputation on the line. One delayed delivery can push 14% of your customers to the competition. And with the e-commerce market expected to hit $8.1 trillion by 2026, the pressure is on to perfect this final touch. So, consider adopting several of the following final mile shipping best practices to take your efficiency and customer satisfaction up a notch.
Use Technology for Efficient Final Mile Shipping
No one likes to wait — especially not for packages. As e-commerce grows, so does the demand for quicker, more transparent deliveries. That’s why integrating advanced technology to streamline your shipping operations can be your X factor in keeping up with consumer expectations and competitive pressures.
Implement Real-Time Tracking Systems
Waiting for a package can sometimes feel like watching paint dry, especially when unsure when it will arrive. Perhaps that’s why, according to OneRail’s recent report, “Carrier Diversification Tops 2024 Shipping Fulfillment Goals,” 82% of customers demand proactive order updates. But when you implement real-time tracking systems, it’s almost like you’re killing two birds with one stone: satisfying their urge for transparency and real-time updates.
The evolution of final mile delivery has been rapid and customer-driven. Simply dropping packages off at the doorstep no longer cuts it. Customers expect you to offer real-time tracking and transparent deliveries to reassure them, reduce anxiety and make them happy. If you thought being in logistics meant being a run-of-the-mill service provider, think again. Your role now requires you to provide an experience where each step in the delivery process, from the first to the final mile to even the post-purchase stage, serves the purpose of cultivating a relationship with your customers and making them more likely to return.
Automate Your Last Mile Logistics
Switching to automation tools for scheduling and route optimization in final mile shipping is like upgrading to a high-performance vehicle. Suddenly, everything runs smoother and faster. These tools help reduce human error and enhance the efficiency of every delivery. Think of it this way: Algorithms that map out the quickest routes cut down on delivery times, slash fuel costs and reduce wear and tear on vehicles. That means lower operational costs and less time spent manually planning routes often riddled with errors and inefficiencies. Plus, shorter routes mean fewer emissions, contributing to your green credentials.
From the wholesale perspective, automation is also changing the game. The conversation here has to start with automation, not only drastically cutting down on human errors in the warehouse, but also making them almost non-existent — imagine reducing mistakes by up to 99%! Such benefits improve the quality of order fulfillment and enhance overall productivity. At the same time, automated systems can speed up processes, from inventory management to order processing, which can increase warehouse storage capacity by up to 50% and cut shipping times by half. For wholesalers, this translates to lower labor costs, minimized safety risks and ultimately, happier customers who receive their orders faster and with fewer issues.
Make Your Final Mile Shipping Greener and Smarter
Getting your products from the warehouse to the doorstep is a big part of your business. However, it’s also a chance to show your commitment to a greener planet, customer service and inventory-level visibility.
Embrace Green Final Mile Shipping
Picture your delivery trucks as more than vehicles; see them as key players in your commitment to sustainability. By integrating electric vehicles (EVs) into your final mile shipping fleet, you reduce emissions to zero and showcase your dedication to environmental responsibility. This approach resonates deeply with customers, primarily when you also strategically use local fulfillment centers to cut down on travel distances and emissions by up to 26%.
Efficient route planning further complements the use of EVs by making sure these vehicles operate at peak efficiency and travel fewer unnecessary miles — something that can help your bottom line and cater to your consumers. The numbers don’t lie: When retailers address consumer sustainability concerns, there’s a 77% increase in consumer loyalty and a 63% increase in total revenue.
Prioritize SKU-Level Visibility in Final Mile Shipping
Think of the peace of mind you get when you can track a pizza order right to your doorstep. Now, apply that to every product in your inventory with SKU-level visibility, particularly during the critical final mile shipping phase. This powerful tool allows retailers, wholesale distributors and e-commerce businesses to monitor every item closely, every step of the way. You know where your products are at all times and have the necessary insights to master your delivery process, reduce losses and handle any issues with speed and precision to keep your customers happy.
It’s high time to start prioritizing this. OneRail’s recent study, “Shrinking Shrinkage: Solutions for Improving Inventory Visibility,” revealed that 67% of companies face issues with items missing in transit or shrinkage. However, with advanced visibility platforms, you gain 100% visibility to track inventory, proactively manage your deliveries and offer dynamic ETAs to your customers and operations teams, which means fewer surprises and more satisfaction. You’re steps ahead when a problem arises, such as a potential delay due to weather or traffic. Plus, should there be a need to recall any product, you know precisely where to find it, making what could be a logistical nightmare into a manageable task.
Improve Customer Experience Through Personalized Delivery
Today’s shoppers expect their purchases to arrive quickly and at a time that suits them. Speed and accuracy are always important, but flexibility and optionality — offering delivery options from Same-Day service to perfectly timed drop-offs — are arguably just as much so nowadays.
Make Flexibility and Optionality a Cornerstone of Your Operations
59% of shoppers are more likely to make a purchase if they have multiple delivery options. Think about it: There’s a significant chunk of potential sales hinging on whether you can offer Same-Day delivery for spur-of-the-moment purchases, or set delivery times that fit seamlessly into your customers’ busy schedules. Retail leaders are catching on fast, with 69% recognizing the risks of sticking with just one delivery partner, and 65% planning to speed up their delivery times in the next few years. It’s all about offering optionality to keep your business in the fast lane and show your customers that you’re serious about meeting their needs.
Adding a personal touch through direct communication with delivery drivers can also transform customer perceptions. Imagine a customer’s relief when they can chat directly with the person delivering their order, get updates and know that their package will hit their doorstep right when they expect it and according to their schedule.
Be Accurate and Fast
Word to the wise — make your final mile shipping as fast and accurate as possible. It’s easier said than done, and there’s often a mismatch in logistics that can make this challenging. Consider that 73% of businesses report struggling with demand spikes when relying solely on in-house fleets. This bottleneck shows just how critical a swift and precise delivery system is to customer satisfaction, especially since 96% of consumers view delivery speed and reliability as key factors in their purchasing decisions.
By diversifying your delivery options and including multiple carriers, you effectively spread the risk and enhance reliability. It’s a strategy that addresses the common complaints head-on — after all, 20% of customer complaints are about slow delivery times. Speed and accuracy are a natural byproduct when you do last mile delivery right. Your customers will notice, too.
Actionable Strategies to Optimize Final Mile Shipping
By now, you know that final mile shipping can make or break your customer’s shopping experience. So here’s how you can tighten up this stage with straightforward, actionable steps:
- Optimize Routes Dynamically: Upgrade to routing software that responds in real-time. If there’s a traffic jam or a roadblock, your drivers can immediately reroute. This flexibility means your customers get their packages without unnecessary delays, keeping frustration at bay.
- Use Data to Predict Delivery Windows: Dig into your delivery data to predict more accurate delivery times. Analyze everything from traffic patterns to weather conditions. This approach allows you to give customers reliable delivery windows, reducing the guesswork and boosting their satisfaction.
- Partner Up Locally and Tap into Crowdsourced Power: Consider bolstering your delivery ecosystem by partnering with local delivery networks who know the lay of the land. Think of also using a crowdsourced platform to connect with a huge network of couriers nationwide. Such a combo can get your deliveries speeding to your customers in no time!
- Implement Automation Tools: Integrate automation with your logistics operations, such as automated sorting systems or robotic assistance in warehouses. These tools streamline the sorting and packing processes, ensuring that packages are on the move faster and more efficiently.
- Empower Your Customer Service Team: Make sure your customer service team has all the latest delivery information at their fingertips. Train them to handle delivery questions and issues quickly. When customers call in, your team will be ready to turn potential problems into positive interactions.
Supercharge Your Delivery Game with OneRail
If you want to boost customer happiness and improve your final mile shipping, follow the best practices we covered. The underlying theme here is to put the customer first. Whether it’s real-time tracking to hit right where customers care most, offering transparency to build trust and keep customers coming back, automating tasks and more, things get faster, more accurate, efficient and reliable.
It’s here where OneRail comes in to transform your logistics from simply sending packages to delivering excellence. Our network includes over 12 million vetted drivers and the OmniPoint® Platform, which smartly manages shipments to keep things moving quickly and affordably. And if anything unexpected pops up, OneRail’s Exceptions Assist™ team is on it 24/7, so your deliveries stay on track.
Ready to step up your shipping game? Check out what OneRail can do for your business. Schedule a demo today and move toward a smarter, customer-focused delivery system.
