6 Ways to Reduce Your Last-Mile Delivery Costs
Updated: Sep 15
As technology advances, consumers are keener than ever before to get their deliveries from merchants in the shortest amount of time, and when this does not happen, it can cause a loss of sales, expensive returns, and reduced profits.
Not only do last-mile deliveries present a logistical challenge, but according to a study, they use around 41% of the logistics budget to achieve, making them by far the most expensive part of the process. In addition, last-mile operation tends to be the least efficient part of the process, with delivery efficiency causing around a quarter of all concerns for companies.
How to Reduce Your Last-Mile Delivery Costs?
It is no surprise that there is an increased demand for a solution to reduce the cost of the last-mile delivery operation. Take a look at the following six ways it works before you get started:
1. Automated Dispatching Solution
Choosing to automate your logistics operations means that you can choose to use an automated dispatching solution. This type of system works to link the right driver to the delivery when they are in the optimal place at the right time, thus reducing the initial wait to hand off the delivery to the last mile operative.
2. Delivery Route Optimization
Using an automated delivery route planner not only provides better-organised delivery solutions, but when you use route optimization software like Norma Go, you can be certain that a driver’s deliveries will be planned in such a way that the minimum time is needed.
Automated route planning not only optimises based on location but also considers the time needs, the capacity of your driver, the distance you need them to cover and the traffic levels. Plus, you can use real-time updates to alert drivers of changes to their delivery route to ensure timeliness is always maintained.
Route optimization software not only offers a way to make deliveries more efficient, but it also helps to reduce costs, streamline processes, and speed up deliveries.
3. Verify Your Deliveries
Delivery management software like Altair DC offers more than just speedier deliveries; it also provides a way to verify your deliveries and obtain proof of delivery and location of delivery in case of later disputes. Verification can be with GPS, timestamps, and the name of the receiver.
When you use a mobile application to support deliveries, you can also get electronic signatures, scan parcel barcodes, and even take photographs of deliveries. This information is invaluable and will help to reduce the costs of false non-delivery claims.
4. Real-Time Updates
One of the biggest issues that consumers face is knowing when they need to be in to take delivery. This can be avoided when you automate your last delivery operations as the software can provide them with real-time delivery updates and parcel tracking so that they can be aware of the journey their parcel is taking and when to expect it to arrive. With advanced chatbots, delivery appointments can be booked automatically and linked to the routing software.
5. Increase Delivery Options
Not everyone wants their delivery as fast as possible! Most consumers would prefer to choose a time and date that works around their schedule. The best route optimization software will provide as many delivery options as possible so that you can reduce the number of attempted deliveries and increase consumer satisfaction.
6. Real-Time Data Analytics
When you choose automated route planning, you can look forward to receiving advanced analytics and machine learning that will help you to improve your business offering and improve your service to consumers. You can discover key data about productivity, deliveries made, and even the time a driver is idle – allowing you better control over your last-mile deliveries than ever before.
How can Norma Go help last-mile delivery businesses achieve more?
It's clear that choosing automated route planning will help you to improve your last-mile delivery times but choosing the right system is key to your success. Norma Go works to pull together a range of information from the warehouse location, fleet capacity and product specifications so that the right routes can be planned and arranged.
Norma Go also uses key business and traffic rules as well as traffic predictions and vehicle restrictions so that every journey is fully optimized each time. Put simply, Norma Go can produce the best plans and routes with one click of a button.
Below are some facts of what Logistics companies can achieve with Norma Go:
Reduces the number of used vehicles by up to 35%
Reduces the number of miles driven by up to 22%
Reduces the actual driving time by up to 18%
Download our case study to learn how Mylerz is achieving a 96% delivery success rate with AI.
For more information on how Norma Go can provide similar results to your logistics operations, feel free to request a one-to-one live demo, and one of our experts will be happy to call you back to discuss your requirements in detail.
Choose Norma Go today and improve your last-mile deliveries for all your customers!