How Will Last Mile Delivery Software Help Modern Firms in 2023?

Updated 26 Sep 2023
Published 22 Feb 2022
Nancy Bhargava 2195 Views

The Coronavirus outbreak has provided a significant boost to eCommerce. In 2020, eCommerce and digital sales in the United States were boosted by 32.4%, more than twice in one year from 2019. The digital economy will continue to grow even if COVID-19 is restricted, according to the majority of experts.

However, the existing state of logistics does not meet the rising demand for rapid and easy delivery services, particularly in the final step of delivery – the last mile delivery software. Therefore, businesses that perceive delivery as a key channel are increasingly looking for methods to improve efficiency, reduce costs, and boost profitability in the last mile.

This aim is nearly impossible to accomplish manually without the use of appropriate technological solutions, one of which is the last mile delivery software.

What does the term “Last Mile Delivery” mean?

The last mile delivery service is responsible for transporting orders from a warehouse, store, restaurant, or another distribution hub to their final destination, which is typically a customer’s doorstep.

This includes a variety of modes of transportation, including walking, biking, vans, and, in the future, self-driving cars. But regardless of the model, the final leg of a product’s trip is still the most expensive, difficult, and crucial step in the retail supply chain.

Last Mile Delivery Software

According to various estimates, the last mile of shipment accounts for 28% to 53% of the entire shipping cost. The high price is due to the efficiency issue — specifically, the requirement to make several stops with small drop sizes. Moreover, delivery is hampered by lengthy distances between locations in rural areas or by high traffic in urban areas.

In addition to the high costs and complexity, the last stage also comes with increased punctuality requirements. Amazon is leading the market when it comes to fast, same-day delivery, and they’ve set the bar high for the rest of the pack.

Recent research suggests that 56% of American buyers will not return to the business if they are dissatisfied with the delivery service.

Why is effective Last Mile Delivery Management so important?

There are two basic reasons for this:

Price

Although the last mile is the smallest component of the supply chain, it is the most expensive element of the complete supply chain procedure. More than half (53%) of the whole freight cost is incurred in the last mile, illustrating the criticality of this step.

The high cost is due to the frequent pauses and small drop sizes required. Long distances in rural areas and congested traffic in large cities hold down delivery even further.

Customers’ Expectations

The last mile delivery is critical to the complete manufacturing and distribution of your products. First and middle-mile deliveries are “backend” services that do not engage directly with clients. When it comes to your brand success, the most important factor is your last-mile delivery network.

Consumers will have to go to a shop or distribution facility to pick up a package if the last mile delivery is removed from your logistics chain. As a result, they’ll have to spend a considerable amount of time transporting it there. Would it be beneficial to your company? Probably not.

Customers’ expectations for delivery times are increasing at this point. In a survey, roughly 55% of people said they would no longer purchase at a store if they had two or three deliveries that were late or missing.

Customers are prepared to pay a premium for same-day delivery, with 80% saying they’d do so. Consequently, the importance of fast service in achieving customer expectations has grown.

Last Mile Delivery Software

How Can Software Solutions Help Manage Last Mile Delivery?

When it comes to managing, tracking, and scheduling last-mile delivery operations for businesses, there is a category of software products called “last mile software.” This system covers the full last mile logistics chain, from warehouse operations to customer payment. Some of the ways by which these software solutions help businesses manage last mile delivery are:

Last Mile Delivery Software

Automated Route Design

Delays, higher fuel costs, and poor time management are all symptoms of poor manual route planning. A few mouse clicks allow you to organize hundreds of orders in extremely efficient delivery routes thanks to automated route planning and optimization.

Predefined routes for the last mile are determined using routing algorithms that take into account factors such as road congestion and weather conditions as well as road closures and the amount of deliveries on a particular route.

Tracking your order

Consumers today have short attention spans. Consequently, they’re unhappy with the status quo. Using last mile delivery software will allow you to provide fast and transparent services. Customers will be able to follow their deliveries in real-time on their cellphones thanks to the real-time tracking function.

Tracking links will be provided to customers through text messages or email when their items are ready for delivery. Real-time order visibility and accurate delivery ETAs will help customers have a better experience.

Enhanced Productivity in Shipping

When you’re a small business, it’s pretty simple to keep track of individual drivers. However, when your company grows, the situation becomes more complex. In order to maximize efficiency, the last mile delivery platform ensures that drivers follow their assigned routes at all times.

Aside from preventing inconvenient delays, it also provides notifications in the event of last-minute modifications or cancellations. With auto-dispatching, couriers may be assigned to orders in real-time based on planned routes, GPS positions of drivers, and client addresses analyzed in real-time.

All of these factors contribute to a quicker turnaround time for deliveries and lower overhead costs.

Decision-making Based on Data

An enormous quantity of data must be collected and analyzed to guarantee that you’re on the right track. It is possible to make smart judgments based on data thanks to the use of ML algorithms and business intelligence.

It’s possible to review important operational indicators such as distance traveled, on-time arrivals, and deliveries made as well as customer feedback ratings through the use of an analytics dashboard, which can be utilized to identify the last mile delivery operations’ weak points and potential growth areas.

Read Also: – Meal Kit Delivery App like Blue Apron Development Cost

Who Can Provide Last Mile Delivery Software?

We’ve outlined three different methods to last mile delivery software development below:

Pre-Configured Solution

If you’re on a tight budget and need the software to be integrated into your company operations as fast as possible, a template solution is a great option. Some of an organization’s transportation requirements cannot be met by SaaS software solutions.

That is why it is preferable to contact a reputable last mile delivery software firm that can assist you in developing a safe and scalable logistics system that meets your business’s demands.

Software Development Company

Personalized Solutions

Your company’s unique goals and difficulties may be addressed effectively by using specialized last mile software. As new tools become available, you have complete control over the final appearance of your project.

Even though some ready-made solutions allow for some degree of modification, you may not be able to use them with your current system.

Here are a few reasons why it’s a good idea to make your own software:

  • Address All The Requirements – It’s possible to create a customized solution that is completely tailored to the needs of your organization, including your company’s business logic, procedures, and units.
  • Easy Integration – You may not be able to use a ready-made solution if you don’t have the ability to integrate it into your current system.
  • Enhanced Security – In order to keep customers happy, many IT organizations place a high priority on software security and data protection. Security technologies such as two-factor verification, blockchain, and ciphered data can be implemented by software developers to ensure high levels of protection and decrease security concerns. Relatively, few software companies put an emphasis on creating solutions with high levels of security.

Outsourcing of Last-mile Delivery

To increase customer loyalty and brand recognition, many companies choose to handle their last-mile logistics on their own. However, if you’re a small business, maintaining a delivery crew or hiring full-time workers may be pointless because sales volume per day is not adequate to pay costs.

The last mile can be outsourced and delivered via a variety of channels in this scenario. There are a number of ways e-commerce enterprises outsource the delivery of their products:

1. Package Delivery Services

Local logistics companies may handle all of your deliveries on your behalf. Likewise, you may use the courier’s web platform to arrange, analyze, and validate order fulfillment. Automated order submissions through API are an option for retailers that prefer a more hands-off approach.

Delivery Manage Software Development

2. Dropshipping

According to this model, customers place an order with an online store and have it shipped to them by a manufacturer, distributor, or another third-party service provider. These platforms allow merchants to import items from major marketplaces, route orders, and oversee delivery to end customers conducted by product suppliers.

3. Crowd-sourced Delivery

Local, non-professional couriers work together to deliver packages via crowdsourced delivery. Grocery stores and restaurants alike have taken to using crowdsourcing for their product development.

Customers may place orders online and have them processed and shipped out in a timely manner thanks to this strategy. Because of this, transportation and other logistics-related costs were also reduced.

4. Delivery partners of 3PLs

Storage, transportation, and last-mile delivery services provided by 3PLs may be scaled and adapted to meet your specific needs.

Third-party logistics providers (3PLs) often use technology to improve efficiency and give visibility into their operations. When collaborating with a third party, you must verify that the technologies they employ can be readily linked with your retail software in order to get the most out of it.

Changing Last Mile Delivery Services with New Technologies

From 2020 to 2021, demand for rapid and autonomous last mile services climbed by 50%, and it will continue to expand.

As per research, the worldwide market for last mile delivery services is expected to reach $200.42 billion in 2027. The failure to meet customer expectations has been a major driver in the development of last mile logistics solutions.

Last Mile Logistics Solutions

Contemporary last mile technology reinvents delivery as a convenient and dynamic experience that adapts to changing consumer demands. The following are some of the technologies that are expected to have a significant impact on the delivery environment in the next years:

EVs

Electric vehicles (EVs) offer a huge step forward in the transformation of final-mile delivery since cities are increasingly enforcing rules on automobile emissions.

When it comes to last-mile transportation, electric vehicles provide an affordable and environmentally beneficial alternative that may soon be mandated by government agencies. The problem is that in smaller towns, there aren’t enough charging stations to go around.

Non-contact Delivery

The new normal is for people to have very little physical touch with one another. Nearly six out of ten clients choose contactless delivery as a result of modern-day worries about safety.

You must thus focus on developing safe and efficient distribution methods while limiting physical touch if your goal is mastering the urban final mile.

Drones and Robotic Delivery

Drones delivery service is just around the corner. The delivery industry is testing a variety of autonomous delivery vehicles and drones, including self-driving cars and robots. Even during busy seasons like Christmas, it might be difficult for companies to handle all of the deliveries on their own.

Drone Delivery System

AI-powered Smart Tracking

Logistics procedures are being streamlined as a result of this new trend. Using features like route optimization and real-time monitoring, organizations are able to better oversee their delivery operations while successfully managing their fleet. It is also possible to employ location intelligence to examine weather conditions and figure out the best routes for delivering goods.

Smart Locker for Parcels

Smart lockers follow the same pattern as old mailboxes in terms of logic. Deliveries are left here for the convenience of the recipient, who is free to pick them up whenever they like. Automated package selection, reporting, and delivery are possible because of the system’s integration with machines and sensor networks.

Last Mile Delivery Solutions

An IoT-enabled smart locker may broadcast alerts and access commands to recipients through cloud based applications and surveillance cameras.

How Do You Integrate Last Mile Delivery Software Into Your Business?

We’ve devised a step-by-step strategy for a successful software rollout:

Collect the Essential Information

Data regarding your current supply chain processes is critical to the successful use of automation technologies. In order to successfully integrate last mile logistics software, you must first build a process for obtaining data and assess your present setup. An expert IT provider can help you properly integrate the software into your current business systems.

Make a Development Decision

As we’ve previously stated, it’s best to go bespoke in order to save money over time. However, starting from scratch to develop last mile delivery software can be resource and time intensive. It’s important to recruit a team of experts in logistics software development. An in-house team or a trusted outsourced provider might be used to meet your needs.

Having an in-house staff might be handy, but it is also expensive. It comes with extra costs, such as office space, equipment, software, labor, and so on. However, if you want to be completely involved in product creation and have a high degree of control, this is a wonderful alternative.

Contracting software outsourcing companies to a renowned outsourcing location like India is the most cost-effective method. Due to cheap costs, a large pool of available talent, little taxes, and government backing for IT, this location is becoming increasingly sought after.

Development Process 

So now, let’s discuss the last mile software development process step-by-step. This insight will offer you a clearer picture of how a concept may become a real product.

software development process

  • Exploration – A project specification is drawn out by business analysts that outline every feature and technology component of the project. Using wireframes, designers plan out each screen of an application.
  • UI/UX design – After the wireframes have been accepted, UI/UX designers begin working on the app’s prototype.
  • Development Process – The suitable tech stack is used by software engineers to turn mockups into functional products.
  • Quality Control – To verify that the product is bug-free and performs as planned, QA engineers test it thoroughly.
  • Release – The product is delivered to the client together with all of the project documents by the developers.

Maintenance and Support

Last-mile delivery software creation may need ongoing maintenance. Version upgrades, new functionality additions, code optimizations, and so on are all examples of this type of work.

Last mile delivery: What’s the future of it?

Although it’s difficult, last mile delivery is still a key growth driver for both logistics companies and eCommerce companies. In light of these facts, organizations should keep up-to-date on the latest developments in last-mile delivery and software.

Tracking Sensors

Sensors are expected to play a major role in logistics businesses’ ability to monitor the temperature of delicate commodities including pharmaceuticals, frozen food, and spirits in the future. It will be possible to monitor humidity levels with sensors.

Robots, Drones, and Self-driving Automobiles

There is a perception that robots, drone delivery, and self-driving automobiles are things of the future. Large corporations, on the other hand, are working on and testing drones and driverless cars that have the potential to transform last-mile delivery.

drone delivery software development

Urban Storage

One of the fastest-growing fads in last mile delivery is to have warehouses in the city. Having urban warehouses, on the other hand, speeds up last-mile delivery and reduces carbon emissions.

Conclusion 

The logistics and transportation industries are likely to undergo major changes in the next years, but last mile delivery would still be a critical part of logistics.

In order to stay in business, companies must increase the quality of their Last Mile Delivery Software. Fortunately, dependable software for last mile delivery may assist any business in increasing profitability and getting a leg up on the competition.

FAQs on Last-Mile Delivery Software

  • What is last-mile delivery software?

    Last-mile delivery platforms and software enable organizations to meet the rising demands of their end customers while also improving their operational efficiency across the supply channel.

  • When is it appropriate to employ last-mile delivery services?

    When commodities are transported from a distribution center or warehouse to their final destination, they are referred to as last mile deliveries. In most circumstances, the customer’s doorstep is the final destination. It is the goal of last-mile delivery to get products to customers as rapidly as feasible while also keeping expenses to a minimum for the business.

  • How much does the last mile delivery cost?

    The cost of last-mile delivery is around $10.00 per shipment on average. In order to balance these expenses, firms charge customers an average of $8.00 per item, deducting the remainder from the sales price.

  • What can I do to make my last mile delivery more efficient?

    This may be accomplished by centralizing all logistical data, automating route planning, enhancing driver communication, and automating status updates by building an efficient last-mile delivery software.

Nancy Bhargava

Nancy works as an IT consulting professional with Arka Softwares. She has an in-depth knowledge of trending tech and consumer affairs. She loves to put her observations and insights of the industry to reveal interesting stories prompting the latest domain practice and trends.

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