The online shopping experience today is run by personalisation, speed, and cost-effective shipping. According to Forrester, 82% of eCommerce leaders report that offering faster delivery speeds boosts shopping conversions. Another research found that 97% of customers will abandon their carts due to high shipping costs.
But what does this have to do with first and last mile deliveries?
To stay competitive in the market, the pressure on eCommerce businesses to streamline their logistics processes has never been greater.
In this blog post, we'll explore why optimising first and last mile deliveries is essential in meeting the evolving demands of modern consumers and how it can drive success for eCommerce businesses.
Understanding eCommerce logistics better: What is First Mile and Last Mile Delivery?
As an eCommerce business, logistics play a key role in delivering your brand experience to your customers. First-mile delivery lays the groundwork for efficient order handling, while last mile delivery will be crucial for meeting customer expectations and securing satisfaction.
So what is first and last mile delivery?
First mile delivery refers to the initial stage of the shipping process, where goods are moved from the supplier or manufacturer to the warehouse or fulfillment center. This stage is critical in setting the tone for the entire logistics process, ensuring that products are handled efficiently to reach the fulfillment center without delays or damage. Storing, picking, and packing processes are also often part of this journey.
Last mile delivery, on the other hand, is the final step in the delivery process, where goods are transported from the fulfillment centre to the end customer. This stage is often considered the most complex and costly part of the logistics process, as it directly impacts the customer experience and perception of the brand.
Let’s unpack each of these concepts better.
Streamlining Your First-Mile Delivery Process
A well-executed first mile delivery process offers minimised costs and faster order fulfillment. How? By significantly reducing shipping errors.
When items are correctly picked, packed, and labelled from the start, it trims the chances of wrong items being sent to customers. This not only improves customer satisfaction but also helps you avoid the costs associated with returns and rectifying shipping mistakes.
In contrast, when this process isn’t managed properly, it can lead to delayed shipments and increased operational costs. Inefficient processes often require more labour, more time, and more resources to complete the same tasks. This can eat into profit margins and make it harder for you to offer competitive pricing or free shipping options.
To improve your first mile delivery, start with these three simple tasks:
1. Optimise inventory management
Implement robust inventory management systems to track your stock levels accurately and ensure that products are always available for shipment.
2. Leverage technology
Utilise advanced technologies such as warehouse management systems (WMS) and automation to improve efficiency and reduce manual errors in the first mile process.
3. Establish strong supplier relationships
Maintain strong communication and collaboration with suppliers to ensure timely and accurate delivery of goods to the fulfillment centre.
When done right, a streamlined first mile delivery can transform your order fulfillment to eventually help your eCommerce business scale and keep up with your growing orders.
The Importance of Last Mile Delivery
While first mile deliveries operate behind the scenes, last mile deliveries directly impact your customers’ perception of your brand. When customers receive their orders quickly and in perfect condition, there will be an increased likelihood of repeat purchases.
This satisfaction fosters long-term customer relationships, providing a crucial competitive advantage in the industry.
To enhance your last mile delivery, start implementing these strategies:
1. Offer multiple delivery options
Provide customers with a range of delivery options, such as same-day, next-day, and standard shipping, to meet their diverse needs and preferences.
2. Use real-time tracking
Implement real-time last mile delivery tracking systems to provide customers with accurate updates on their order status and expected delivery times.
3. Partner with reliable couriers
Collaborate with trusted courier services to ensure that deliveries are made on time and in good condition.
When last mile delivery falls short, customer dissatisfaction resulting from late, damaged, or incorrect deliveries can lead to lost sales and a tarnished brand image. This is why focusing on the critical aspects of last mile delivery can significantly enhance your operations to complete your customer’s last mile experience.
Mastering First-Mile and Last-Mile Delivery with SKUTOPIA
If you’re only starting your business, it can be beneficial for you to handle all your logistics requirements. However, if you’re expecting your business to grow, overseeing these processes on top of promoting your business and handling your core business operations can be easily overwhelming.
To help eCommerce businesses scale with confidence, SKUTOPIA offers cutting-edge solutions for a streamlined first mile and last mile delivery in Australia and beyond.
Technology-led first mile delivery operations
SKUTOPIA leverages advanced robotics to handle first mile delivery processes with maximum efficiency and accuracy.
For example, our robots are programmed to transport materials within the warehouse to ensure that pallets and goods are moved quickly from the inbound docks to storage locations to packing stations. Additionally, our robotic order fulfillment enables a quick pick, pack, and dispatch process.
This technology-led approach ensures orders are always ready for the next stage of the supply chain, so you can fulfill your orders swiftly and with the best quality.
Comprehensive last mile delivery options
When it comes to last mile delivery services, SKUTOPIA offers a comprehensive suite of shipping options, including same-day, next-day, express, and standard delivery services. Our strong partnerships with delivery couriers allow us to offer competitive shipping rates and fast shipping options, catering to various customer delivery preferences.
Integrating real-time tracking with robotic fulfilment systems also allows SKUTOPIA to provide comprehensive last mile delivery tracking. Customers receive instant updates about their shipment’s status, expected delivery times, and any potential delays, enhancing transparency and trust.
By mastering both first mile and last mile delivery, we help businesses enhance efficiency, reduce costs, and deliver an exceptional customer experience.
Partner with SKUTOPIA today.
