Last mile logistics faces several challenges that affect both businesses and consumers. Although it is a crucial part of the delivery process, it represents a significant portion of logistics costs and complexity.
Below are the main challenges companies face in optimising this process and reducing costs.
High operational costs
The last mile generates high costs due to transportation, fuel, and delivery infrastructure. As expectations for fast delivery grow, companies must find ways to reduce these costs without compromising service quality.
Traffic congestion and infrastructure problems
Traffic in cities increases delivery times, driving up operating costs. Urban infrastructures are not designed to support the volume of deliveries, forcing the need to adapt fleets or resort to alternative solutions such as electric bicycles.
Sustainability and carbon footprint reduction
Companies need to minimise their environmental impact, especially with more efficient vehicles. Adapting to more sustainable options, such as electric vehicles, is key, but it involves considerable investment.
Customer expectations and delivery flexibility
Consumers demand fast and flexible delivery, which complicates logistics and increases costs. Companies must adapt by offering accurate delivery options at convenient times, without compromising efficiency.
Returns and missed deliveries
Failed deliveries generate additional costs by requiring a second attempt or rerouting the package. Companies are looking for solutions such as smart lockers or user-friendly delivery rescheduling software user friendly to reduce these expenses and improve the customer experience.
Addressing these challenges requires logistics companies to adopt new strategies and innovative solutions to optimize their last-mile operations. From implementing advanced technologies to finding more sustainable options, companies must find a balance between improving efficiency, reducing costs and meeting rising consumer expectations.
What strategies do you think will be key in the future to improve delivery without raising costs?
