![]() Our goal is to offer customers an easy and sustainable way to receive, return and ship all of their parcels from one location. "We constantly develop our services together with retailers and parcel companies to respond to our customers’ needs. Smartmile’s CEO and co-founder Aku Happo highlights the logistics industry’s need to address customer needs. From frozen goods to electronics such as mobile phones, customers of many companies can simply choose the delivery options and will receive a code via text message to collect their phone from their selected parcel machine. Service providers like Smartmile offer a solution to address these challenges. In cases where the recipient has no control over the pickup point or delivery time, ensuring the experience quality can become difficult. ![]() Parcel lockers becoming the staple for convenience The most obvious answers are temperature controlled and monitored delivery methods and highly localized, as controlled pick-up spots that ensure product usability without compromising convenience. Last mile, which is in many cases longer than even before, needs to be as efficient and controlled as possible to match these somewhat conflicting requirements. Companies need to consider how to ensure there is as little wastage due to the elements as possible, all the while managing larger quantities of deliveries. On the other hand, missing that last safe, controlled environment can cause the products to expire before being used. Online shopping and ecommerce are not only a trend that goes hand-in-hand with social distancing and remoteness, but also a considerable question mark for ecological effects.ĭirect delivery from store to the end-user allows us to eliminate one step in the supply chain, potentially lengthening the perceived “shelf life” of expirable products like groceries or pharmaceuticals. The decline of brick-and-mortar shopping has only increased with the COVID-19 pandemic. Of those, 20% are likely to switch retailers if they don’t provide delivery services while over half (53 percent) would even be willing to purchase a paid membership for a good delivery service. Especially delivery and e-commerce will need to be prepared to step up their customer experience.Įspecially the food industry should be prepared to give their best: a CapGemini study reveals that 40% of customers order groceries online weekly, and the number could be 55% before the year ends. Their observations reveal that the increase in remote work, both full and part time, also increases the need for efficient last mile operations. In the light of the COVID-19 outbreak, shipping and carrying companies have made adjustments to their last mile operations. In 2018, over 87 billion parcels were shipped in the world. From using data loggers to collect data for quality assurance to utilizing controlled storage lockers, carriers and shippers strive to establish a trusted position in their markets. Carriers can’t ignore the elements even in the last mile, which means new solutions are necessary. However, customer experience has become less of a competitive advantage and more of a competitive must. It’s probably not a surprise that temperature sensitive products can easily be lost in such situations. I’m sure everyone has heard of delivered packages being left under the porch, by the front door, or behind a bush if the recipient is not home. Last mile as a customer experience factor Business Insider estimates that the last mile comprises 53% of all shipping costs. If done right, the last mile can not only save the shipper money, but also establish a good level of trust among their customers.įor products vulnerable to temperature changes, humidity, dryness, or light, it’s also the part where the product is most likely to be spoiled. Therefore, it’s a crucial element of customer satisfaction. Last mile is also the part of the supply chain the customer is most likely to see for themselves. Since speed often requires sacrifices in other aspects, the last mile has seen tremendous jumps in quality thanks to technological development. The primary purpose for the last mile is to have the package arrive in the hands of the recipient as quickly as possible. The actual distance travelled during “last mile” could be anything from a mile to 100 miles: what matters is that it’s the last moving part in the logistics process. Last mile and final mile are the last part of the supply chain before the recipient lays their hands on the product they have ordered. In truth, the final mile can be more than a quarter of the delivery’s total cost. Like I mentioned in the post Last Mile Logistics And Customer Experience, last mile is a concept often misunderstood and overlooked.
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