Last Mile Delivery Solutions for an Optimized Value Chain

Today, last-mile logistics is playing an ever-increasing role in the success of supply chains. Consumers expect delivery to be fast, flexible and trackable, regardless of the time of day, the quantity they ordered and their location. This means companies are facing more and more complexity and data in a very dynamic environment. But with digital last mile delivery solutions, you can master these challenges and more: Recognizing the strategic value in optimizing last-mile logistics with cutting-edge solutions allows you to improve the performance and fitness of your value chain for the future. Read on to find out how our last mile software helps you optimize your entire value chain.

The last mile is an integral part of the value chain, determining delivery efficiency and customer satisfaction. It’s important for companies to get it right. Many upstream warehouse processes already operate automatically, but the last mile – the most expensive section of the value chain – often has room for improvement. It presents companies with several challenges:

• Which vehicles and drivers are available?
• What is the optimum way to load the vehicle?
• Which route is the most efficient?

At the same time, consumers’ expectations are growing, demanding fast and flexible delivery times as well as transparent package tracking. This significantly increases the complexity of the last mile, making resource and route planning as well as fleet management a lot more challenging.
This is where last mile software come into play. It provides the final piece of the puzzle, linking warehouse logistics and goods transport. With planning, operational, optimization and monitoring processes all connected in one system, you have a powerful, data-driven network at your disposal that responds to demand in real time, allowing you to raise efficiency, service quality and sustainability all at the same time.

Many logistics processes operate according to the classic push principle, which is based on forecasting, historical data and statistical analyses. This model quickly reaches its limits in e-commerce, however, with fluctuating demand, fast delivery and high service levels requiring more flexible and responsive models.
A pull system, on the other hand, processes orders based on the demand at hand instead of relying on prognoses. The logistics process only commences when the consumer places an order in the online store. From this moment, the software plans all steps of the value chain in reverse, calculating which distribution center would be ideal for processing the order and making the delivery, when warehouse processes should start and which route would be the most efficient.
This approach is only feasible using an interconnected, software-based system. Integrating all the data on stock, capacities, traffic and resources creates a seamless fulfillment process ensuring:

• Shorter lead times
• Lower costs
• Higher service levels
• Optimized and more sustainable transport

End customers benefit from transparent tracking, plannable delivery windows and reliable delivery – for companies, a decisive factor for customer satisfaction and retention.

End-to-end last mile software interconnects route and transport management with warehouse processes, optimizing the entire value chain. If an order is ready to be shipped, the software for route and transport management takes over: First, the orders are optimally allocated to the outbound deliveries. Then the routes are planned and the number of trucks selected, all in real time. This ensures that the orders can be tracked from the point the truck leaves the warehouse to when it arrives at consumers’ homes. The drivers use a mobile app to help them navigate on the road, document the delivery process and communicate. Thanks to the all-in-one software, the last mile can be handled more effectively and with a greater focus on the customer, allowing you to flexibly respond to demand and optimize the delivery process.

Digital solutions for the last mile not only make delivery processes more efficient and sustainable, they are strategic to company success. Companies that think in whole value chains and use state-of-the-art technology and digital solutions for the last mile are able to improve service quality, reduce costs and gain a competitive edge.

Our comprehensive last mile delivery solution is revolutionizing the delivery process of a well-known Spanish food retailer. The company used to run two delivery waves daily but now shipments go out every 30 minutes, reducing the delivery window from 12 to 6 hours. Thanks to precision forecasting, the number of shipping docks needed were also reduced from 50 to 20. The fleet can now be managed more efficiently, with 25 % fewer trucks required per day. These improvements have resulted in significant cost and time savings for the company and simultaneously boosted customer satisfaction.