What Is Final Mile Delivery?

Alexia Smith

November 27, 2018

With global online sales projected to skyrocket in the next few years, online sales in the US alone are expected to surpass $700 billion by 2020. In order to survive in the flourishing and highly competitive e-commerce market, online retailers are adopting customer-first policies designed to ensure customer and revenue retention. 

The logistics and supply chain market has also taken notice, and identified their role in this process. As a result, efficient solutions are being created to fulfill consumer demands for a cost-effective delivery system that is speedy and efficient. 

What is Final-Mile Delivery?

Final-mile delivery, also known as last-mile delivery, is the concluding step in the process of shipping goods from the warehouse to the delivery destination. Proving to be the most expensive and time-consuming part of the entire delivery process, this step is also very complicated, playing a critical role in ensuring the satisfaction and future patronage of the customer. Data suggests that 30% of customers are even willing to pay extra for same-day and instant delivery.

As a result, leaders in the logistics industry are prioritizing the fulfillment of rapidly increasing demand for optimized final-mile delivery solutions.

Who Uses Final-Mile Delivery? 

Final-mile delivery, alongside other logistics solutions, is most relevant to e-commerce businesses and their customers. Retailers operating online understand that customer satisfaction and effective delivery options directly impact the growth of a business. As well as providing memorable and hassle-free experiences, vendors are now also focused on ensuring that packages are delivered to customers as quickly and accurately as possible.

In comparison to destinations in the urban areas, rural routes and terrains may be tricky, with package drop-off locations spread out miles apart. Customers residing in far-flung rural locations, and the businesses that cater to them, stand to benefit the most from effective and efficient final-mile delivery services. Maintaining and improving on this process is vital for the success of online retailers and well as logistics and transportation businesses.

Why is Final-Mile Delivery Important?

With the number of online orders increasing by the day, retailers and their supply chain partners must be able to ensure that all products are delivered to their customers without a hitch. Last-mile delivery alternatives allow retailers to provide and guarantee exceptional service to their customers while keeping up with the fast-changing demands of the e-commerce industry.

Final-mile delivery also holds a great significance in the minds of the customer as this step of the process is imperative to the “post-purchase experience”. With a great final-mile delivery solution in place, the customer is left with a lasting positive impression, making it more likely to convert them to a returning customer. Offering incredible convenience and reliability, as well as speedy and cost-effective delivery options, final-mile delivery services can single-handedly boost a brand’s customer retention while cutting down on shipping costs.

Improving Final-Mile Delivery

As with every service, final-mile delivery has its own fair share of challenges and drawbacks. Delayed and failed deliveries, as well as the ever-increasing costs associated with traditional shipping services, are just a few of the obstacles. Identifying these issues has driven the logistics industry to devise time-saving and cost-effective solutions to streamline the last-mile delivery step.

Adopting the latest technology, the use of drones, robots, and autonomous vehicles have been implemented to ensure speedier deliveries, at a lower transportation cost.

Locally constructed warehouses allow more efficient deliveries, while special apps designed to let customers track their purchases using sensors and smart technology also serve to improve the shipping process.

How Dispatch Can Help

Dispatch merges innovation and technology to curate an iron-clad system that presents a dependable and trackable local final-mile delivery method to their customers. In an effort to streamline its operations, the company offers a mobile application that allows businesses complete control and insight into the delivery of their products.

Using the ‘tap, track, and deliver’ approach, retailers are able to track the “final-mile” journey of the delivery in real-time. Moreover, tracking links can be shared with friends and co-workers, ensuring that deliveries are never misplaced or left undelivered.

With an aim to offer high-standard and cost-effective solutions, Dispatch sets itself apart from traditional delivery services by combining technology and innovation to streamline inefficiencies in the distribution industry.  

No items found.

More from the Newsroom

View More

Stay up-to-date with Dispatch news & announcements

Thank you for signing up!
Oops! Something went wrong while submitting the form