Enhancing last-mile delivery with business automation

In logistics, last-mile delivery refers to the final stage of a product’s journey from a distribution hub to the customer’s doorstep. This step is crucial because it's the most visible part of the delivery process, directly impacting customer satisfaction.  

Whether it’s a pair of shoes or groceries, customers expect fast, reliable, and affordable delivery. But meeting these expectations poses significant challenges for logistics companies. From high delivery costs to navigating urban traffic, the last mile remains a complex puzzle.

Explore how business automation helps logistics companies overcome these hurdles and meet customer expectations while controlling costs.

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Key challenges in last-mile delivery

Last-mile delivery is one of the costliest and most difficult aspects of logistics. Below are some of the most common challenges logistics companies face:

• High delivery costs. The last mile accounts for a large portion of total logistics costs. Labor, fuel, and inefficiencies such as unnecessary detours all add to this expense. It's estimated that up to 53% of the total shipping cost is tied to the last mile alone. ‍
• Traffic and route optimization. Deliveries in urban areas face unpredictable traffic, construction, and road closures. Inefficient routes cause delays, waste fuel, and reduce overall productivity.

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• Failed deliveries. Missed deliveries occur when customers aren’t available, or the addresses are incorrect. This leads to expensive reattempts or returns, making the process more costly and time-consuming. ‍
• Limited visibility. Without real-time tracking, logistics managers have difficulty monitoring fleet performance and ensuring deliveries are on time. This also reduces transparency for customers waiting on their packages. ‍
• Environmental impact. The environmental toll of last-mile delivery is substantial. The high volume of vehicles on the road contributes to carbon emissions, making it difficult to maintain sustainability goals. In addition, city congestion only increases fuel consumption.

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How automation addresses last-mile delivery challenges

Business automation provides a suite of tools that can transform last-mile delivery from a complex and costly problem into an efficient and customer-friendly process. By integrating technologies like AI and real-time data, logistics companies can streamline operations, lower costs, and improve customer satisfaction.

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Route optimization

Automating route planning allows logistics companies to optimize deliveries in real time. Automation systems use AI to analyze traffic patterns, weather conditions, and historical delivery data to create the most efficient routes. This minimizes fuel consumption and reduces delivery time by helping drivers avoid traffic jams and take the fastest routes available.  

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Fuel cost reduction

By reducing the distance traveled and preventing unnecessary detours, automation also significantly cuts fuel costs. With intelligent route planning, companies can schedule deliveries more effectively, reducing idle time and avoiding congested routes that waste fuel. This not only cuts down on operational expenses but also reduces the environmental impact. Some cities now work together with logistics companies to provide a more efficient use of urban space and minimize impact.

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Real-time tracking and updates

Automation provides real-time visibility into the entire delivery process, allowing logistics companies to track vehicles in motion and make quick adjustments to routes when needed. This level of transparency also benefits customers, who can receive up-to-the-minute updates on their delivery status, increasing satisfaction and trust.

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Enhanced delivery accuracy

Failed deliveries due to incorrect addresses or unavailable recipients are costly and frustrating for both companies and customers. Automated systems can verify addresses before shipping and ensure accurate tracking of every package. This reduces the likelihood of failed delivery attempts and helps logistics companies avoid costly reattempts or returns.

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Faster decision-making

Logistics is a dynamic field, with conditions such as traffic or weather changing rapidly. Automation allows logistics companies to react to these changes in real time. With automated data analysis, logistics managers can make fast decisions about rerouting, delays, or rescheduling deliveries, improving overall efficiency and customer satisfaction.

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Case study: NCR’s automated freight routing system

NCR, an ATM and Point of Sale equipment manufacturer, built a fully automated feed of purchase orders to analyze and select the best shipping options in real time. This allowed them to reduce shipping expenses and create a more predictable and efficient supply chain.

Using Triggre, NCR optimized both inbound and outbound freight routing, significantly improving efficiency. With automation, NCR achieved lower transportation costs while maintaining high levels of customer service.  

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In conclusion

Last-mile delivery is a critical phase of the supply chain, but it presents numerous challenges for logistics companies. From high costs to environmental impact, the last mile demands efficiency, accuracy, and customer-centric service. Automation, powered by tools like real-time data analysis and AI-driven route optimization, is revolutionizing how companies approach this vital step.

By automating the planning and execution of last-mile deliveries, logistics companies can enhance customer satisfaction while simultaneously reducing operational costs.  

Ready to transform your last-mile delivery process? Get in touch to explore options and build your business case today.