How to Minimize Last Mile Delivery Costs

How to Minimize Last Mile Delivery Costs

Published on: June 15, 2020

One thing that consumers don’t realize when they place an order online is the amount of effort that goes into the preparation and delivery of their purchase. As consumers, you add the item to your cart, hit buy, and somewhere someone is taking your product and preparing it for shipment. Depending on the brand and distributor, consumers can receive their goods within 24 to 48 hours. For some eCommerce brands, most of the costs are incurred because of last-mile delivery costs.

What is Last-Mile Delivery?

Last-mile delivery is the final stage in transporting goods from the warehouse or distribution center to the consumer. eCommerce businesses typically have one large warehouse where they prepare, ship, and handle returns and exchanges. Last-mile delivery costs can account for up to 53% of a brand’s total shipping costs.

Bond – The Post Purchase Company offers affordable last-mile delivery services to leading direct-to-consumer brands. How? Through easily integrating with your brand’s eCommerce platform, Bond can optimize delivery routes and ensure consumers receive their goods on the same-day or next-day.

Money-Saving Solutions

Operating out of one large warehouse is not a cost-effective business practice when you are shipping coast-to-coast.

What’s a Brand to Do?

There are three ways that your brand can save with last-mile delivery.

The first thing is fulfillment. Fulfillment is where companies focus on the preparation and packaging of the goods. The fulfillment of a company can take place in one large warehouse, or in multiple micro-distribution centers. This approach is one that Amazon utilizes, which is why they can meet same-day and next-day deliveries.

Deliveries is the second cost-saving practice a company can evaluate when looking for cost-saving solutions. Distribution can account for a large chunk of the overall costs of a shipment. To minimize delivery costs, looking into 3PL or a post-purchase company like Bond can be a step in the right direction. Working with local carriers can help reduce costs that are typically incurred due to the distance or because packages go through multiple channels. For example, a company with one warehouse may find they are using up to two carriers before it makes it to the destination. With Bond or other last-mile delivery services, the customer places an order, and within hours the product is at their door because their distribution centers are closer and their carriers are locals.

The final cost-saving solution for companies shipping coast-to-coast is the leveraging of the ample software and technology available to streamline many manual processes. For example, having software that can update your inventory in real-time can cut back on the need for manual inventory reporting. When you have multiple smaller distribution centers this can help ensure there is enough supply at each location.

Cost-saving solutions require brands to think outside the box and embrace new trends in  eCommerce and logistics. UPS and FedEx are now competing with smaller and more local couriers as brands are looking into alternative and faster forms of delivery.

Optimization Leads to Savings

Once a business has considered the last-mile dilemma in its business operations, it can look at other ways of optimizing the process even further.

How so?

A significant way of optimizing the last-mile is through strategically planning based on time, location, distance, and even traffic. This can help promote efficiency in delivery; therefore, enhancing the customer experience. Optimizing services and business operations not only cuts out idle or wasted time, but a company that can maintain efficiency without impacting quality is a business that is going to thrive amongst its competitors.

So, Last-Mile with Bond?

Using a network of nano-distribution centers, Bond enhances the post-purchase experience for brands  and their customers. Forget about multi-million dollar square footage warehouses and consider smaller centers paired with local distributors to deliver your goods and services. Establish a bond with your customers that is sure to have them coming back for more.

Last But Not Least

The last-mile of a business operation is the costliest part of the chain. eCommerce brands that reassess, revisit, and revise their business operations to allow the last-mile to be streamlined and local are going to find they can better meet the demands of their customers. Maintaining customer satisfaction and retention should not have to cost you. This is why Bond is on a mission to create different kinds of relationships between brands and their customers. Look beyond the shopping experience and consider the post-purchase as your advantage to thriving against competitors.

Let's talk today, so you can deliver smarter tomorrow!

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