January 22, 2024
How Do B2B Incentives…
B2B Incentives – How and Why to Use Them B2B...
Simply put, last mile delivery is defined as the last part of the journey of goods from a warehouse, or some other transportation hub, to their final destination. More often than not, that is your doorstep.
Last mile delivery is a vital link in the logistics chain, it’s the most consumer visible, it’s often the most demanding and it’s the costliest. In fact, 53% of the delivery cost is incurred in the last mile.
Despite what you would presume the term means, the last mile is typically a journey of around 30 miles or so.
A quick step by step guide to last mile delivery:
Let’s go through some of the challenges the logistics sector faces with last mile delivery…
Did you know 85% of Australians expect a package to be delivered in three days? It’s safe to say that it’s a similar story in countries where the boom has become an explosion of home delivery. From two-hour ketchup delivery through Prime, to white vans stuffed to the gills with products making their final trip.
In fact, 24% of all retail sales worldwide will soon be completed in ecommerce transactions.
That’s a lot of demand to keep up with.
Delayed, or incomplete, deliveries are nightmare fuel for sellers and drivers. All the costs are absorbed back into the business through refunds and returns to avoid damaging customer experience.
Clean Air Zones (of which ULEZ is one) are springing up all over the country. One of the most recent being implemented in Newcastle in January 2023. They are designed to clear the air for pedestrians and residents as air pollution is thought to be responsible for many forms of illness.
Yet, with the shift to an ecommerce society, heavily weighed against customer expectations CAZs or ULEZs can make things interesting for last mile delivery.
Lorries over 3.5 tonnes that do not meet Euro 6 Standard for emissions are charged £100 a day in ULEZs. Vans are charged £12.50 a day, depending on if they meet Euro 6 for diesel emissions or Euro 4 for petrol.
Throw in a cost-of-living crisis and that’s a lot of extra expense to cover.
Focusing efforts on last mile delivery will make you stand out from the competition and grow your business.
Your logistics operations need to meet customers’ expectations as their demands are not changing. The jack is well and truly out of the box on that front.
Electric Vehicles (EVs) and cargo bikes can diversify and future proof your business and open up the opportunity for you to make critical deliveries in a CAZ.
Allott and Associates is a specialist B2B PR and Marketing agency with expertise in niche sectors such as logistics.
So come and join us, and we will help you along your marketing journey.