9 Effective Last Mile Logistics Strategy
- Planning Is Essential To Have an Effective Last Mile Logistics Strategy
- Leverage the Right Technology as Part of Your Strategy
- Analyze Everything
- Manage the Whole Last-Mile Delivery Process
- Be Consumer-Centric
- Think Outside-the-Box
- Measure Performance
- Manage Returns Thoroughly
- Location
Last mile strategies in retail and Logistics Management are necessary if companies want to sustain their competitive edge and stay ahead of the competition. Companies need to look at how they can reduce costs, streamline operations, and improve productivity. These improvements come from improving the last mile of business.
The last mile in a retail or distribution facility is the last mile of receiving and distributing products. It is also one of the most dangerous locations, as product and staff accidents can result in large-scale losses and even shut down of the facility. Businesses, therefore, have to look for ways to improve the last mile strategies in retail and Logistics Management.
Performance Measurement
The first step to improving the last-mile logistics tracking is to gather information about how well the company is performing. Some of the information that should be collected include metrics on capacity, efficiency, productivity, and error rates. Metrics help managers measure performance and give them insights into what is working and what is not. It enables managers to set benchmarks against which improvements can be measured. For instance, when an improvement is made in one department, it will be reflected in another department.
Data Collection
When collecting metrics for last-mile logistics carrier tracking and how it benefits customers, it is important to have a standardized way of reporting data so that there is consistency across the organization. Managers should collect all the relevant information in a standardized format and compare it with the other metrics. There are several standardized formats such as Using Internal Control Improvement System (ICIS) and IFIS. By using standardized metrics, managers can look at each department individually to determine areas of improvement.
Increase customer satisfaction
Another aspect of last-mile strategies in retail and Logistics Management is reducing delays in order to increase customer satisfaction. The last mile includes time-consuming activities such as receiving, loading, and unloading products. In order to improve customer satisfaction, managers should shorten these activities or provide alternatives for customers who cannot complete these tasks on their own. Standardizing processes for receiving, loading, and unloading products will help decrease the average time required to do each activity in store.
Along with standardizing processes, there are also ways to standardize practices. The last-mile strategies for retail and Logistics Management include using standard work procedures when possible and eliminating inefficient practices. Creating formal training programs is another last-mile strategy. These programs should be designed for the type of merchandise being stored and used. Using visual aids and providing training seminars to personnel who handle last-mile deliveries can greatly reduce wasted work hours and improve customer satisfaction.
Be Consumer-Centric
Last-mile strategies for retail and Logistics Management can also include implementing an efficient shipping procedure for outgoing shipments. Having a single point of contact for all shipping procedures can save time and money by reducing routing conflicts between different stores or warehouses. Having a single shipping carrier provide all available services and goods that are required for a particular shipment simplifies the routing process, which in turn saves on time. Many businesses also store goods at different warehouses and ship shipments from one warehouse to the other based on their cost savings options.
Effective Communication
The last-mile strategies for retail and Logistics Management also include improving communication between stores and suppliers. In a fast-paced world, it is sometimes difficult to keep tabs on the flow of inventory. Suppliers can sometimes push back when they are carrying a large order. When this happens, it can take weeks or even months to get an order back in. A lack of communication leads to missed opportunities and an inability to maximize profits. Standardizing the supply chain from supplier to store simplifies the supply chain and allows for more timely orders and returns.
Last-mile strategies and practices must be updated on a regular basis to accommodate changes in the industry. As technology and business trends change, it is important to stay on top of the latest practices. Implementing new practices as they are developed can lead to long-term improvements.
