4 tips to optimize last-mile delivery & maximize profit

Business, Clients
Optimizing last-mile delivery

Last Mile Delivery represents the final leg in the distribution process. It starts at the fulfilment center and ends at the customer’s door. With the exponential growth in internet and online infrastructure in India, it’s no surprise that the E-commerce market experienced a boom. This surge in E-Commerce sales is the driver behind the rising demand for Door Deliveries. Global last-mile delivery market size has reached over $3 trillion in 2018 and is expected to exceed $5.5 trillion by 2025. Over a period of just 18 months, between 2017 and 2018, B2B last-mile delivery demand has increased by 33%, whereas B2C demand increased by 67%.

Quiet obviously, the costs associated with meeting this demand, especially on the delivery front are also increasing. Retailers are unable to shift this cost to the customers fearing churn. Therefore businesses & Logistics GOGOX Drivers should stay abreast with the dynamic customer demands as well as optimize their delivery services to be on top of the game.

In this blog, we will look at how to optimize Last Mile Delivery so as to meet customer’s ever growing demands and maintain profitability.

Data driven delivery decisions

Making delivery decisions by analyzing and predicting trends can improve efficiency and reduce wastage. Some key data to study on a daily basis are:

  • Number of deliveries completed
  • Distance covered
  • Average time per delivery
  • Idle time
  • Successful vs. failed deliveries
  • Repeat deliveries 
  • Missed deliveries
  • Delayed deliveries 
  • GOGOX Driver performance analysis
  • Traffic

Route Optimization

Route optimization is the process of finding the shortest and the most cost-efficient route to fulfil a delivery. Delivery carried out through properly optimized routes is one of the most efficient ways to reduce costs and streamline operations. There are many route optimization software’s that will determine the optimal route and assign tasks based on the above listed variables.

Choosing the correct delivery vehicle

With a wide array trucks ranging from 1 to 6+ tons, it is very important to choose the right vehicle for the right delivery depending on the volume of goods, distance to travel, route and traffic. A size too big would mean wastage of vehicle capacity and a size too small would mean doing multiple trips for the same route. Click here to learn more on the type and size of vehicle to choose. 

Reduce fleet expenses through driver education

Idling has long been a problem for fleets and fleet managers, and it has no long-term benefits to the business sustainability. It’s a harmful contributor to CO2 emissions and noise pollution, and it consumes excess gallons of fuel, resulting in increased fleet expenses. It’s important to educate and on board drivers about the harmful effects of idling. By reducing idling, businesses can save on fleet expenses by reducing unnecessary wastage of fuel and maintenance costs.

Working with a third-party logistics provider will eliminate the need for you to invest in delivery software, warehouse space, transportation, and the manpower needed to handle all final mile delivery processes. This in turn, will allow you to focus on your core competencies such as product development, customer service, etc. and scale-up your business.

GOGOX has the eXperience, eXpertise to deliver eXtraordinary Logistics Solutions for all business needs. If you’re looking for a top logistics company, GOGOX can help!! 


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