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10 Reasons the Retail Industry Should Invest in a Last-Mile Delivery Solution

Updated: Aug 13, 2022

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Every industry has dealt with the fallout or repercussions caused by COVID-19-related disruptions to the supply chain. Finding last-mile retail delivery solutions continues to be a priority for managers. The need for practical and applicable last-mile delivery in retail involves saving money and reducing the expenses associated with this vital yet often overlooked leg of the shipping journey.

Optimization through last-mile delivery solutions significantly improves delivery success rates while boosting profits for shippers and retailers. According to Insider Intelligence, “As a share of the total cost of shipping, last-mile delivery costs are substantial—comprising 53% overall.” Working with the right partner makes it easier to prepare for known and anticipated disruptions within last-mile delivery while providing the best delivery services available. It is much easier to grow and scale with high-quality last-mile deliveries.

There are many reasons why retailers should invest in improving logistics and platforms. Quality and reliable delivery services remain essential to the continued growth and recovery of the market. Every aspect of supply chain shipping and tracking relies on implementing sound last-mile retail delivery services. It is easy to see why last-mile retail delivery service providers are garnering so much attention. Traditional logistics and delivery methods are no longer viable options. To understand why take a look at last-mile delivery in retail more closely.

The top 10 reasons to use last-mile delivery services are as follows.

1. Staying Competitive With Amazon Depends on Efficiency in Last-Mile Retail

The shipping industry has always been competitive; this has only intensified with the Amazon effect shaping consumer demands and expectations. Effective last-mile delivery in retail remains critical for continued growth and recovery. Transportation service providers look for new and innovative tools, technology, and processes to improve delivery solutions while staying competitive. As pointed out by Insider Intelligence, “With crowdsource technology, retailers, logistics partners, and consumers can connect directly with local, non-professional couriers who use their own transportation to make deliveries.” Retail delivery solutions continue to change to keep up with market trends. Last-mile delivery in retail provides an opportunity to compete with Amazon and other industry giants.

2. The Last-Mile in Retail Is More Costly Than Any Other Mode

Another reason for a renewed focus on the final leg of the shipping journey is that the last-mile is the most expensive transportation mode. Offering various last-mile delivery in retail makes it easier for shippers to appeal to consumers and meet their needs. However, this adds to operational and overall shipping expenses. Proper management of final deliveries is critical for maintaining high profits and reducing operating costs. Of all the reasons to use last-mile delivery, retailers can benefit the most from reducing overall shipping expenses and costs associated with common delivery problems. Partnering with a dedicated last-mile or drayage expert can reduce shipping risks significantly and save shippers money on every load.

3. The Last-Mile Is Filled With Risk of Damage/Loss

Every load a shipper carries comes with some level of risk. . Equipment failure and other issues can lead to damaged shipments, load loss or rejection. These risks are part of the territory and are widely accepted. However, last-mile delivery is rife with additional risks, which is why customers find last-mile delivery in retail so appealing. With the right 3PL partner implementing optimized retail delivery solutions, risks related to traffic delays, weather disruptions, driver errors, and more decrease. Shippers can be prepared ahead of time rather than go into a delivery blind with no plan to overcome these last-mile issues when they occur.

4. Last-Mile Delivery Solutions Should Offer Real-Time Visibility

Last-mile shipping help remedy this with reliable innovations that simplify shipping for all parties involved. Based on reports from Insider Intelligence, “with the ongoing integration and enhancement of automation across industries, it’s likely we’ll start seeing delivery robots, drones, and self-driving vehicles making many of these drop-offs in the not-so-far future.” At the same time, most companies are not at this level just yet. Retail needs last-mile delivery improvements, including faster, more reliable deliveries and personalized options. Automated systems and real-time data analytics allow for better management of delivery options overall.

5. Retailers Need Indisputable Proof of Delivery

One source of delays and expenses associated with supply chain final delivery is the paperwork involved. Proof of delivery, invoice papers, container manifests, and other vital documents and forms must be handled and managed efficiently at the time of delivery. Customers view brands favorably that provide solid last-mile shipping in retail that takes care of all the final red tape, paperwork, and documentation required.

Missing certain forms, losing signatures, and poor filing of documentation can lead to extensive and expensive delays. With last-mile delivery solutions in place, retailers get documentation and proof of delivery quickly and easily. Drivers and shippers also enjoy a faster and smoother handoff to get on their way to the next delivery.

6. The Last-Mile Needs a Sustainable-First Strategy

Sustainability and environmentally friendly shipping are not just industry buzzwords today. More than ever, consumers are consciously looking for sustainable shipping and parcel delivery options. Managing fuel consumption, resource management, and emission levels have quickly become major selling points for shippers. last-mile in retail shipments can give providers an advantage over competitors stuck with old and outdated methods.

Embracing sustainable retail delivery solutions has a positive impact. Focusing on improving last-mile logistics demonstrates a commitment to sustainability.

7. Retailers Want Set-It-and-Forget-It Solutions

Retailers’ attention and resources are pulled in a dozen or more directions at any given time. Fast, convenient, and reliable shipping gives them one less thing eating up their time. A set-it-and-forget-it approach is possible with the right tools and automated processes. last-mile delivery in retail today is so appealing because they automate much of the process rather than shippers having to manually go through all the paperwork at the time of delivery. This is why retail needs last-mile delivery options customized for specific delivery needs. Last-mile logistics allows retailers to spend less time on extraneous tasks and focus on what really matters.

8. Managing Multiple Vendors Is the Essence of a Quality Last-Mile Solution

High-quality last-mile delivery in retail involves streamlining vendor interaction and management. No one company handles all shipping needs and deliveries. Keeping track of multiple vendors and last-mile KPIs can quickly become overwhelming. Mistakes lead to costly errors that significantly impact customer experience and bottom-line profits. Overall productivity improves with reliable access to last-mile delivery and vendor management.

Improving communication between vendors and partners and boosting customer satisfaction is at the heart of retail delivery solutions.

9. Retail Is Gradually Evolving to Become Synonymous With Pharmaceuticals Too

The face of the retail market is constantly fluctuating and changing to meet customer demands and respond to manufacturing and supply disruptions. One rising trend is the continued focus on pharmaceutical and other temperature-controlled freight transportation.

Last-mile in retail loads can play a vital role when considering medical shipping and other reefer freight transportation. Cargo that must remain at a specific temperature requires proven last-mile delivery solutions that provide the specialized shipping and handling needed to ensure safe and on-time parcel delivery.

10. Inefficiencies in Last-Mile Routing Lead to Delays

The final reason to use last-mile delivery service lies in the sheer impact of inefficiencies and errors. Minor issues can lead to significant delays. This can easily set off a chain reaction of major delays, disruptions, and issues throughout the delivery process, leading to an unhappy customer. Final delivery, by its nature, is prone to last-mile problems and obstacles. The risks for delays are higher than with any other shipment mode today.

Staying on top of shipping trends and implementing quality last-mile shipping in retail can help managers spot inefficiencies and work more efficiently to overcome them. Streamlining the processes involved ensures customers get the fast and reliable shipping they expect while shippers keep their trucks full and on the road.

Overcome These Barriers With the OneRail Platform

There are many reasons to use last-mile delivery for retail services. Yet many in the shipping industry today still wonder why retail needs last-mile delivery. Looking at current service trends and where they fail to meet current market demands and customer expectations shows where things have to improve.

Finding the last-mile delivery solutions right for a specific customer or load can be daunting. Working with the right partner can make it easier to overcome these common barriers and provide the best delivery services. OneRail is committed to improving last-mile delivery for everyone by diffusing exceptions and responding to disruptions to get what they need to succeed.

With a proven and reliable delivery network, more sustainable operations, and access to capacity, they are ready to help improve retail delivery solutions for your company. Contact OneRail for a demo and learn more about maximizing last-mile delivery in retail today.

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