What is meant by Last Mile Logistics?
When we talk about Last Mile, in the world of Logistics, we mean the last portion of the route taken by a package being delivered, so from the warehouse to the customer’s home with Home Delivery, to the store in Click & Collect mode or to the Collection Point so Locker, Newsstands, Supermarket, etc.
Until recently, the only option allowed was home delivery, but Click & Collect and the use of automated Pickup Points or Lockers is a rapidly growing trend.
Among the consequences of Covid-19 we see a 26% YoY increase in the Ecommerce market in 2020.
This means more parcels and more complex Supply Chain that suddenly has to adapt to shipping in 24h, Same Day and in 1 hour.
On the other hand, Merchants or E-Commerce are also investing more and more attention and money in the Customer Experience, trying to make the Online – Offline transition smooth and vice versa.
Why Optimize Last Mile Logistics?
2019 saw 70 percent of shopping carts abandoned according to Casaleggio Associates.
In addition, the Baymard Institute reports that 59% of users experience problems with delivery and in particular:
- 55% experience high delivery costs
- 35% few delivery options
- 30% uncertain delivery timelines
- 11% unsuitable return practices
These data logically lead to one conclusion: optimizing Last Mile Logistics Management in the Digital Age and with Digital tools is not only recommended but is INDISPENSABLE.
Let’s figure out how to do it together in upcoming GEL Proximity articles.
Next week we will introduce Omnichannel Logistics Strategy and Definition.
