How 3PLs Can Enhance Last-Mile Delivery

ast-mile delivery remains one of the most critical and challenging components of the supply chain. It’s the final stretch of the delivery journey, where packages travel from local fulfillment centers or stores to the end customer’s doorstep. Driven by the rise of eCommerce, globalization, and advancements in delivery technology, the global last-mile delivery market, valued at $164.74 billion in 2023, is projected to more than double, reaching $357.45 billion by 2031, according to a new report by InsightAce Analytic. 

As consumer expectations for faster and more reliable last-mile deliveries increase, businesses are turning to third-party logistics providers to optimize their last-mile delivery operations. Here’s a look at how businesses can benefit from partnering with a 3PL for this crucial part of the supply chain.

Third-party logistics providers often have extensive experience and established networks in local markets. Their deep understanding of regional nuances, traffic patterns, and customer preferences allows them to optimize delivery routes and times. By leveraging local knowledge, 3PL providers can improve delivery efficiency and reduce transit times, leading to higher customer satisfaction.

In urban areas, for example, traffic congestion is a major challenge that can cause significant delivery delays. Third-party logistics providers with local market expertise are familiar with peak traffic hours, shortcuts, and alternative routes that may not be immediately obvious through standard GPS navigation. This allows them to plan routes that avoid traffic bottlenecks and ensure timely deliveries.

Last-mile delivery options are growing with expanding eCommerce product categories such as furniture and appliances. However, nearly half of retailers face significant logistical hurdles with oversized items, according to a new study conducted by Roadie, a UPS Company, in collaboration with studioID. Some retailers are partnering with 3PLs to help them facilitate efficient big and bulky last-mile delivery. The report also notes that companies that have outsourced the delivery of bulky goods have seen a 62% increase in productivity. 

Third-party logistics providers are also helping companies make their last-mile delivery operations more sustainable and adaptable to crowded city streets.. Some 3PLs maintain specialized fleets that are designed for urban environments, including electric vehicles or bicycles. These alternatives can navigate congested areas more efficiently and are less impactful on the environment.

Customer expectations for flexible delivery options are on the rise, and 3PL providers are stepping up to meet these demands. Many 3PLs offer a range of delivery options including same-day, next-day, and scheduled delivery services. Providing greater flexibility by allowing customers to choose specific delivery time-windows that align with their availability and preferences minimizes the chance of missed deliveries and makes it easier for customers to receive their orders without disrupting their daily routines. 

Smart locker systems located in easily accessible public areas like shopping malls, transit hubs, or residential complexes provide another layer of flexibility. Customers receive a code to unlock their specific locker, allowing them to pick up their package at a time that suits them. This is particularly useful for those who live in areas where home deliveries may not be secure or convenient. Providing customers with the ability to choose how and when they receive their packages enhances the shopping experience, reduces failed delivery attempts, and improves delivery efficiency.

Modern 3PL providers utilize advanced technologies to enhance last-mile delivery. From real-time tracking systems and route optimization software to mobile apps for delivery personnel, technology plays a crucial role in streamlining last-mile delivery operations. These tools provide accurate delivery estimates, enable better communication with customers, and allow for efficient route planning, minimizing delays and enhancing service quality. Delivery management systems enhance the execution, coordination, and management of delivery fleets, reducing delivery times and improving response rates for on-demand delivery requests.

As eCommerce continues to grow and customer expectations evolve, partnering with a proficient 3PL provider can help businesses navigate the complexities of last-mile delivery, achieve operational excellence, and deliver exceptional service to their customers.

For more information about how our delivery management solution can help you manage your deliveries more efficiently, please contact info@bringoz.com.