Customers want their goods delivered where they are, fast. Last mile delivery, which is the transfer of goods from the warehouse to their final delivery position, poses the biggest challenge for retailers due to its potentially high costs. If you plan to offer free shipping to your customers, you have to bear these costs and still find a way to break even.
Dealing with absentee recipients
The Madrid-based company solves the problem of absentee customers during delivery. The Citibox app enables carriers to nail first-time delivery by the use of small mailboxes installed in apartment buildings. Such a model assures delivery and prevents time wasted in finding alternative means of delivery when the carriers do not find the customer.
Saving on fuel
When you are making your deliveries, the biggest cost that you have to incur is fuel. Start by using a fuel-efficient vehicle. Secondly, train your drivers to adopt the best driving practices to save fuel. Your sales associates should also avoid wasting a lot of fuel doing things like sitting in the vehicle under air conditioning between deliveries.
Outsourcing last mile delivery
Another trend in outsourcing is crowd sourcing. In such a case, freelance drivers can collect orders from your store and deliver them to customers. Freelancers save you the cost of hiring in-house staff and vehicle maintenance and repair. You will also save on the costs of hiring permanent employees because you will only have the number of staff you need for delivery during seasons when orders are few.
Planning on the most optimal route you can use will help you save lots of costs. There are numerous route planning software that you can use. Economical route planners come with a GPS tracking feature. There is no ideal way to cut the costs of last mile deliveries.