The process of moving goods from a shop or warehouse to your doorstep is known as ‘last-mile delivery’. This process can be done in a multitude of ways: through a company-owned fleet of delivery vehicles, third-party contracted delivery companies, or a combination of both. 

It is the final stage of the delivery process and is arguably the most important one. If done efficiently, it can generate a number of benefits ranging from increased customer satisfaction, faster delivery times, and revenue increase. 

It is no secret that the last-mile industry is one of the largest polluters in the game. However with the introduction of e-bikes and other sustainable alternatives, this sector is slowly becoming a greener and more eco-friendly industry. 

For retailers looking to explore or introduce themselves to last-mile delivery, this blog is for you. We aim to break down both the advantages and disadvantages of outsourcing your last-mile delivery so you can make the right choice for your business. Not only that but we discuss innovative solutions that can help you transform your local store or business into a multi-faceted fulfilment hub by partnering with Packaly. 

The Disadvantages of Outsourcing Last-Mile Delivery 

Sustainability

The logistics industry is one of the most polluting industries on the planet. Previously the last-mile delivery industry has relied heavily on the use of diesel vans and trucks. These vehicles emit large amounts of harmful chemicals in our atmosphere, not only disrupting the natural environment, but also creating challenges for those living in urban areas. 

For businesses that are wanting to veer away from such unsustainable practices and adopt a more environmentally friendly approach, then outsourcing to a traditional last-mile carrier might not be the best solution. 

Increased Cost 

There are increased costs associated with last-mile delivery that can be difficult for companies to manage. In a blog written by Michael Keenan for Shopify, he states that, ‘It’s (last-mile) typically the most expensive part of the delivery process, since it can involve multiple stops.’ While this is not always the case, the cost of using an external last-mile delivery carrier might increase overall expenses for your business.

Reliability

When you hand over a part of the customer journey to a third party contractor, reliability is another essential element to consider. After all, if they can’t get your orders delivered on time and in a good condition, how positively will this reflect upon your own brand?

While there are a number of excellent last-mile partners out there, some have not mastered the art of speed, efficiency, and customer satisfaction. 

Potential Customer Dissatisfaction 

Expanding from reliability, poor last-mile carriers can cause customer dissatisfaction. When ordering online, the only real contact the customer has with your business is the experience they have during the shopping and checkout process, and the physical delivery itself. Now as a retailer you can control the shopping experience and packaging, but outsourcing the last-mile means you cannot completely control the final stage of the delivery. 

Negative experiences can stem from the delivery interaction so it is vital that you take this into account before outsourcing your last-mile. 

The Advantages of Outsourcing Last-Mile Delivery

Scalability

Upon discovering the right last-mile partner(s), you will be able to expand and scale up your business faster. Without having to worry about reaching the right customers, understanding the logistics of the market, or adding new projects to your already complicated process.

Having an effective last-mile partner will allow you to target different customer segments, whether through fast delivery, sustainable delivery, track and trace, or simply by choosing a courier company people can trust.

Enhanced Customer Experience

Customers are increasingly wanting faster and faster delivery options. With effective last-mile delivery, businesses can provide this type of same-day or next-day delivery service to their customers. This greatly enhances the overall experience and can be a strategic selling point for brands wanting to offer quick and efficient delivery options at checkout.  

Efficiency

Last-mile companies provide their services to many companies and are always looking to invest in improving their business efficiency. This includes investments in staff training, the right technology and tools, customer experience, routing, and more. 

Increased Revenue 

If you are able to largely scale your business and deliver more packages to a greater number of customers, then you will inherently increase your revenue. Alexandra Samet from EMarketer states that, ‘Companies with quick and dependable delivery services are more likely to acquire and retain clients, which boost revenues.’ 

The Perks of Partnering with Packaly 

Not only do we adhere to all of the advantages of outsourcing your last-mile delivery, but we also provide solutions to the disadvantages outlined earlier in the blog. 

How we are sustainable:

The entire Packaly ethos is built on sustainability. When our brand was founded in 2018, the vision was to create a sustainable alternative to traditional delivery. Over the years we have helped countless retailers lower their carbon footprint with our CO2 neutral bike courier fleets. 

How we lower costs:

We don’t want you paying an arm and a leg for our service. Unlike many other companies, we only offer a pay-per-parcel model. This model determines your cost based on the number of parcels we deliver to your customers, rather than being set on a fixed fee that could cost your business more throughout off-peak seasons. 

How we are reliable:

The team at Packaly continuously strive to ensure that our couriers are upheld to the highest of standards. This means we aim to achieve +98% on time delivery and always deliver packages in a neat, tidy, and friendly manner. 

How we enhance customer satisfaction: We know that happy customers equals repeat purchasers. Not only do we ensure that our couriers on the ground provide an incredible customer experience, but we pride ourselves on our online customer service. Your consumers are able to reach out to our Customer Support Team with any and all enquiries, and they aim to respond in under 5 minutes. 

Next to that we allow consumers to leave notes for our couriers and offer the possibility to alter their delivery date to a time that best suits their busy lifestyle. 

Transforming your local stock:

Utilise our ship-from-store options to leverage your nearby store and inventory for same-day or next-day customer delivery. You can enhance your last-mile logistics and lower your order picking expenses in your distribution centre with our effective and diverse ship-from-store solutions.

In summary, last-mile delivery is a crucial aspect of the supply chain, impacting customer satisfaction and business revenue. While outsourcing has its challenges, the benefits include scalability, enhanced customer experience, efficiency, and increased revenue.

Choosing the right partner is key, and Packaly stands out by addressing environmental concerns with sustainable alternatives, offering a pay-per-parcel cost model, ensuring reliability, and prioritising customer satisfaction. By partnering with Packaly, businesses can transform local stores into efficient fulfilment hubs, providing fast and eco-friendly last-mile delivery options.