A recent Economics Times report says that the demand for small warehouses within the city limits is going to rise in the coming years. This is because the demand for same-day delivery of products such as food and grocery items increases rapidly. Therefore, the demand for efficient last-mile delivery has also increased. Now, companies are working to store inventory closer to their buyers to reach them faster to improve the quality of delivery.
This indicates that eCommerce sales are at an all-time high in the country. The lockdown during the COVID-19 pandemic has increased this growth. Companies are now looking to store products in small distribution hubs instead of warehouses. eCommerce sellers are also looking to combine with 3PL providers to optimize operations and improve functioning. This will help the companies improve their last-mile delivery operations.
But how will these 3PL last mile delivery providers help improve last-mile delivery operations? Well, if you look at it from above, fulfillment centers just store, pack and ship your products. But, when you look deeper, their role is much more than that. Having a 3PL provider can accelerate the fulfillment process for your business with streamlined operations and dedicated technology.Â
Let us go into the details about 3PL providers and last-mile delivery operations and how they can improve it. Before that, it is important to understand the specifics of last mile logistics trends.Â
What is Meant by Last Mile Delivery?
Last mile delivery or the last mile shipping refers to the last delivery process that connects the distribution centre to the customer. This includes the part where the delivery executive carries the product to the customer and delivers it.
Even though it is the last mile, the delivery usually takes place from a central hub to the customer’s home. This can be within a few kilometers or go up to a hundred kilometers depending upon the location of the hub and the delivery address.Â
Currently, the last mile sector has not seen considerable intervention with technology. But with changing times and operation techniques in the last mile, delivery operations are also evolving.
The Relevance of Last Mile Logistics Solutions
The last mile logistics process has become an essential component of eCommerce as it decides the final fate of the customer experience. And optimizing last mile logistics solutions can help companies reduce costs and decrease delivery time. Since it is the last leg of the entire eCommerce supply chain operations, it can make or break the whole chain.
Last mile logistics operations are the most affected by factors like traffic, human errors, delayed deliveries, weather, etc. If not done correctly, they can end with a poor customer experience and delayed delivery.Â
Another aspect that significantly impacts last mile operations is the safety of the products. The products need to be shipped in a manner that they remain safe and tamperproof when they reach the customer. Hence they need to be routed in the most optimum method to avoid any mishaps.Â
Key Benefits of Third-Party Logistics Services
If your supply chain distribution is partnered with any third-party service, it can make your business more scalable and cost effective. It can also free you from the complexities of planning and managing a warehousing strategy. Let us explore some of the advantages:
1. Saves on Operational Costs
A 3PL provider can be highly benefited when partnered with third party logistics services as they reduce costs without compromising quality. One major benefit of working with a third-party logistics provider is the savings on expenses of logistics last mile transportation. The access to a broad network of carriers makes 3PL providers negotiate better shipping rates by maintaining industry shipping standards.
2. Experience in Planning and Execution
If you have a 3PL partner, you will have access to warehousing experts who handle your business operations efficiently. These professionals coordinate all aspects of logistics, from transportation and documentation to compliance and best practices. Their experience makes the most of your existing resources to make sure that everything is optimized for the increase in profit. Â
3. Enhanced Supply Chain Management
When the experts are taking care of daily warehousing tasks, your management team can focus on other areas of your business. With decreasing internal resources from warehousing duties, your company can concentrate on other critical aspects of the supply chain. This leads to more efficient and effective overall management.
4. Positioned for Growth and Expansion
When logistics—a key part of the supply chain—is managed effectively, your business can focus on growth. A 3PL partner allows you to respond quickly to seasonal demands and customer orders, setting clear fulfillment goals that they help achieve. They also provide flexibility during unexpected spikes in demand, managing everything from workforce adjustments to transportation needs. Â
5. Proactive Risk Management
A 3PL provider is equipped to handle any disruptions that may occur during the shipping process. With their extensive experience managing challenges, they ensure minimal productivity loss by keeping all stakeholders informed and ready with contingency plans. This quick and effective response to unforeseen situations sets them apart as reliable and valuable partners in logistics management.
6. Optimized Network
A third-party logistics provider focuses on maximizing supply chain output with minimal capital investment. Their wide-reaching network, which includes shipping companies, skilled labor, fleet contractors, and more, creates an interconnected system that helps reduce business operation costs and provides access to reliable supply chain solutions.
7. Enhanced Customer Satisfaction
We all know that the success of any business depends on customer satisfaction. So, it is always important to focus on how customers receive your service. The partnership with a 3PL provider gives timely deliveries that improve customer satisfaction for organic growth and new customers.
