Blog | [Infographic] Why is the Last Mile So Expensive?

Blog | [Infographic] Why is the Last Mile So Expensive?

Customer expectations have skrocketed and fulfilling last mile deliveries in the most efficient way is a question a lot of brands are trying to answer. In the entire delivery chain, last mile delivery constitutes 53% of the total cost which is huge!

 

Working with 200+ enterprise customers of 50+ countries, we encounter several reasons for this. Some of the major ones are:
 

  1. Failed Deliveries: According to our survey with 200+ enterprise customers, 15% of all orders don’t get delivered in the first attempt owing to several reasons ranging from customer not being available at home to a delivery vehicle breakdown to incorrect product getting delivered.
  2. Inefficient Routing: With thousands of orders every month and a fixed number of delivery drivers available, it is critical that  orders are delivered in the most efficient manner. Upto 20% of cost can be reduced just by utilizing the best route optimization technology.
  3. Customer Expectation: Over the past few years, customer expectations have been growing significantly and brands have been one upping the other in terms of providing a great delivery experience.
  4. Delivery Driver Shortage: Another issue we continuously face is regarding delivery driver management. The requirement for drivers is increasing at a pace higher than there is supply and this will necessitate brands to best utilize the available resources.
  5.  

 

To consume all these reasons and the solutions for them, we’ve come up with a detailed infographic to help you in navigating the last mile, read on:

 

 

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