Last mile delivery constitutes the handoff from the seller to the customer. As e-commerce supply chain professionals are aware, it has the largest impact on the customer's experience. Also given that it takes place last, its impact is all the more profound because it is the most available in the customer's memory.
Consumers expect a seamless delivery, and these expectations continue to rise. Thus the last mile remains the most challenging link in the supply chain. In research released by SOTI, 59% of transportation and logistics companies in the U.S. said last-mile delivery is the most inefficient process in the entire journey. It's also an expensive link in the supply chain. Reports have estimated that the last leg of product delivery accounts for 53% of total shipping costs. Also, these costs increase with every rescheduled or missed delivery. Efficiency and cost are two primary reasons that companies are looking to deploy innovative technologies like branded calling, to enhance connections with customers and improve the last-mile delivery process.
A recent Capgemini study found that when consumers are satisfied with a company’s delivery services, three-quarters of them will increase spending with that business, and 82% will share their positive delivery experience with friends and family. On the other hand, just under half of dissatisfied customers would stop purchasing from a poor-performing retailer.
Missed deliveries are not just costly in reputation, they are also expensive. Each failed delivery can cost a major retailer anywhere between $100 and $300. To try to reduce missed deliveries, companies have tried to implement calls to customers. However, calls from unrecognized numbers are seldom answered. Research has also found that over half of people prefer a phone call for urgent issues such as late or missing deliveries, incorrect items, or a driver needing directions. But they don't answer calls from numbers they don't recognize.
Branded communication technology is another attempt to solve this problem. This enables the customer to know who is calling and hence improve the likelihood the call is answered. It's a classic example of problem-solving technology and can hopefully greatly reduce inefficiency in the last mile piece of the supply chain.
Source: Supplychainbrain
Image Source: Supply Chain Movement