Last Mile Delivery

Last Mile Delivery

Secondary or Last mile Transportation :

Secondary transportation is also the last mile delivery to your end customer. From your satellite warehouse or stocking locations to end customer.

The phrase "last mile" was formerly used for the telecommunications field but has since been put on supply chain management. Transporting goods via freight, rail networks and container ships is usually the handiest and cost-effective technique for shipping. In any case, when merchandise gets to a high-capacity freight station or port, they should be transported to their last destination.

This final stop on the supply chain is usually less efficient, comprising around twenty-eight percent in the total cost of goods. It has been referred to as the "last mile problem. The last mile problem can add the challenge of creating deliveries in cities where retailers, restaurants, as well as other merchants in the central business district often give rise to congestion and safety problems.

A related last mile issue is the transportation of merchandise to areas needing humanitarian relief. Aid supplies are often able to reach a central transportation hub within an affected area but can not be distributed because of the damage of natural disaster or possibly a lack of infrastructure.

Below are a couple of issues to take into consideration when drafting your "last mile" strategy :

Distribution centres (DCs) or cross docking - Some distribution distances are typically large and DCs limited. Overnight routes and driver per diems can increase costs and lower truck utilisation. Evaluate the dependence on more DCs along with the role cross docking can begin to play in streamlining distribution processes and reducing cost.

Territory and road infrastructure - Pick up a reasonable comprehension of the road conditions and travel time necessary for delivery. Also, consider seasonality and exactly how the rainy reason will affect your distribution. Road infrastructure and seasonality will even impact your network design.

Delivery process - Determine how long a typically delivery process takes and look at the written guidelines for delivery. It is a good system to make certain checks and balances but provides the potential to create delays on account of committee members not being available.