In the logistics and transportation industry, last-mile delivery is the final step of the delivery process, when a package is delivered to the customer’s doorstep.

Despite being the last step, last-mile delivery plays a crucial role as it directly affects operating costs and customer satisfaction.

Studies show that more than 80% of customers are hesitant to make repeat purchases due to failed deliveries.

This fact underscores the importance of investing in the logistics sector, especially in last-mile delivery services, to sustain the business.

5 Challenges of Last-Mile Delivery

1. High delivery costs

Last-mile delivery is known as one of the most expensive parts of the delivery process. In fact, it can account for 53% or more of total delivery costs.

One of the leading causes is the limited infrastructure that could otherwise facilitate timely delivery.

Other factors, such as failed deliveries, excessively long routes, driver’s fees, and daily operating expenses, also contribute to high costs.

Fierce competition and customer demand for cheaper rates have further aggravated this problem.

2. Delivery route planning

Route planning presents its own challenge in last-mile delivery. There are many aspects to consider, including the driver’s schedule, vehicle specifications, and access to the destination.

This task is difficult to tackle manually. So, technological support, such as logistics or route optimization software, is necessary to ensure delivery routes are designed more efficiently.

3. Lack of real-time tracking

Delivery visibility is an important factor in building customer trust and loyalty. Customers now expect full transparency regarding delivery status, including real-time information on their package location.

Without an adequate tracking system, customers will find it difficult to monitor their packages, which can ultimately undermine their experience and satisfaction.

4. Risk of failed and late deliveries

Failed and late deliveries are more likely to occur in the last-mile stage. Unfortunately, even a single failed delivery can significantly increase operating costs.

Common causes of failed deliveries include recipient unavailability, delivery outside the estimated time of arrival, incorrect address, and technical issues on the ground.

5. Unforeseen circumstances

Many unforeseen events may occur during last-mile delivery, such as traffic congestion, severe weather, or vehicle breakdowns.

To prepare for the unexpected, companies should have contingency plans and ensure good communication between operations teams and customers. This way, problems on the ground can be immediately resolved.

Optimizing Last-Mile Delivery

For a more effective last-mile delivery, you can take the following steps:

• Determine the delivery method that best suits the type of goods and destination.
• Optimize delivery routes by using technology to avoid traffic congestion and inefficient routes.
• Provide a real-time tracking system that allows customers to easily monitor their delivery status.
• Prioritize customer experience by ensuring a smooth and transparent delivery process.

The Role of Technology in Last-Mile Delivery

Technology plays an important role in improving last-mile delivery. Some commonly used technology solutions include:

• A Transportation Management System (TMS) that can efficiently plan and manage delivery routes.
• Tracking devices that can monitor the current location and condition of the package in transit.
• Mobile apps that can facilitate package tracking and direct communication between customers and couriers.

These huge challenges of last-mile delivery show that this service should be taken seriously. An experienced and reliable logistics partner is necessary to ensure that last-mile delivery runs according to plan.

Last-Mile Delivery Solutions by SELOG

For your reliable and efficient last-mile delivery, SELOG is ready to offer solutions as your strategic business partner.

SELOG provides delivery services to the customer’s doorstep, even in hard-to-reach locations, with a fleet consisting of, among others, blind vans and single-rear-axle four-wheel Colt Diesel (CDE) trucks, that cover Jabodetabek and Sumatra.

A business line of PT Serasi Autoraya (SERA) under the Astra Group, SELOG is well-known for its one-stop services.

With over 20 years of experience,SELOG offers comprehensive logistics services, including trucking, shipping, freight forwarding, warehousing, and project cargo.

Every SELOG’s service is supported by Astra Fleet Management Solution (AstraFMS), delivering convenience, efficiency, and cost-effectiveness.

With AstraFMS, SELOG provides comprehensive IT-based solutions for transportation management in Indonesia.

For more information about SELOG’s services, visit www.selog.astra.co.id or contact (021) 26605333.

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