Five Essentials for Perfecting Last Mile Delivery
Delivery service is a key component in the entire e-commerce supply chain as this is where online meets offline. How good the product may be, it should be delivered well in time, may be before the customer expects? To be precise, in this competitive world, perfect delivery services ensure good customer experience. On the contrary, last mile delivery tends to add cost to your bottom line and eats up the thin profit margins in a competitive e-commerce scenario.
E-commerce sector has seen a rise of new delivery companies coming up every now and then with the promise of delivery service matching business needs. Certain times, these are just false claims and ultimately, e-commerce companies face the consequences in longer run. E-Commerce players must keep in mind to balance the service levels and cost which will enable them in selecting delivery service which is efficient and at the same time, suits their budget.
Read on to know the five criteria based which delivery services can be evaluated and best fit solution can be found for business:
1. Standard of Service
Service standard of a 3PL ensures its reliability and potential. In e-commerce, it is paramount to match customer expectations and any delay in delivery proves damaging for the business. You must research around the service standard of the delivery services offered and check with references before taking a call on any service provider.
2. Experience of Customers
No E-Commerce player can reverse the damage caused by imperfect delivery service. It is important to enhance customer experience, so the add-ons like appearance of delivery boys, behavior and the way customers are greeted; make a lasting impression. Last Mile Delivery service is a variable of how the delivery service providers train delivery boys to be professional in their approach? Same conditions are applicable to the customer care unit of the delivery service provider.
3. Tracking Orders
E-Commerce world can’t thrive without technology, this is a given fact. It is mandatory to have a robust IT infrastructure in place which makes it possible to track each transaction and movement of shipment at any time. Not only order tracking gives customers a feel of control and makes them aware about order status, but it ensures safety of products and reduces the chances of theft and losses.
4. Pricing
Delivery services involve lot of manpower and contributes to significant costs on the balance sheet. Many delivery companies quote low costs while advertising but there are hidden costs too which mount to the total cost. Experts advise E-Commerce companies to do thorough market research and price benchmarking before the deal is finalized.
5. Customization of services
Nature of products involved in any E-Commerce transaction increases the complexities in the Last Mile Delivery. White goods like TV & refrigerators are bulky and need to be handled separately. Similarly, fragile items need special handling to ensure there are no damages in transit. It is important to check if the delivery service provider is capable of offering customized solutions as per the product.
Summary of Evaluation Criteria
| Essential Criterion | Key Focus Areas |
|---|---|
| Standard of Service | 3PL reliability, matching expectations, reference checks. |
| Experience of Customers | Professional approach, behavior, appearance, and customer care. |
| Tracking Orders | Robust IT infrastructure, shipment safety, and real-time status. |
| Pricing | Market research, price benchmarking, and identifying hidden costs. |
| Customization | Bulky goods (white goods) and fragile item handling. |
Organizations must choose best-fit delivery service but not before evaluating them on the basis of factors mentioned above. Experts advise to have multiple delivery partners rather than going along with a single service provider. It is important to retain the customers by providing best possible service as lot of money is spent on customer acquisition.
