Minimising Last-Mile Delivery Costs

By Michael Supply Chain 0 Comments

Last-Mile Delivery can account for more than 50% of e-Retailers overall transport costs, and most are barely recovering more than 20% of this cost.

You can minimise your Last-Mile costs through these initiatives.

Maximise Vehicle Capacity Utilisation; software to optimise load planning to reduce the number of vehicles, people, mileage.
Use Route-Optimisation Software; calculate best routes in real-time based on prevailing traffic conditions.
Collaborate & Aggregate; share logistics resources with other complementary e-retailers. Eg. Pharma & Grocery, Sports Wear & Sports Equipment
DC Location; locate close to your consumption base, optimise where to store and where to cross-dock.
Vehicle Types; right-fit vehicles will allow optimum loading, agility around the delivery area and minimal running costs.
Metrics & KPI’s; You can’t manage what you don’t measure. Simple KPIs may be “Cost/KM”, “DIFOT”, “Capacity Utilisation”, etc.
Look After Your Drivers; Our most underrated resource, these guys work the hardest, bear most of the customer-facing responsibility, see more and know more about your business than anyone else
Be Agile, Be Very Agile; Don’t commit a strategy long-term. This sector is changing rapidly, and you must be continuously changing

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