Challenges Facing Express Delivery Services in Canada
The worldwide marketplace has been altered by the recent rise of the e-commerce business. Consumers spent $861.02 billion on online buying in 2020, up 44 percent from the previous year, according to Digital Commerce 360.
We’re seeing a shift in consumer desires and expectations as digital marketplaces continue to rise. They’re seeking for low-cost, quick-delivery choices these days. This is true for both digital services and real world goods. We have previously looked at how important it is to find online casino with fast payouts and this demand has only increased.
Improving the last-mile delivery procedure — the stage at which the parcel is delivered to the customer’s home — is the most crucial prerequisite in assuring customer loyalty to online retailers when it comes to shipping logistics. However, last-mile delivery comes with its own set of obstacles and roadblocks.
With the purpose of increasing brand loyalty and consumer happiness, last-mile service should prioritize speed, timely delivery, and accuracy. According to one study, 56 percent of customers will not buy from a company again if they are dissatisfied with the delivery service. At the same time, one of the most time-consuming aspects of the entire e-commerce supply chain is the final mile.
The following are some of the most pressing issues that online businesses face during last-mile delivery.
Products that are late
One of the most significant issues that shipping and delivery companies encounter is this. Businesses pay a high price when they fail to meet established deadlines. Delays in delivery damage a brand’s reputation, increase customer attrition, and have a negative impact on your bottom line. As a result, you’ll need a solid last-mile delivery strategy that allows you to make on-time deliveries. The solution is to develop a technique for route planning and to ensure transparency and seamless communication at all levels.
The most crucial requirement for ensuring client loyalty is visibility into the delivery operations. Buyers want to know exactly where their package is and when it will be delivered.
Some firms have begun to provide tracking tags so that customers may see the status of their orders. However, at an era where technology pervades every part of our lives, tracking codes are no longer sufficient. Customers want real-time tracking information on their packages. They must be present at every stage of the final mile.
Technology that is no longer appropriate
You can monitor the entire last-mile journey, foresee any potential obstacles, and design proactive tactics for coping with them using a GPS tracking system installed in delivery vehicles and the internet of things (IoT).
According to a survey by SOTI, nearly half of the world’s transportation and logistics companies are still using outmoded technologies for last-mile delivery. It doesn’t help much when it comes to dealing with delays and expensive delivery fees.
Delivery charges are extremely high
Customers and businesses both pay a premium for last-mile delivery. Setting up an infrastructure that facilitates timely deliveries can be costly for the latter. Furthermore, shipping and logistics firms must budget for complex routes, missed deliveries, extra stops along the delivery route, driver pay, and fleet maintenance. If a first delivery attempt fails and must be rescheduled, expenses are doubled.
Customers are more likely to abandon their carts when delivery charges are high. These costs can be reduced by increased efficiency and better route planning.
Last-mile distribution has become more efficient as a result of the battle to assure client satisfaction. High efficiency is also necessary for increasing fulfilment capacity. When your procedure is inefficient, you’ll see an increase in late deliveries and dissatisfied consumers, especially when dealing with huge order volumes.
Deploy last-mile delivery software to solve this challenge, which streamlines the procedure from the warehouse to the customer’s doorstep. It allows you to reroute your workers even if your plans alter at the last minute.
Bad route planning
For novices, route planning can be perplexing and difficult due to the numerous elements that must be considered. Delays in deliveries, greater customer irritation, and exorbitant expenses are all consequences of poor route design. This problem can be solved by using an effective scheduling approach. It not only lowers the costs associated with late deliveries, but it also improves the projected arrival time.
Unpredictable circumstances might cause last-mile delivery to be disrupted when a packed commodity is in transit. Some factors are beyond your control, such as traffic, harsh weather, or car problems. To deal with them, you’ll need to devise contingency plans while maintaining constant contact between your staff and with your consumers. You must have a plan of action on hand so that, in the event of an emergency, you can rapidly send the necessary solution.
Last mile delivery has improved massively in the past 2 years in Canada but it still falls short of countries like the USA and UK. The problems associated to poor last mile delivery are clear and have been solved elsewhere. It is now time for Canadian logistics businesses to step up and implement the required changes before large international companies come in and take over.