Last Mile Delivery Trends and Challenges in Singapore
Aug 18, 2020 2:57 PM
Last Mile Delivery Trends and Challenges in Singapore
What is last mile delivery? Last mile delivery refers to the final movement of products from business to consumer. Unlike first mile delivery, which refers to the movement of products from a production facility to a warehouse, middle person or courier managing the deliveries, the last mile involves the consumer and is for many e-commerce businesses the customer’s first and only touchpoint to the product. As such, this last leg of the delivery is extremely important and with growing consumer expectations towards deliveries, it is essential to be aware of the key last mile delivery trends and challenges so that you can improve efficiency in this area and optimise it for your business. Technology is a major factor influencing and reshaping last-mile delivery today and as a technology-driven company that provides a range of last mile delivery services, from on-demand express, same day to next day and 1 - 3 days, Pickupp was given the opportunity to share about "Last Mile Delivery Trends and Challenges in Singapore”alongside other logistics players in the market at the Home Delivery Asia Exhibition in Singapore. If you missed us at the talk, simply read on to find out more!
Key Last Mile Delivery Trends & Challenges
|Key Trends||Key Challenges|
|Free Shipping Movement: More & more consumers are expecting delivery costs to be borne by retailers/e-commerce platforms that they shop from||Delivery prices are constantly being squeezed, resulting in high cost and diminishing business revenue|
|Shorter delivery timeframe and window||The need to develop a delivery/operations network which enables faster deliveries to consumers|
|Same and next day deliveries are favoured, with more consumers willing to pay slight premiums for faster delivery options||Even though consumers are willing to pay slight premiums, how much more is enough to cover cost?|
|More frequent time slots and scheduled deliveries flexible to customers' needs are expected||Can your delivery supply meet customers' requests for delivery at specific time slots?|
|More end-to-end visibility on parcel tracking, from creation of order, to dispatch from warehouse, enrolee and drop-off||Any delays are also monitored and tracked closely|
While the trends and challenges in last mile delivery are aplenty, the future of last mile ultimately boils down to 1 key point: Increasing expectations for cheaper and yet faster deliveries. How then do we stay ahead of the game, meet these expectations and yet maintain profitability?
Last Mile Delivery Solutions
To keep up with the last mile delivery trends and challenges of today, the last mile delivery solution is a software and management system that uses technology to ensure that your deliveries are as efficient as possible.
Let's take a look at the basic solutions that every business needs to optimise your last mile delivery for profitability and the best customer experience: 1. Route Optimisation With customers expecting faster deliveries that meet their schedule, an automatic route optimisation system that determines the most cost-efficient route for deliveries helps you to save time and cost on your deliveries. 2. Real-Time Tracking Having a proper real-time delivery tracking system that gives customers real-time updates of when their parcels are delivered and by whom, and allowing customers to contact the delivery service agents via chat or call if they want to raise an issue. 3. Digital Dashboard One of the key differences between engaging traditional courier companies vs technology-enabled last mile delivery companies is the ability to keep track of all your delivery orders, monitor and manage them efficiently in a single dashboard. Having access to a digital platform will allow a business to identify important metrics such as growth in their delivery sales, the locations of their customer base, on-time rates etc. Instead of sorting through tons of physical data, a dashboard which allows quick filters and exporting of information in an excel format will enable a business to optimise their deliveries efficiently. While many companies in Singapore today still rely heavily on traditional courier services, using pen and paper to manage their deliveries, with the growth of e-commerce and increasing consumer expectations towards faster and flexible deliveries, technology-enabled deliveries are the future.
Here are some unique features Pickupp has adopted as a technology-driven last mile delivery provider to keep up with key trends and overcome challenges:
Route optimisation, real-time 24/7 tracking and a digital dashboard are important and basic features of any technology-driven last mile company, but what makes Pickupp so special?
Pickupp's Last Mile Delivery Services
All in all, Pickupp believes in using technology to solve the last mile delivery problem and give consumers greater delivery convenience at lower cost but faster delivery speeds. With the rise of the gig economy, many consumers are already familiar with the concept of crowdsourcing. Pickupp's crowdsourcing technology connects directly with local couriers who use their own transportation to make deliveries, and also supports our ability to provide on-demand and scheduled deliveries.
Our core products and services – 4-hour on-demand and next day delivery services has enabled many companies to scale their business without breaking the bank. By adopting a 4-hour on-demand timeframe for same day deliveries instead of 1-hour express, Pickupp has been able to keep costs affordable and better fulfil our promise to deliver on time. In fact, we promise a 99% delivery success rate – where missed or late deliveries are rare and exceptional. For businesses that prefer not to have on-demand delivery services, Pickupp provides next-day and 1 – 3 days delivery services as an alternative. In comparison to businesses that only provide 3 - 5 days delivery services, our next day deliveries are faster and will help businesses gain an edge over their competitors. We’ve been delivering for more than 50,000 users across Asia, with a full fledged dashboard and tracking platform for businesses and an on-demand delivery app for consumers who want a fuss-free and convenient way to make ad-hoc delivery orders. Check out our video here to learn what others have to say about our services! To learn more about our services and better understand the strategies you can take to meet your customers' expectations for deliveries and yet ensure that your business remains profitable, you may refer to the following articles: - How can Free Shipping be Profitable? - Same Day or Next Day Delivery, Which is For Me? - Traditional Courier Services vs Technology-Enabled Last Mile Delivery Providers: What is the Difference and Why Does it Matter? Learn more about Shop On Pickupp, our e-commerce platform, here.