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  • Writer's pictureNour Shawky

Six Ways to Cut Last-Mile Delivery Costs

Updated: Oct 19, 2022

As technology advances, consumers are more eager than ever to receive their deliveries from merchants in the shortest amount of time possible, and failure to do so can result in lost sales, costly returns, and reduced profits.

Last-mile deliveries not only present a logistical challenge, but according to one study, they consume approximately 41% of the logistics budget, making them by far the most expensive part of the process. Furthermore, the last-mile operation is the least efficient part of the process, with delivery efficiency accounting for roughly a quarter of all company concerns.

How Can You Lower Your Last-Mile Delivery Costs?

It comes as no surprise that there is a growing demand for a solution to reduce the cost of last-mile delivery.

Before you begin, consider the following six ways it works:

1. Dispatching Solution Automated

When you decide to automate your logistics operations, you can use an automated dispatching solution. This type of system works by connecting the right driver to the delivery when they are in the best location at the best time, reducing the initial wait time before handing off the delivery to the last mile operative.

2. Optimization of Delivery Routes

Using an automated delivery route planner not only provides better-organized delivery solutions, but when route optimization software such as Norma Live is used, you can be certain that a driver's deliveries will be planned in such a way that the least amount of time is required.

Automated route planning not only optimizes based on location, but also takes into account your driver's capacity, the distance you need them to cover, and traffic levels. You can also use real-time updates to notify drivers of changes to their delivery route, ensuring that timeliness is always maintained.

Route optimization software not only allows for more efficient deliveries, but it also helps to reduce costs, streamline processes, and speed up deliveries.

3. Double-Check Your Deliveries

Delivery management software, such as Norma Live, provides more than just faster deliveries; it also allows you to verify your deliveries and obtain proof of delivery and location in case of later disputes. Verification can be done using GPS, timestamps, and the receiver's name.

When using a mobile app to support deliveries, you can also obtain electronic signatures, scan parcel barcodes, and even photograph deliveries. This information is priceless and will aid in lowering the costs of false non-delivery claims.

4. Real-Time Information

One of the most difficult issues that customers face is determining when they must be present to accept delivery. When you automate your last delivery operations, you can avoid this because the software can provide them with real-time delivery updates and parcel tracking so they can be aware of the journey their parcel is taking and when to expect it to arrive. Advanced chatbots can automatically book delivery appointments and link them to routing software.

5. Expand Your Delivery Options

Not everyone wants their package delivered as soon as possible! Most customers would prefer to select a time and date that fits their schedule. The best route optimization software will give you as many delivery options as possible, allowing you to reduce the number of attempted deliveries while increasing consumer satisfaction.

6. Analytics of Real-Time Data

When you choose automated route planning, you can expect to receive advanced analytics and machine learning to help you improve your business offering and customer service. Key data about productivity, deliveries made, and even the time a driver is idle can be discovered, giving you greater control over your last-mile deliveries than ever before.

How can Norma Live assist last-mile delivery companies in achieving greater success?

It goes without saying that using automated route planning will help you improve your last-mile delivery times, but selecting the right system is critical to your success. Norma Live collects information such as warehouse location, fleet capacity, and product specifications in order to plan and arrange the best routes.

Norma Live also employs key business and traffic rules, as well as traffic forecasts and vehicle restrictions, to ensure that every journey is fully optimized every time. Simply put, Norma Live can generate the best plans and routes with a single click of a button.

Below are some facts about what Logistics companies can achieve with Norma Live:  

  • Reduces the number of used vehicles by up to 35% 

  • Reduces the number of miles driven by up to 22% 

  • Reduces the actual driving time by up to 18% 

For more information on how Norma Live can provide similar results to your logistics operations, feel free to request a one-to-one live demo, and one of our experts will be happy to call you back to discuss your requirements in detail. 

Choose Norma Live today and improve your last-mile deliveries for all your customers!

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