Last-mile delivery is by far the most expensive part of the fulfillment chain, costing an average of $10.1 per package delivered and taking up over HALF OF THE TOTAL OPERATIONAL SHIPPING COSTS. Further pressuring distribution centers, studies that show 80% of customers now demand same-day shipping. An inability to handle this pressure can drain expenses and decrease customer satisfaction. Additionally, these demands aren’t just a recent trend, as they have been growing yearly. Only a few years ago, customers expected to wait up to 10 DAYS FOR DELIVERY, but that number has increased due to the rise of online shopping, with e-commerce giants promising delivery in mere hours. Since customers want faster and cheaper shipping options, businesses must find new ways to streamline the delivery process. Facilities unable to adapt to rising delivery expectations and shipping costs can’t efficiently deliver orders to customers and could eventually damage brand trust.
As we near the busiest season for order fulfillment and logistics teams, industry experts highly encourage businesses to proactively approach the following challenges to avoid high costs and stock surprises.
- Inflation - Due to rising inflation rates at 8% this last year and the massive impact it has on demands, USPS and other major transportation services are announcing price hikes. Cutting down costs to manage price hikes will become essential, but businesses can’t afford to compromise on efficiency in the process. A solution could be to start renting devices that meet your business needs. The right device rental solution can minimize costs while still maintaining supply chain efficiency. Enterprise devices ensure faster, accurate, and on-time orders, all at the right price with a rental solution.
- Labor Shortages - Fortunately for the supply chain, the recent railroad strike has been averted. Despite this good news, the averted strike SHOWCASED THE INCREASING DEMAND FOR TRUCKLOAD CAPACITY out of the nation’s largest freight center. Higher demands due to the strike showcase just how unprepared and fragile the supply chain is. Therefore, businesses should have a comprehensive MDM solution to relieve pressure on IT workers when the supply chain shifts. Experienced MDM support helps reduce the administrative, technical, and logistical challenges faced by businesses using mobile technology.
- Seasonal Onboarding - When peak season starts and demands start to ramp up again, it’s important that logistics teams quickly onboard new hires. FINDING SEASONAL WORKERS IS ALREADY A HARD ENOUGH TASK TO ACCOMPLISH on its own, but the right automation can help accomplish faster onboarding and helpful training. A dependable automation solution should streamline ease of use and be flexible with an ergonomic design and customizable features.
Inflation, labor shortages, and seasonal onboarding can increase demands and already high last-mile delivery costs. Contact us today to learn more about how you can avoid rising supply chain issues and adapt to sudden changes.