Choosing the Right Logistics Partner for Your Final Mile Delivery
It’s no secret that the world of delivery logistics is a marketplace driven by ever-increasing customer expectations for speedy, reliable results. Gone are the days of multi-day or even week-long waits for products, as next-day or even same-day shipping have become the new norm for baseline expectations. Although these kinds of demands are most strongly felt in companies delivering directly to individual online shoppers, the increasing demand for speed and efficiency reverberates throughout the 3PL industry.
In light of this, it’s easy to understand the importance of final mile delivery, which is not only the most complicated stage of shipping, but also accounts for around 53% of total shipping costs. Logically, choosing the right company to handle your FMD needs is critical for any enterprise in the line of delivery. This article will lay out the most important factors to consider when choosing the right 3PL to meet your FMD needs.
"Gone are the days of multi-day or even week-long waits for products, as next-day or even same-day shipping have become the new norm for baseline expectations."
Technology
Ultimately, efficient, reliable final mile delivery is reliant on strong TMS technology, from key logistical features such as managing freight and trucking lines to quality-of-life features for customers such as delivery tracking.
Good route-planning technology saves on shipping costs and decreases delivery time. Accurate reporting tech is necessary for building good data to identify weaknesses and flaws in a system. Accurate proof of delivery systems create a paper trail if something goes wrong, and is increasingly a baseline expectation in customers.
While there are many critical qualities to consider in choosing a 3PL, many of those qualities will ultimately depend on any given 3PL having the technology and resources necessary to back them up.
Speed & Route Optimization
We’ve mentioned that final mile delivery is generally the most complicated and costly part of any business involved in shipping. Deliveries to rural areas must find efficient routes between destinations that tend to be spaced widely apart, while deliveries in urban areas must contend with unpredictable traffic conditions, road closures, and the like.
"If your business is making several deliveries a day, quick, cost-efficient delivery is an absolute must."
When looking at potential 3PL partners, ask how they optimize their delivery routes, and be especially careful of any company that relies on LTL providers for their final mile deliveries. While LTL options are great for linehaul trucking, they are not usually an efficient choice for the final mile, so seek out companies with a dedicated last mile carrier.
Coverage
Consider the needs of your business - if you make deliveries across the nation, partnering with several regional 3PL companies is simply inefficient. Likewise, if your business only operates on the local or regional level, a 3PL company that knows and specializes in your area might be preferable.
Keeping Pace with Industry Trends
As technology evolves, so too do the standards of logistics companies and the expectations of their customers. Here are just some of the features you should consider and look for when deciding on a 3PL company:
- Returns Management: It’s a reality that online retail faces a returns rate that’s more than double that of brick and mortar stores (20% compared to 9%). While getting packages delivered quickly and accurately is doubtless the most important goal of a 3PL, a good company must also be capable of efficient returns.
- Returns Management: It’s a reality that online retail faces a returns rate that’s more than double that of brick and mortar stores (20% compared to 9%). While getting packages delivered quickly and accurately is doubtless the most important goal of a 3PL, a good company must also be capable of efficient returns.
- Micro Warehousing: More and more companies are following Amazon’s example by establishing small warehouses across the nation (Amazon has 58 different transport hubs). Spreading warehousing needs across a wider area makes overnight or same-day deliveries much easier to handle efficiently.
- Increased Traceability: Transparency is the name of the game, and most modern customers expect to be able to track their packages in real-time.
Quality of Service
Although the company handling your last-mile delivery is technically not a part of your business, your customers will inevitably associate their delivery experience with your brand. An unreliable company that delivers late, looks unprofessional, is rude to customers, or who fails to adequately perform their duties will damage both your bottom line and future returns by tarnishing your good reputation.
"When looking at 3PL companies, ensure they meet the standards you hold your own company to."
Trust Industry Leaders
When it comes to providing top-notch logistics, shipping, and warehousing services, there’s no name that beats out PCC Logistics. With 2 million square feet of warehouse space and ports along the West Coast, we receive products from around the world and send them reliably where they need to go.
With over 30 years in the business, access to cutting edge technology, and a lasting commitment to service and client satisfaction, PCC Logistics is the premier choice for shipping along the West Coast. Don’t hesitate to contact us today to ask about how we can improve your next shipping experience.
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