06.07.2023

Last mile delivery and parcel terminals – keys to customer satisfaction

What is the last mile delivery?

The “last mile” is the final stage of the delivery process, when packages are transported from the distribution hub to the ultimate destination, that is typically a residence, business, or parcel terminal. It’s usually the most challenging part of the delivery process that involves navigating the urban area and dealing with unpredicted circumstances. This stage is crucial in ensuring customer satisfaction as it is the point where customers receive their orders.

The parties involved in the last mile delivery include the logistics company, the delivery personnel, and the parcel recipient. The logistics companies are responsible for organizing the shipping routes and coordinating with the delivery agents. Couriers deliver products to the clients and clients receive the goods and confirm their receipt.

Last mile challenges

Last mile delivery can be a challenging task due to the complex logistic processes and meeting customer expectations. It’s important to understand the key challenges to optimize the last mile processes and avoid customer dissatisfaction and high business expenses. We’ve made research and found out key aspects that may require optimization.

Delivery time and scheduling: Customers always expect quick and smooth shipment of orders. It can be difficult to achieve, especially in a door-to-door delivery model in congested urban areas. Additionally, customers may require specific delivery time that may affect overall delivery performance.

Missed deliveries issue: Failed delivery attempts, when the customer is not present at home, lead to additional expenses. Such situations often require a redelivery attempt or trip back to the warehouse. This results in extra transportation costs and reduced shipment efficiency.

High customer expectations: With the rapid rise of online shopping, customers now expect a high level of service and convenience, including same-day or next-day delivery, package tracking and multiple delivery options. Meeting such expectations can be difficult for businesses with constrained financial resources.

Transportation costs: Last-mile delivery may be pricey for businesses as it frequently requires specialized vans or trucks, to navigate in congested urban areas. Moreover, fuel and maintenance costs can be significant, particularly in companies with large delivery fleets.

Labour costs: Hiring and supervising delivery drivers can be complicated and expensive for businesses, especially as wages and perks rise. Additionally,  managing the last-mile logistics can be difficult and time-consuming, as it involves a lot of resources and expertise.

Parcel lockers – innovative solutions for last mile challenges

Parcel lockers emerged as a solution that optimized shipment  and made the last mile delivery process cost-efficient. Parcel terminals revolutionized the delivery and provided a secure and convenient way for customers to receive their packages. They are changing the last mile delivery process by offering several benefits to reduce missed deliveries and improve customer satisfaction rate. Here’s how parcel lockers face the last mile challenges:

24/7 operation: Customers can pick up their parcels whenever they want as parcel lockers are accessible 24 hours and 7 days per week. It means they can pick up their parcels at their own convenience, without worrying about missing the delivery or waiting for the courier.

Reduced number of missed deliveries: With parcel lockers as alternative delivery points,  clients are able to collect packages whenever it’s convenient for them after couriers leave things at the locker. Delivery drivers  no longer need to make many transportation attempts.

Improved Customer Experience: Parcel lockers offer customers  a more convenient and flexible way to retrieve their packages. Parcel lockers provide customers with a hassle-free delivery experience. Moreover, advanced security features like access with QR codes, customer\courier applications, parcel tracking mechanisms, surveillance cameras make parcel pick up process smooth, easy and save.

Cost optimization: Parcel lockers emerged as cost-effective alternatives for parcel drop off points. They are usually installed at high traffic areas to optimize the delivery routes and reduce expenses on transportation. 

Reduce spends on delivery agents: Door to door delivery is typically time-consuming and costly both for the customer and delivery company. Additionally, there is always a risk of theft or damage to the package during the delivery process. With parcel locker terminals, reduced number of courier staff does not influence the quality of service. Parcel terminals as alternative drop off points is a win to win game for business, couriers, and customers.

The last mile delivery is a critical stage in the delivery process, and its efficiency can have a significant impact on customer satisfaction. Parcel terminals play a vital role in making last mile delivery more cost-effective and convenient for customers, and logistics companies can explore various options to further improve the last mile delivery process. 

We, at Mint Innovations, believe that comprehensive software package is always the key for smooth operation and positive customer experience when using parcel lockers. That’s why we developed LOKO App parcel management system that benefits all parties off last mile delivery. Want to know ho we can help to optimize delivery operations? Contact us and stay tuned for upcoming blog updates!