What is a Last Mile Delivery Fleet?
Last mile delivery is the final step of a delivery when a product goes from a transport point to its final destination, where the delivery fleet is the means of executing the final stage. The demand for last mile delivery fleets is accelerating at an unprecedented pace putting additional pressure on the world's largest delivery fleets and individual retailers as they move the majority of product offerings on-line with speedy delivery.
When it comes to individual retailers, the ability to provide best-in-class delivery service has become increasingly important since the retailers own the initial customer purchase. If the retailer falls short on delivery expectations, they run the risk of losing the customer.
As a result, the last mile ecosystem itself is also rapidly growing as companies must leverage technology, software partners, and all possible delivery fleet services to meet high customer expectations. With roughly 40% of logistics costs being spent on last mile, it is even more important for delivery fleets to execute last mile delivery with success.
Challenges for Last Mile Delivery Fleets
Last mile delivery fleets face similar challenges to other commercial fleets, yet with added customer demands, delivery time logistics, delivery status, vehicle uptime, and driver safety concerns. With a growing need for strategic planning, last mile logistics and last mile delivery software are crucial for executing and measuring core KPIs.
Of these challenges, driver management and safety has become a top concern for last mile fleet operators. Industry trends and research are continuing to make clear that managing the drivers behind last mile delivery fleets is a growing challenge. For fleet safety operators, mitigating risky driving behaviors including distracted driving and speeding has become essential for last mile operations. For the smaller individual last mile service providers a single accident can result in a catastrophic financial impact on the business.
Supply Chain Concerns for Last Mile Delivery Fleets
Operations and logistics of last mile delivery fleets are often exposed to and affected by global supply chain issues. With the supply chain disruptions caused by the Covid-19 pandemic, there is an even greater focus today on the steps providers and users can take to help ensure seamless customer experience. A multitude of supply chain bottlenecks have affected buyer-supplier relations, with longer delivery times being one of the most pressing issues.
As a result, delivery fleet drivers have felt the pressure in efforts to reduce delivery time. Ongoing supply chain issues not only have affected logistics, management and efficiency of last mile delivery, but also affected driver safety in turn as well. With more pressure than ever on delivery fleet drivers to help operate efficiently and on time, the focus on driver safety and preventing distracted driving is more important than ever before.
Key Success Factors for Last Mile Delivery Fleets
There are many factors that can contribute to helping delivery fleets execute last mile delivery cost-effectively, safely and efficiently, with technology and driver safety leading the way. With that said, core KPIs for delivery fleet success are tied to productivity, customer satisfaction and cost/revenue. Combined delivery fleet management solutions are necessary for managing impact to customers, fleet operations and driver safety. Key success factors include:
- Sequenced and optimized routes to reduce last mile delivery time for on-time deliveries
- Cost per mile and cost per mile optimization
- Enforced safety policies and driver safety measures to mitigate risk associated with last mile delivery fleets
- Data insights to validate operations and safety is actually improving as solutions are implemented.
Delivery Fleet Safety: Why is it so Important?
Fleet delivery drivers are essential to last mile delivery success. Technology including commercial navigation, route optimization software, video monitoring and telematics do not provide proactive, real-time driver safety and crash risk mitigation in real-time. With driver management at the forefront of delivery fleet success, ensuring driver safety and mitigating risk for cost maintenance as a core last mile KPI is essential.
#1 Cause of Auto
Insurance studies indicate that distracted driving is the #1 cause of vehicle collisions.
Litigation and nuclear verdicts in excess of $10 million are becoming more common.
Nearly 40% of workplace-related fatalities involved transportation incidents.
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