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Question 2

study below and answer the following questions:
Read the case

Last-Mile Delivery Affected the Brands.

Skylar Ross, March 2021

The recent growth of the e-commerce industry has transformed the global marketplace.
According to Digital Commerce 360, consumers spent $861.02 billion on online shopping
in 2020, a 44% rise over the prior year. As digital marketplaces continue to grow, we’re
witnessing a shift in consumers’ demands and expectations. Today they’re looking for
cost-effective yet quick delivery options. When it comes to shipping logistics, improving
the last-mile delivery process — the stage at which the parcel is delivered to the
customer’s doorstep — is the most critical prerequisite in ensuring customer loyalty to
online stores. But last mile-delivery service comes with its own set of challenges and
hurdles.
According
to a report by SOTI Inc., more than 61% of logistics companies agree that last-
mile delivery is the most inefficient process in the entire supply chain. So let’s review the
most significant challenges affecting last-mile delivery, and how they can be solved to gain
a competitive edge in the digital marketplace. Last-mile service should emphasize speed,
timely delivery and accuracy, with the goal of improving brand loyalty and customer

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satisfaction. One study finds that 56% of shoppers won’t buy from a brand again if they’re
not satisfied with the shipping service. At the same time, the last mile represents one of
the most time-consuming and expensive elements of the entire e-commerce supply chain.
Research suggests that it accounts for more than 53% of total shipping costs.

Some critical challenges that arise during last-mile delivery for online retailers.

Visibility into the delivery processes is the most important prerequisite for ensuring
customer loyalty. Buyers want complete knowledge of the location of their package and
when it will reach them. Some businesses have begun offering tracking codes to gain
visibility of delivery status. But in an age where technology rules every aspect of our lives,
tracking codes aren’t enough. Customers demand real-time information on a package’s
location. They need to witness every step of the last-mile process. To offer increased
transparency into last-mile delivery, sign up for delivery management software that offers
real-time status. This allows your customers to track packages all the way to the doorstep.

Last-mile delivery tends to get expensive for both customers and the business. For the
latter, setting up an infrastructure that supports timely deliveries can be costly. In
addition, shipping and logistics companies must allocate money for complex routes, failed
deliveries, extra stops along the delivery route, drivers’ salaries, and fleet operation. And
costs are doubled if a first delivery attempt fails and must be rescheduled. For customers,
high delivery costs lead to an increase in cart abandonment rates. Research shows that
55% of customers abandon their shopping carts if presented with an extra shipping cost.
Higher efficiency and better route planning can lower those expenses.

Another biggest challenges that shipping and delivery companies face is late delivery. The
inability to stick to predetermined timelines gets expensive for businesses. Delivery delays
harm a brand’s reputation, increase customer churn, and affects your bottom line.
Therefore, you need a robust last-mile delivery plan that helps you make timely deliveries.
The solution lies in creating a route-planning method, and ensuring transparency and
seamless communication at all levels.

A report by SOTI finds that nearly half of global transportation and logistics companies
use outdated technology for last-mile delivery. It offers little help in combatting delays
and high shipping costs. But with a GPS tracking system installed in delivery vehicles,
coupled with the use of the internet of things (IoT), you can monitor the entire last-mile
journey, predict any potential hurdles, and devise proactive strategies for dealing with
them.

The struggle to ensure customer satisfaction drives the increased efficiency of last-mile
delivery. High levels of efficiency are also crucial for boosting fulfilment capacities. If your
process lacks efficiency, you experience a rise in delayed deliveries and frustrated
customers, especially when handling large order volumes.

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To solve this problem, deploy last-mile delivery software that streamlines the process
from the warehouse to customer’s doorstep. It allows for rerouting of your workforce even
in the case of last-minute changes in plan.

For beginners, route planning can be confusing and challenging, consisting of multiple
variables that must be taken into account. Ineffective route planning leads to delayed
deliveries, increased customer frustration, and high costs. You can solve this challenge
with effective route optimization. It not only reduces costs incurred by late deliveries, but
also has a positive impact on estimated time of arrival. When a packaged good is in
transit, unpredictable situations can disrupt last-mile delivery. Traffic, bad weather, or
vehicle issues are among the elements that are out of your control. To address them, you
need to create contingency plans while ensuring seamless communication among your
teams and with customers. You need to have a plan of action at hand, so when
encountering an adverse situation, you’re able to dispatch the required solution quickly.

Implementing efficient last-mile delivery processes offers e-commerce brands an

invaluable opportunity to adapt to changing customer demands and differentiate their
offerings from the competition. Those desiring to succeed with an online store need to
confront last-mile delivery challenges proactively. And that requires the right technology,
complete transparency, and smooth communications between the delivery team and your
customers.

(c) Suggest TWO (2) strategies that ecommerce platform can do better with Last-Mile
Delivery in improving the brand reputation.
(10 marks)

Expert Answer

This solution was written by a subject matter expert. It's designed to help students like
you learn core concepts.

Step-by-step

1st step
All steps
Answer only
Step 1/2

Introduction:

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Due to customer desire for quick, affordable, and on-time delivery choices, last-mile
delivery has emerged as a crucial component of the e-commerce sector. In order to ensure
consumer pleasure and brand loyalty, the last-mile delivery procedure is essential, but it
also has its own set of difficulties and difficulties.

Explanation for step 1

We'll go over two tactics in this post that e-commerce platforms may use to streamline
last-mile deliveries and build their brand's reputation.

Step 2/2
The following are TWO last-mile delivery tactics that an e-commerce platform may
implement more effectively to boost brand reputation:

1. Implement delivery management and real-time tracking

software:

It is crucial to have visibility into the delivery process if you want to guarantee client
loyalty and happiness.
Customers expect to follow every stage of the last-mile delivery process and want
real-time updates on the whereabouts of their packages.
Customers may follow packages all the way to their home by using real-time
tracking software that can be implemented on e-commerce platforms.
Customers will be more satisfied, and the brand's reputation will improve as a result
of the enhanced transparency in last-mile delivery.

2. Implement efficient route optimization and streamline the last-

mile delivery process:

The last-mile delivery industry faces tough obstacles like late deliveries, expensive
deliveries, and inefficiency.
E-commerce platforms may optimise their routes and streamline their last-mile
delivery processes to speed up deliveries and cut expenses.
E-commerce platforms may assure prompt and effective deliveries by using last-
mile delivery software that simplifies the process from the warehouse to the client's
doorstep.
This will increase customer happiness and boost the brand's reputation.

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 Explanation for step 2

To respond to shifting consumer needs and set themselves apart from the competition, e-
commerce platforms must aggressively address last-mile delivery issues. E-commerce
platforms may increase their brand reputation and consumer happiness by integrating
real-time tracking and delivery management software, optimising last-mile delivery
procedures, and implementing efficient route optimization. E-commerce platforms may
be successful in their last-mile delivery operations with the correct technology, total
transparency, and easy communication between the delivery personnel and consumers.

Final answer

In conclusion, real-time tracking and delivery management software and streamlining

last-mile delivery process through effective route optimization are crucial for ensuring
customer satisfaction and enhancing the reputation of e-commerce platforms. By
providing visibility into the delivery process and ensuring timely and efficient deliveries,
e-commerce platforms can improve customer satisfaction and establish a positive brand
image. Implementing these strategies can lead to increased customer loyalty and overall
growth for the business.

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