We all know the frustration of waiting for an online order, only to find that the parcel does not arrive on time or in the condition expected. Often the only face-to-face contact customers have with an e-commerce company is the delivery driver. 

That final step in the fulfilment process creates a lasting impression on the customer, and regular failures of doorstep deliveries can spell disaster for smaller e-commerce brands. 

The last-mile delivery in fulfilment is a concept that businesses must pay attention to for long-term success and customer retention, but what does it actually involve?

What is last-mile delivery?

Global logistics giant DHL describes last-mile delivery as the final leg in any package's journey. Though not strictly a mile, it is the transport of goods from the local distribution hub to the customer’s doorstep. 

This particular part of a product’s journey is fraught with challenges that make it the most expensive section. According to delivery management experts, the last mile accounts for up to 53 per cent of delivery costs.

With customers shopping online becoming more fickle and less loyal to brands, delivering excellent logistics service is vital to retaining their business. 

Poor shipping experience can be a major turn-off, with up to 85 per cent of customers going elsewhere after having issues with a delivery. 

What are the challenges of last-mile delivery?

KPIs and delivery targets

For delivery drivers, key performance indicators include first-attempt delivery rate, meaning the delivery is completed on the first try, and stops per hour, which measures the speed and number of deliveries. 

Many of these targets are very high, with urban multi-drop drivers tasked with delivering up to 180 packages per shift. In the peak Christmas season, this can increase by 30 per cent, so speed and the ability to deliver on the first try are essential.

Time constraints

Orders that come with specific delivery slots can put increased pressure on drivers to deliver on time, with potential consequences for the business and the customer if time windows are missed. On-time delivery rate is a key performance metric for multi-drop drivers. 

Traffic and street congestion

Being able to stop safely to deliver a parcel is vital but can be very challenging in areas where on-street parking limits the space available. 

Avoiding damage to products 

Throughout the logistics of picking, packing and delivery, a product can go through many hands, and therefore be at risk of damaging the product before it gets to the customer. 

Accidents inevitably happen, but a damaged package can impact reputation, erode customer trust, and result in higher product return rates.

Accurate deliveries

Being able to provide proof of an accurate delivery is also a challenge, especially when a safe place is unavailable or not appropriate for the product. Signatures and photographic evidence add a layer of complexity and increase the time spent on each delivery.

How can packaging choice make last-mile deliveries more efficient?

There are several solutions for improving and optimising last-mile delivery to save your business money and protect your reputation. However, many of the factors involved are in the hands of the logistics company tasked with couriering your product to the customer. 

Solutions such as real-time digital and online tracking, distribution hub management systems, route optimisation, and staff training in customer service are all within the remit of the logistics company. 

Interpersonal skills and route management aside, another way to reduce costs, increase efficiency and retain loyal customers is by changing how you package products. 

Efficiency savings on the last-mile delivery can be made before the product ever leaves your warehouse. Packaging can help make deliveries easier for multi-drop drivers, allowing them to deliver first time, on time almost every time. 

Pricing in Proportion packaging

Pricing in proportion (PIP) packaging is designed to align with Royal Mail sizes and weights, for example, a large letter size. The standardised sizes mean that postage costs are predictable, and they are designed to go through most letterboxes.

Although originally designed for Royal Mail deliveries, PIP is also used by other major couriers. Using PIP for packaging your goods can save money by not over-packaging the product, and therefore it will take up less space on the delivery van. 

Reducing void packing and filler

The product needs protecting during transportation, but many retailers over-use void packaging and use bigger boxes than the product requires. Often this is in an effort to avoid purchasing multiple sizes of postal boxes, but instead delivers a false economy. 

Smaller, lighter parcels will cost less to deliver; the driver will be able to carry them to the doorstep more easily.

Of course, a balance needs to be struck between reducing protective packaging and avoiding damage to the product; foam-lined boxes and bubble bags could be a solution.

Compact packaging

Following on from the previous point, compact packaging that uses the minimum size needed can save on logistical costs for volume and weight, and it is more eco-friendly. 

The best type of compact packaging is letterbox-sized, which removes the need to ring the doorbell and interrupt the customer’s day. Packages can simply be slotted through the front door. 

Packaging materials

Ideally, packaging material should always be lightweight, for the benefit of your budget and for the multi-drop driver. However, they also need to be robust enough to last the distance and resist damage in transit. 

Recycled corrugated cardboard and biodegradable packaging are sustainable and eco-friendly while also being durable enough for the journey.