How to Improve Last-Mile Delivery Tracking: A Comprehensive Guide

With the evolving e-commerce industry and the surge in online shoppers, customer expectations for prompt deliveries are increasing. Consequently, there is a growing need to optimize the last-mile delivery tracking experience.

Notably, 41% of consumers are willing to pay for same-day delivery, with 24% even ready to pay for a specific one—or two-hour delivery window. This willingness clearly shows the necessity of improvising the final leg of the supply chain, often referred to as the last mile.

The final mile is the most crucial, complex, and expensive delivery process. However, 61% of North American retailers think last-mile delivery tracking operations are ineffective.

To address these complexities and inefficiencies, this comprehensive guide will present the essential strategies and innovative technologies to revolutionize last-mile delivery tracking in 2024, ensuring greater efficiency, enhancing customer satisfaction, and attaining operational excellence in the final leg of their delivery process.

Introduction to Last-Mile Delivery Tracking

Last-mile delivery tracking refers to monitoring the final stage of a package’s journey from the fulfillment center to the customer’s doorstep. This phase is critical because it directly impacts customer satisfaction and delivery efficiency. It involves real-time updates on the package’s status, providing transparency and ensuring that customers are informed throughout the delivery process.

The Importance of Last Mile Delivery Tracking

Understanding why last-mile delivery tracking is crucial can help businesses enhance their logistics operations, improve customer satisfaction, and maintain a competitive edge. 

Benefits of Efficient Tracking

Below are the business benefits of efficient final mile delivery tracking: 

1. Increased customer satisfaction

• Customers value accurate estimated time of arrivals (ETAs). Effective last-mile delivery tracking allows businesses to provide precise delivery windows, reducing the frustration of waiting for packages.
• Real-time tracking software provides customers with up-to-date information on the status of their deliveries. Knowing the exact location and expected arrival time of their packages reassures customers and builds trust.
• Tracking systems often include features for capturing proof of delivery, such as electronic signatures, photos, or notes. This ensures that deliveries are made correctly and provides a record to resolve potential disputes, making them effective electronic proof of delivery solutions.

2. Operational efficiency

• Real-time tracking alerts businesses to any potential delays or issues during delivery. This allows prompt action, such as rerouting drivers or addressing vehicle breakdowns, to ensure that deliveries remain on schedule.
• Tracking systems collect valuable data on delivery operations. Analyzing this data helps businesses identify patterns, optimize routes, predict demand, and make informed decisions to improve logistics performance.
• Real-time tracking allows businesses to monitor driver behavior and their performance. This ensures that drivers adhere to safety and service standards, reducing the risk of accidents and improving delivery reliability.

3. Cost Effectiveness

• Advanced tracking systems utilize GPS tracking and advanced routing algorithms to plan the most efficient and dynamic delivery routes. This minimizes fuel consumption, reduces travel time, and lowers vehicle maintenance costs.
• Tracking helps ensure that deliveries are made on the first attempt. By providing real-time updates and allowing for customer interactions, businesses can reduce the number of failed delivery attempts, which are costly and time-consuming.

Key Trends Affecting Last-Mile Logistics

The trends that are reshaping last-mile logistics and are impacting businesses to manage and optimize the final stage of the delivery process are:

1. E-Commerce Expansion

The expanding e-commerce market continues to drive significant changes in final mile delivery logistics. With more consumers shopping online, there’s a higher demand for fast, reliable, and convenient delivery services.

2. Demand for speedier deliveries

Consumers increasingly expect faster delivery options, including same-day and on-demand delivery services (as fulfilled by Amazon). This trend is motivating logistics providers to streamline their operations and invest in technologies that enable quicker order fulfillment and delivery.

3. Urban Challenges

The ongoing trend of urbanization and increasing population density in urban areas pose unique challenges for last-mile logistics. Logistics companies are exploring innovative solutions, such as micro-fulfillment centers and alternative delivery methods, to navigate congested urban environments more efficiently.

4. Sustainability Demands

There’s a growing awareness and demand for sustainable and eco-friendly delivery practices. Customers expect businesses to reduce carbon emissions by optimizing delivery routes using last-mile delivery route optimization software, employing electric vehicles, and implementing sustainable packaging solutions.

5. Tech Innovations

Automation technologies, including drones, robots, and autonomous vehicles, are being increasingly adopted to automate and streamline last-mile delivery operations. These technologies enhance efficiency, reduce costs, and enable faster deliveries, especially in densely populated urban areas.

6. Contactless delivery: 

The COVID-19 pandemic has accelerated the adoption of contactless delivery methods to minimize physical contact between delivery personnel and customers. Contactless delivery options, such as smart parcel lockers and doorstep delivery without signatures, have become more prevalent and are likely to remain popular even post-pandemic.

7. Data analytics and predictive analytics: 

Advanced data analytics and predictive analytics technologies are being leveraged to optimize last-mile logistics operations. Businesses can make informed decisions, optimize routes, and improve delivery efficiency by analyzing vast amounts of data, including historical delivery data, traffic patterns, and customer behavior.

8. Customer expectations for visibility and transparency: 

Customers expect real-time visibility and transparency throughout the delivery process. They want to track their orders in real time, receive accurate delivery updates, and have the flexibility to reroute or reschedule deliveries as needed. Meeting these expectations requires robust tracking systems and clear communication channels.

Best Practices for Improving Last-Mile Delivery Tracking

To enhance last-mile logistics, businesses must adopt strategic approaches and innovative technologies. Here are some effective strategies:

1. Implementing advanced tracking systems

Real-time GPS

Real-time tracking systems utilizing GPS and IoT devices are crucial for maintaining transparency in the delivery process. These technologies allow businesses to monitor the exact location of their delivery vehicles and packages.

Package scanning technologies

These technologies involve using barcodes, QR codes, and mobile-friendly scanners to scan packages, determine their accurate locations, and adjust routes dynamically to prevent traffic.

2. Utilizing route optimization software

Features to look for:

Route-optimizing software integrated with artificial intelligence (AI) and machine learning (ML) algorithms should allow you to adjust delivery routes in real time. It optimizes the routes based on current conditions and new delivery requests, helping to avoid unexpected delays and ensure timely deliveries.

This flexibility is particularly useful in urban areas with unpredictable traffic conditions. This optimization reduces travel time and fuel consumption, leading to cost savings and faster deliveries.

Integration Tips:

Integrate your route planning software with different business systems, such as CRM, ERP, order management software, or invoicing software to facilitate easy exchange of information across them and streamline delivery operations to enhance your efficiency.

3. Technology enabled solutions

Investing in autonomous delivery solutions like drones and robots can significantly speed up the process, especially in densely populated urban areas or remote locations. 

These technologies can bypass traffic congestion and reduce dependence on human labor, lowering operational costs. Self-driving delivery vans and trucks is another solution to operate round the clock without breaking, increasing the efficiency and reliability of last-mile deliveries.

4. Enhancing customer communication

Automated Updates:

Keeping customers informed with real-time updates on their delivery status is essential for enhancing their experience. This can be achieved through SMS alerts, email notifications, or app notifications that provide information on the current location of their package and the estimated delivery time.

Customer feedback: 

Integrating feedback collection software or setting up an email with a feedback form for customers to fill out after a delivery is complete can help you know your customers’ delivery experience. This can not only help your customers understand you value their opinion but also implement feasible suggestions to make your delivery customer-centric.

5. Embracing sustainable practices:

Eco-efficient vehicles

Transitioning to electric delivery vehicles helps reduce carbon emissions and comply with environmental regulations. This shift not only supports sustainability goals but also can appeal to environmentally conscious consumers.

Energy-efficient warehousing 

Implementing energy-saving equipment such as battery-powered forklifts, switching to LED lighting, performing periodic evaluations, and making your warehouse layout energy-efficient by ensuring the one-sided flow of goods can help enhance warehouse efficiency.

6. Leverage data analytics:

Collecting and analyzing data on delivery operations helps businesses identify inefficiencies, optimize routes, and predict demand. These insights enable continuous improvement in logistics processes and strategic decision-making.

7. Install smart automated lockers: 

Installing automated lockers in convenient locations allows customers to retrieve their packages conveniently. These lockers can be accessed using a unique code sent to the customer, ensuring a secure and contactless delivery process.

By embracing these strategies and staying abreast of industry trends, businesses can transform their last-mile delivery operations, achieving greater efficiency, reducing costs, and enhancing customer satisfaction. 

How Upper Can Transform Your Last-Mile Operations

Upper last-mile delivery route scheduling software offers a comprehensive suite of tools to optimize, automate, and personalize your last-mile delivery process, ensuring efficient and customer-centric operations.

Key Features of Upper’s Solutions

• AI-powered dynamic route optimization: Upper’s AI-based algorithms analyze real-time data to suggest the most optimal delivery routes, enhancing efficiency.
• Automated order allocation and dispatching: Streamline your last-mile delivery with intelligent order assignment and progress tracking.
• Real-time visibility: Gain complete visibility into your delivery network with real-time tracking of drivers, packages, and delivery statuses.
• Proactive communication: Keep customers informed with automated notifications and estimated delivery times, enhancing their delivery experience.
• Flexible delivery options: Dynamic routing and flexible scheduling enable flexible delivery choices, including same-day and next-day deliveries.
• Live delivery tracking: Provide branded tracking applications with electronic proof of delivery for real-time monitoring of deliveries.
• Data-driven decisions: Leverage comprehensive reports and dashboards to gain insights into delivery performance and make data-driven improvements.

Customer Testimonials

Eco Medical, a prominent supplier of mobility aids and wheelchairs, helped achieve 100% digitization and 82% increase in overall productivity. 

“Our drivers often ended up at the same stop, causing frustration for both us and our clients. Manual route planning was a time-consuming process, and we lacked the ability to provide real-time updates. It was clear we needed a solution that would streamline our delivery operations.”

Shane YoungShane Young

Supervisor Shipping and Receiving at Eco Medical

Founded in 2015, Northern Express Logistics is a transportation company that specializes in domestic and cross-border dry, temperature-controlled, and hazardous freight shipping. Since implementing Upper, it has been able to increase deliveries by u to 200% and automate up to 92% in route planning and optimization. 

“Upper’s live tracking feature has transformed the way we manage our delivery operations. With real-time visibility into driver locations, we can proactively respond to delays and ensure timely deliveries, enhancing overall transparency and customer satisfaction.”

Kam Kendell

Northern Express Logistics

Conclusion

Final Thoughts on Optimize Last-Mile Delivery Tracking

Mastering last-mile delivery tracking is imperative in today’s e-commerce business industry. By implementing the essential strategies outlined in this guide, businesses can enhance efficiency, reduce costs, and elevate customer satisfaction. 

Embracing innovative technologies and staying abreast of industry trends is key to staying ahead in the competitive delivery market. Start optimizing your last-mile logistics with Upper’s 7 days FREE trial today and revolutionize your last-mile carrier operations.