Understanding Last-Mile Visibility: Challenges and Solutions

The booming era of e-commerce has reshaped how we shop, with online shoppers now expecting transparency and quick delivery of their orders. Recent OnTrac research indicates that most online shoppers expect to receive their deliveries in two days or less. 

However, the “last mile” leg of delivery is the most complex and prone to delays. According to Project 44, over two-thirds of last-mile delivery complaints are related to shipment delays (24.8%), missing goods (22.4%), and damaged items (20.9%).

This is where the concept of last-mile visibility comes into play. 

Last-mile visibility refers to the ability to track a shipment’s status and location in real time from the last-leg of transit to final delivery. 

So, if you want to effectively implement last-mile visibility to meet the heightened expectations of today’s consumers, keep reading.

This blog will explore key facets of last-mile visibility, from understanding the concept to overcoming last-mile challenges. 

Introduction to Last-Mile Visibility

What is last-mile visibility?

Last-mile visibility refers to the real-time tracking and monitoring of a shipment’s journey in the final leg of delivery, as it moves from a distribution hub or facility to the final customer destination.

Essentially, it acts as the “GPS” for the last mile of the supply chain, which is often the most complex part of the delivery process. It deals with challenges such as narrow delivery windows, traffic congestion, individual home deliveries, fragmented pickup points, and high expectations of customers to stay in the loop about their order status.

Want to know how it works?

Last-mile visibility solutions leverage technology like GPS integrated with supply chain management software and predictive analytics.

The result?

Actionable, real-time data that helps with clear shipment statuses, route mapping, predictive ETAs, and delivery confirmations relayed digitally. 

This powers effective planning, decision-making, and communication across the last-mile supply chain.

Challenges in Last-Mile Delivery

Getting a shipment from the final distribution hub to an individual customer’s doorstep tends to be complicated. Like, really complicated. 

So, what makes the last mile so tricky to manage?

Let’s explore some common challenges involved in last-mile delivery that impact key metrics:

1. Delivery delays

Rush hour traffic jams making your route take way longer than planned? Driver called in sick with no backup? Can’t find the customer’s house number? 

Whether it’s congestion, dependency on third parties, or address issues, delays happen way too often in the last mile. These delays can disrupt carefully planned schedules, leading to missed delivery windows and customer dissatisfaction.

2. High operational costs

Last-mile delivery is infamous for being the most expensive leg of the supply chain journey. 

Rising fuel costs, labor expenses, and vehicle maintenance contribute to the high operational costs associated with this phase. This puts a strain on the overall profitability of the last-mile process. 

Ever notice delivery trucks driving around like they’re lost? Those wasted miles = boatloads of extra gas and time = goodbye profits

3. Customer experience issues

Tell the truth…do you get annoyed when your food delivery app doesn’t provide accurate delivery updates? 

Pretty much, yes, right? 

Well, customers feel the same about parcel deliveries!

Instances of unclear communication, late deliveries, and a lack of transparency in tracking can significantly impact customer satisfaction. 

Maintaining a positive customer experience becomes challenging when visibility into the delivery process is compromised.

4. Handling volume spikes

The holidays are great for sales until you see a huge spike in shipments and deliveries. 

How do you handle 5x the everyday volume with the same resources? 

Fluctuations in order volumes, particularly during peak seasons or promotional events, pose a significant challenge for last-mile delivery providers. 

Rapidly scaling up operations to handle sudden spikes in demand requires strategic planning and flexible logistics solutions.

5. Limited delivery insights

It’s kind of hard to fix things when you’re wearing a blindfold! No real-time data on fleet routes and status makes improving service tough.

A lack of real-time visibility into the last-mile delivery process hampers your ability to address issues promptly. 

Without comprehensive insights, you may struggle to optimize delivery routes, forecast demand accurately, and enhance overall delivery performance.

Effective Solutions for Last-Mile Challenges

Addressing the challenges of last-mile delivery requires a strategic approach.

Innovative problems need innovative solutions, don’t you think? 

So, to address the last-mile visibility challenges, we need innovative last-mile solutions to enhance visibility, optimize operations, and ultimately improve customer satisfaction.

Here are key solutions to overcome the challenges of last-mile delivery:

1. Implementing real-time tracking

By implementing real-time tracking and mapping technology you can track the exact location of delivery in real-time. Route optimization solutions like Upper provide integrated driver visibility through a GPS tracking software.

As a delivery operator, having 24/7 real-time visibility over your fleet allows your dispatch team to guide routes in real time using Upper. It’ll help them make proactive decision-making in response to unexpected delays or issues.

Additionally, Upper’s driver visibility empowers you to relay accurate delivery times directly to recipients through automated customer notifications. 

This level of responsiveness and communication is a competitive differentiator that clients will pay premium pricing for.

2. Optimizing routes

Routing delivery fleets isn’t just about going from point A to point B. The path in between matters when tiny traffic jams balloon delivery times.

Also, in a low-margin business, reducing every unnecessary mile driven has an exponential impact on profitability. 

Route optimization technology, like Upper, specializes in determining the most efficient delivery sequences and routes possible. This enables the delivery driver to bypass congestion and minimize fuel costs too.

Investing in Upper almost guarantees a quick ROI through fuel savings alone. Also, saving miles and minutes adds up to happier customers in the long run.

3. Predictive analytics for volume

You don’t have to be a fortune teller to forecast upcoming order volumes! 

Predictive visibility algorithms can decode seasonal peaks and past trends to predict the future.

By understanding patterns in order volumes, businesses can proactively plan for peak times, allocate resources efficiently, and ensure that the last-mile logistics network is equipped to handle fluctuations in demand. 

Preparing ahead of time prevents supply chain bottlenecks and unnecessary delays during high-demand periods.

4. Integrating inventory alerts

One of the worst feelings for a business is seeing customers walk away empty-handed due to unavailable stock.

Integrating last-mile delivery systems with inventory management systems provides real-time insights into stock levels. 

Automated restock alerts ensure that delivery vehicles are adequately stocked with products, preventing potential delays caused by insufficient inventory. This integration reduces the likelihood of missed deliveries due to product unavailability.

5. Monitoring driver performance

Safety first, safety second, safety always!

Monitoring driver behavior through telematics and analytics helps businesses ensure that their delivery teams are operating efficiently and safely. 

Onboard sensors monitoring acceleration or unsafe cornering will help you guide your drivers’ driving habits positively.

Insights into driving habits, fuel consumption, and vehicle maintenance needs will allow you to optimize routes, reduce operational costs, and enhance the overall performance of your last-mile delivery fleet.

Essential Benefits of Last-Mile Visibility

Running a logistics operation these days means dealing with tight margins and high expectations.  

So, the adoption of last-mile visibility isn’t merely a strategic choice—it’s a vital necessity for keeping a competitive edge over competitors. 

Here are some key reasons why last-mile visibility is essential for your business:

1. On-time delivery

Meeting narrow delivery windows is crucial for keeping clients happy. 

Live visibility tools let dispatchers guide drivers around traffic in real-time and plan the best routes to save precious minutes. 

This means your delivery trucks will consistently hit delivery windows, creating a reputation for reliability that clients can trust. 

In an industry where timing is everything, being known for on-time efficient deliveries makes your business stand out.

2. Customer experience enhancement

In the delivery and logistics business, keeping customers happy is what it’s all about. 

Last-mile visibility enables you to provide your customers with accurate delivery ETAs, real-time tracking, and proactive notifications relating to delivery status. This way, your business creates an experience that transcends transactional satisfaction. 

But why does it matter so much? 

Well, here’s an interesting stat: According to the Zendesk Customer Experience Trends Report 2023, after a single negative experience, more than half of customers will switch to a competitor. 

So, having happy customers is an essential component that keeps your business on top. Happy customers not only come back but also tell their friends, creating a great reputation for your business.

3. Cost reduction and efficiency

Where saving money is crucial, last-mile delivery visibility is your practical tool. It helps you plan the shortest and most efficient last-mile routes based on real-time conditions. 

The result?

You can avoid unnecessary detours and long routes, helping you cut down on fuel costs and reduce wear and tear on your trucks too. This will make your business operations more cost-effective and efficient in an industry where every penny counts.

4. Quick issue resolution

You know what stinks? When a delivery goes wrong and your customer is blowing up your phone wondering where their order is. 

We’ve all been there, right?

Like that time when the traffic jam caused your driver to be 30 minutes late. Or when the wrong address led to a failed first attempt. Talk about headaches!

But what if you had a way to avoid these problems? 

Real-time visibility lets you instantly pinpoint shipment locations and details when addressing inquiries. 

Whether it’s addressing late deliveries or managing inventory issues, last-mile visibility helps your team identify and fix problems promptly. 

5. Performance monitoring

Do you know the key to building a high-end logistics network? A solid team of delivery partners.

But how do you make sure your delivery partners are performing their work in the best way possible? 

Simple – last-mile visibility lets you peek behind the curtain to check on efficiency and service levels.

It lets you see how efficient they are, find areas where they can do better, and make sure they’re meeting the performance standards that you have set. 

By doing this, your business stays ahead in a team effort where everyone needs to perform well for business success. 

6. Adaptability and scalability

Let’s face it – unexpected curveballs are part of business. 

Whether it’s a global pandemic, economic shifts, or competitor moves, change is inevitable. But not all companies respond quickly when the winds shift.

This is where last-mile delivery visibility provides assistance! 

The visibility data and real-time insights on delivery operations can equip you to rapidly adapt strategies and resources in response to unexpected circumstances.

Take the disruption COVID caused. As consumers flocked online, visibility tools allowed retailers like Target to skillfully scale up delivery capacity and speed to retain customers. 

In essence, organizational agility to change course quickly is unlocked by last-mile visibility. Logistics and supply chains with enhanced transparency can efficiently survive industry shocks that might cripple less experienced businesses. 

7. Efficient supply chain coordination

You know what it takes for supply chains to work smoothly? 

End-to-end visibility.

From the replenishment of inventory in the warehouse to the final delivery at the customer’s doorstep, last-mile visibility functions as a system of checks and balances. It provides real-time insights at each process point, ensuring a smooth transition from one stage to the next.

For instance, if you have real-time inventory data, then you’ll be able to timely reorder products, preventing instances of products being unavailable.

Similarly, knowing up-to-the-minute delivery ETAs will allow you to schedule warehouse labor effectively, avoiding vehicle idling time. 

Embracing this level of visibility upscales the coordination of your supply chain, minimizing disruptions and optimizing efficiency.

8. Sustainability improvements

As businesses adapt to a more environmentally conscious world, last-mile visibility steps up to the plate. It actively reduces pollution by planning smarter routes and using less fuel.

Showing that your business cares about the planet isn’t just a good thing to do—it also matches what environmentally aware customers expect. 

By embracing last-mile visibility, your business becomes a responsible player in the logistics world, contributing to a greener and more sustainable future.

9. Scalability for growth

Last-mile visibility solutions lay the groundwork for scalable and sustainable expansion.

Can your business handle increased order volumes, expand delivery networks, or enter new markets seamlessly? Last-mile visibility ensures your operations can handle the increased demands with ease.

Last-mile visibility isn’t just a tool for the present; it positions your business to continually evolve and thrive. It’s the strategic advantage that propels your business forward, making growth not just a possibility but a reality.

Conclusion: Achieving Full Last-Mile Visibility

When it comes to deliveries,  the final stretch – the last-mile delivery – is your opportunity where you can stand apart from your competitors. 

Imagine a world where real-time insights go beyond just parcel delivery – they craft remarkable experiences, nurture trust, and anticipate disruptions. 

Sounds fascinating, right?

Well, you can achieve this in reality with Upper.

As you integrate Upper into your delivery strategy, it’ll streamline your delivery options. It’ll provide you visibility into the location for your deliveries while providing you with the most efficient route to reach the final destination. 

With Upper, you can:

• Strategically plan and optimize routes for faster deliveries
• Significantly reduce distance traveled and cut down on fuel costs
• Track last-mile deliveries in real-time and get accurate ETAs
• Provide  delivery status to your customer through automated notifications
• Seamlessly collect electronic proof of delivery
• Offer the convenience of on-demand delivery
• And a plethora of additional features designed to make your last-mile operations efficient

So, experience the power of last-mile excellence by taking a 7 days free trial of Upper. Elevate your delivery processes, establish lasting trust, and emerge as a leader in the ever-evolving delivery landscape.