What Is Last Mile Optimization?
Last-mile optimization is the process of determining the most cost-efficient route to deliver products from a warehouse or dark store to a customer’s door. Using last mile delivery software is critical for any modern delivery business or eCommerce company. Besides being the most expensive and resource-consuming stage of any supply chain, it’s also a key to customer experience, satisfaction, and loyalty.
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How to Optimize Last Mile Delivery
Here are a couple of crucial ingredients for optimizing the last-mile delivery:
- Get more visibility over your entire supply chain.
- Optimize your fleet capacity and team utilization.
- Plan optimized last-mile routes.
- Account for your customers’ location and delivery constraints.
- Compare planned and actual performance metrics.
Last Mile Delivery Optimization Software
Last mile delivery optimization software is designed to resolve the Vehicle Route Problem (VRP) and the Traveling Salesman Problem (TSP) in seconds. These are among the most complex logistics problems that are almost impossible to solve manually without wasting time and making errors.
A route planner for last mile delivery helps field service companies and delivery businesses to get the most out of their team and fleets and win the last mile. Last mile delivery optimization software can sequence hundreds of thousands of destinations in the most cost-efficient and time-effective manner while factoring in customer variables and fleet capacity parameters.
Benefits of Optimizing the Last Mile
The most relevant benefits of optimizing your last mile include:
- Save money on extra wages
- Optimize your routes
- Reduce accident risks
- Reduce fuel expenses
- Improve your drivers’ productivity levels
- Increase customer satisfaction
- Expand your business