This document discusses last mile delivery. It defines last mile delivery and explains its importance for meeting customer expectations of fast delivery. It provides examples of last mile delivery for both B2C and B2B contexts. The document also outlines some of the key challenges of last mile delivery like high costs, late deliveries, and outdated technology. It explains that last mile delivery is expensive due to consumer expectations of fast shipping and real-time tracking, as well as issues related to failed deliveries that increase replacement costs. Finally, it discusses some improvements in last mile delivery like route optimization, auto-dispatch systems, real-time tracking, and analytics that help increase efficiency and lower costs.

1. Presented by- Arnab Biswas

2. CONTENT
 What is Last Mile Delivery?
 Importance of last mile delivery?
 Examples
 Why Last mile Delivery So Expensive?
 Challenges in Last Mile Delivery
 Improvements/solutions in Last Mile Delivery

4. LAST MILE
DELIVERY

5. LAST MILE
DELIVERY

6. Why Last
Mile is Vital?
Since, customers are willing to pay more for faster
delivery. Businesses can compete by ensuring that their
eCommerce operations and strategies are 100%
customer focused. Here are a few ways:
Omnichannel Supply Chains
Omnichannel operations give customers options for
purchases and returns by integrating all sales outlets.
Inventory Forecasting
Deliveries cannot be made quickly if the products are not
in stock. Using inventory management and forecasting
tools, retailers can spot trends in customers’ purchase
habits and use that information to forecast demand.
Based on this forecast, items can be moved to nearby
fulfillment centers, so they are available and ready for fast
delivery.

7. EXAMPLE (B2C)

8. EXAMPLE (B2B)
• On the B2B side, shippers deal
with much larger purchase
orders and deliveries that are
more consistent over an
extended period due to
customer contracts.
• Handling these deliveries poorly
can result in damaged
relationships.

9. WHY IS LAST MILE DELIVERY SO
EXPENSIVE?
CONSUMER EXPECTATIONS
With the development of technologies consumers demand features like real-
time tracking of deliveries. For ecommerce businesses to create such
features, they need tech stack and infrastructure investments, leading to
higher costs.
FREE SHIPPING
With the rapid change in consumer behaviors, the surge in demand for free
shipping puts more pressure on the ecommerce platforms.
ISSUES RELATED TO DELIVERIES
Due to the lack of route optimizations and tech stack, it leads to failed
deliveries or errors, which incurs more costs. With the additional expenses of
product replacements, returns, and failure of delivery attempts, the cost of
last mile delivery increases.

10. CHALLENGES OF LAST MILE DELIVERY
Lack of visibility
High delivery costs
Late deliveries
Outdated technology
Low efficiency levels
Inadequate route planning.
Unpredictable elements

12. Route optimization feature
considers traffic, location,
capacity, and time to discover
the most efficient routes for
faster delivery.

13. Auto- dispatch system helps you
to go through hot- shot
assignments with utmost ease. It
also minimizes labor costs and
service time by assigning the most
suitable driver for the right task at
the right time.

14. Real time status updates of the
shipments to the customer
makes the delivery process
transparent.

15. Analytics provide you with the
graphical representation of key
business insights which helps
you take insight-driven business
decisions.

16. |SUBSCRIPTION BASED MODEL
• Companies like Amazon, Flipkart,
Zomato, Swiggy etc. introduced
subscription based model for
delivery.
• It increases cash flow for the
company.
• Gives a little relief in customer
expectation of ‘free delivery’.
• Increases business.