How Retailers are Solving The Final Mile Problem

Retailers often call it the last or “final mile” problem. It’s how they describe the last portion of a parcel’s journey to a customer’s door. Final mile delivery accounts for more than 40% of the total shipping costs for most retailers. So getting it right is a big investment. Identifying an efficient, sustainable solution for the final mile of order fulfillment has become a major pain point in the e-commerce industry. But many high-growth retailers have discovered that a good final mile delivery gives them a competitive advantage, not just on pricing, but on customer service. Businesses are twice as likely to see customers place multiple orders if they receive their orders on time. More and more businesses are turning to regional parcel carriers, like Express Courier, to complete the final mile of their deliveries.

The truth about online order fulfillment

Even national parcel carriers like UPS and FedEx admit they can’t carry the increasingly heavy load of deliveries from online sales. Retailers are beginning to realize they can’t risk the success of their business by only using mammoth delivery services that are operating at full capacity, tacking on surcharges, and continually raising rates. Some businesses are taking even bigger risks like trusting unproven and inexperienced ride-sharing or food delivery services. Smart retailers are partnering with regional parcel carriers who offer established operations, trusted transportation networks and dedicated drivers.

Express Courier and other trusted regional carriers take advantage of technology to integrate with a retailer’s order delivery system, track parcels, provide delivery updates and quickly develop workarounds when needed. E-commerce businesses may be reluctant to add a regional carrier to their delivery options, but most find the integration is seamless and end up using the local carriers much more than they anticipated because of their increased capacity, rapid delivery times and cost savings.

The Importance of the final mile

The final mile of order fulfillment is really the most important piece of the delivery path when it comes to customer satisfaction. In many ways, the person who delivers a company’s order to a customer’s doorstep is viewed as the face of that company. Regional carriers tend to hold their drivers more accountable because they place more value on their retail customers. A national delivery chain may not worry about losing customers, because they can absorb the loss, while regional carriers are often more responsive and go the extra mile to ensure all orders are fulfilled on time and in one piece. It makes sense to use a regional carrier, like Express Courier, when retailers want to offer their customers faster delivery times, need flexible logistics solutions, and want to avoid congested shipping lanes and surcharges.

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