Benefits of Third Party Final Mile Logistics

final mile logistics

Do you run a business that delivers goods to its customers? If yes, you probably are spending a lot of money on logistics.

While you might have sufficient money to spend on developing in-house delivery services, outsourcing your final mile delivery could be the right option for you and your customers.

Final mile delivery is the final link between you and your customer. After your customers have identified the products they like and ordered them, you need to deliver them to their doorstep. Usually, this can be the single most challenging step of the entire transaction due to the planning, service, and logistics required.

Businesses that manage the logistics themselves invest a hefty amount of money into it. This isn’t because they want to offer the best quality service, but due to necessity. For the logistics part alone, you need vehicles to carry out the deliveries, trained and professional delivery drivers, and insurance to cover it all. And that’s without any high-end technology to offer live tracking for customers along with the other perks that well-reputed delivery companies offer.

Here are some benefits of third party final mile logistics.

Benefits of Third Party Final Mile Logistics

The last mile can account for more than half of the total shipping costs, making it a prime avenue for improvements that can save your time and money. Outsourcing your final-mile logistics can make your shipping process more efficient, keep your customers happy, and equip you with better data.

1. Improve Profitability

Outsourcing your deliveries can increase your business’s profitability. By eliminating the need to handle delivery services in-house, you can cut down a significant cost. Additionally, you can offload major liabilities such as vehicles and recurring outflows such as insurance and fuel. You can reinvest the money you save into outsourcing and other more lucrative areas of your business.

2. Enhance Delivery Efficiency

Another benefit of third party final mile logistics is that it can improve your business’s efficiency. You can switch your attention and focus from planning, maintaining a fleet of vehicles, optimizing delivery routes, and recruiting drivers to the areas of your business that generate more revenue.

3. Avail Technology Benefits

You know your business in and out. You understand how to manufacture your products. But you might not always understand the technology that can streamline your business.

When you outsource the final mile delivery, you can leverage all the technology that helps your product make its way to your customers more quickly. You don’t have to understand how the company tracks it or moves it quickly. You just avail of its benefits.

If you are planning to outsource any part of your business, then the final mile delivery service makes the most sense. Your customers will instantly notice that you have dependable and quick service.

You can benefit from all the apps that final mile delivery services utilize as well. Final mile delivery services can tailor an app, particularly for your company, that streamlines delivery.

4. Delivery Tracking and Transparency

Delivery times are an extremely important factor for your customers. In fact, one survey reported that 83 percent of shoppers state that knowing when an item is going to arrive is the most critical service for an online retailer to offer.

The good news is that final mile delivery providers have developed transparent processes so your customers know the precise status and shipping times for their orders. Moreover, these companies offer regular and clear communication to boost customer satisfaction. Applications that offer notifications and live tracking are vital for all your final mile deliveries.

5. Seamless API Integration

The top final mile delivery services work with the best e-commerce tech solutions and agencies to seamlessly integrate with their delivery solution. This synthesis allows you to integrate your e-commerce website with its services to offer delivery flexibility to customers and retain complete control of user experience data. These simple and easy-to-use services help your business prosper and grow.

6. Reduce Risk

Mitigating business risk is a priority now more than ever because of the uncertainties brought on by the COVID-19 pandemic. You can reduce safety risks and theft by outsourcing final mile deliveries to third parties. Specializing in professionally managing final mile deliveries from your warehouse, business hub, or store, final mile delivery service providers are even experts at safely managing vehicles and individuals to limit your exposure to uncertainty-related risk.

For instance, drivers are trained to take additional precautions for safety and health – a lot of them sanitize packages, wear gloves, send texts, take pictures, or provide other notifications after a package has been delivered.

Some final mile companies enable customers to pick their delivery window for increased convenience and minimize porch theft. The complexity of this service level makes automated software essential for delivery route optimization.

7. Brand Image

Despite the introduction of time-specific deliveries or same-day deliveries, customer expectations are still increasing. More often than not, they want quick deliveries at no extra cost. In the extremely competitive e-commerce sector, outsourcing your final mile deliveries help you keep pace with or stay one step ahead of the competition.

8. Insurance Coverage

The best final mile delivery service will have insurance coverage for your packages. They will cover a package if it gets lost or stolen. This removes your liability once the package leaves your store or warehouse. Insurance coverage indicates you can trust the final mile delivery service.

Last Few Words

At 3PL Bridge, we aim to solve your biggest logistical challenges. We help you identify the best third party final mile logistics partner so that you can save valuable time, generate more revenue, grow your business, and get access to friendly support.