The last yard is the final leg of a delivery journey, and it can be a competitive advantage for companies that have learned how to manage it effectively. The last-yard operation has traditionally been viewed as an expense to be minimized, but some customers are willing to pay more for enhanced convenience. Convenience can improve customer satisfaction and drive revenue growth. Customers who receive goods at their door are seven times more likely to reorder than those who receive products in a post office box or parcel locker.
The last yard is the final leg of a home-delivery journey.
The last yard has been used in the logistics and supply chain industry for years. As you can imagine from its name, it represents the final leg of an end-to-end home delivery journey. This last stage can be tricky for retailers because it requires careful coordination between your company’s local network and its third-party carriers. It also tends to be one of the most expensive parts of your operation (because you’re paying for all those extra miles).
The last yard is where most of the delivery exceptions occur. If you’re not delivering to the right location, your customers will have to wait longer, and they may be unable to get their packages.
Delivering on time but late notice can also impact customer satisfaction and delivery reliability. As we mentioned, customers expect on-time deliveries—but they also appreciate being notified when there’s an issue with their package delivery.
In this final stage of online shopping, customers have an opportunity to interact with your brand: Do you want them to feel like their experience was worth the wait? Or do you want them to feel frustrated after waiting for hours in front of their house?
The last yard is where most of the delivery exceptions occur.
Delivery exceptions are the most common reason customers complain and leave negative reviews. In addition, they can lead to a customer not receiving their goods or receiving them late.
The last yard is where these exceptions occur: When you’re out of stock at the warehouse; when you cannot track down your driver; when a truck breaks down en route—any number of things can happen during delivery that will cause delays or result in lost packages.
Multiple challenges in the last yard may lead to an exception.
The last mile is a complex operation. And not only does it have its unique challenges, but it also presents an opportunity for carriers to differentiate themselves from their competitors and win more business from retailers.
To be successful in the last mile, you need a solid understanding of your customer base and those customers’ needs. You’ll want to consider the following:
- The type of products being shipped;
- The size and weight of those products;
- Where they’re going; and
- What time of year (holidays).
The last mile has traditionally been viewed as an expense to be minimized, but some customers are willing to pay more for enhanced convenience.
The last mile has traditionally been viewed as an expense to be minimized, but some customers are willing to pay more for enhanced convenience.
Convenience can enhance customer satisfaction and drive revenue growth. Customers want you to take responsibility for their goods until they’re handed over to them personally, which requires a different approach from the traditional “just-in-time” logistics model (where products move from supplier to end user without ever being stored). The last mile is where most delivery exceptions occur and when customers have their first impression of your brand. If something goes wrong in this stage, it is often difficult or impossible for companies to repair the damage to their reputation by late/missing/damaged deliveries.
Convenience can enhance customer satisfaction and drive revenue growth.
- Convenience can enhance customer satisfaction and drive revenue growth. Customers who receive goods at their door are seven times more likely to reorder than those who receive products in a post office box or parcel locker. So if you’re not already delivering to residences, consider the benefits:
- Guaranteed delivery time
- Reduced risk of theft or damage during transit
- The better customer experience (you’ll be able to communicate directly with customers about their deliveries)
Customers who receive goods at their door are seven times more likely to reorder than those who receive products in a post office box or parcel locker.
In addition to convenience, delivering goods to customers’ doorsteps also has other benefits. For example, customers who receive goods at their door are seven times more likely to reorder than those who receive products in a post office box or parcel locker.
Customers want you to take responsibility for their goods until they’re handed them personally.
Customers want you to take responsibility for their goods until they’re handed them personally. This means that customers expect you to:
- Track the package
- Put them in control by letting them know when the package will arrive.
- Let them change the delivery address if necessary.
- Provide a way for customers to contact you if there is an issue with the order or delivery, such as needing further information about what will happen at each step along the way
Finally, customers want a way of tracking where their packages are on route, so it makes sense for last-yard deliveries like ours to offer this service too.
View your last-mile operation as a source of competitive advantage and opportunity for increased revenue rather than just another cost center.
The last mile is where most of the delivery exceptions occur. So, instead of viewing your last-yard operation as just another cost center, consider it a source of competitive advantage and opportunity for increased revenue.
At first glance, this may seem counterintuitive: If you’re spending money on customer service and convenience features to build a loyal customer base—and then charging them more for those services—couldn’t that hurt your bottom line? Not necessarily. As long as customers are willing to pay more for enhanced convenience (which they often are), it’s possible that increasing costs can translate into higher profits over time.
Use the right last-mile delivery software to optimize logistics costs while maximizing customer convenience.
In today’s fast-paced and competitive marketplace, the last mile is no longer just a cost center for your business. A profit center can help you stand out in the crowd. And if you’re using the right software, keeping your customers happy will be even easier while ensuring your bottom line stays strong.
The best way to understand how this works is by comparing two delivery models: door-to-door and curbside drop-off (CSD).
Know more about Best Last Mile Delivery Management Software
