Last mile short cuts: the latest data-driven approaches to your biggest logistics challenges

Logistics data + customer understanding = optimal efficiency and competitiveness for logistics operators

That’s the first short cut we’d like to share with you in our series of concise last mile insights blogs. Inspired by our recent visit to the Last Mile – Leaders in Logistics event, we want to give you the lowdown on the latest proven techniques that can help you sharpen your efficiencies and improve your margins… and maybe transform your approach to some of the tough challenges that everyone in the sector is facing at the moment.

We had some great conversations at the Last Mile event, which helped us focus even harder on the key issues for sustained success and growth in logistics. Customer understanding and routing intelligence are key to effective planning for the last mile in a fast-changing, high-demand delivery market. Everyone wanted to talk about making the most of resources to match efficiency and cost management needs. Balancing this with customer expectations and the need for speed is a complex challenge.

Up to 55% of the total cost of logistics operations are incurred in the Last Mile.

Source: ATOS

Logistics organisations need to manage costs by adopting the most efficient service propositions. To identify these, they need to calculate demand accurately, for return logistics as well as deliveries. They need precision route planning solutions to help optimise routes and schedules, taking a data-driven approach to help them deploy the right fleet in the best way for different schedules.

39% of online customers are most frustrated by the time to get products delivered.

Source: SOTI “From Bricks to Clicks” report 2021

Dealing well with change and variation is key in a high-volume consumer market. Predictive modelling helps organisations anticipate changes that will affect delivery schedules and customer requirements. Customers are constantly raising the bar on expectations of their home deliveries – they want the full range of pick-up options, availability of slots, fast same day or next day delivery and greener options.

Data is your not-so-secret weapon. Keep customers up to date with clear, proactive communication based on forward visibility from realistically planned schedules. Data modelling that reveals the ease or difficulty of accessing every property can inform realistic stop times and improve efficiency. Customer insight based on behavioural and demographic data helps you to create variable delivery cost models and fulfilment options to meet different situations and customer preferences.

90% of online customers prefer to have their goods delivered to their home location.

Source: Statista, Online deliveries and returns in the United Kingdom (UK) 2022

To succeed and grow market share, logistics operators and the brands that use them need to deliver excellent customer experiences. With good historic and predictive data, you can be ready to meet ever more challenging delivery expectations and communicate positively with end customers. This can open the way to offering more green and sustainable services in a way that benefits customers, the environment and your bottom line.

The really big question is – how can your organisation do any of this in practice, in an affordable and low-risk way? In our coming blogs, we’ll zoom in on specific issues in a straightforward way. We’ll explain how we can help your logistics organisation optimise its approach to each challenge by using intelligence, data and tools in a smart and focused way.

With CACI’s logistics consultancy, you can make the unknown known, and own the future of your business. Get in touch today at iwheeldon@caci.co.uk

Look out for the next blogs in the Last mile short cuts series:

• Last mile short cuts: the value of knowing your cost to serve
• Last mile short cuts: Accurately predicting delivery stop times
• Last mile short cuts: the logistics for a successful returns service