LOGISTICS DURING THE CORONA CRISIS
Corona pandemic promotes digitisation among transport service providers
Bordesholm, October 1, 2019
CHAPTER 2
Challenges on the last mile: speed and efficiency
The events on the last mile are a particularly sensitive point in transport, still in the test phase and demanding enormous organisational efforts from shipping service providers and driving up costs. In particular, unsuccessful delivery attempts cause over 50 percent of the total costs* and are therefore the largest cost factor in package delivery.
Approaches to solve this problem have already been implemented in delivery traffic. For example, it is now common practice that short-term change requests can be made with regard to the type of delivery or the delivery location. Customers have the option of changing the recipient address and storage location via app or internet browser until shortly before delivery.
The disadvantage for the service provider: change requests from customers often force a change in routes that have already been selected. But the change option also offers advantages because it significantly increases the likelihood of meeting the recipient on the first attempt at delivery. According to statistics, the recipients of a conventional first delivery attempt are absent** in over 33% of the packages to deliver, up to 10% of the parcels have to be taken back by the CEP services and a next delivery attempt must be made.
All in all short-term change options are very customer-friendly, but can only be successfully implemented by CEP service providers with an extremely high degree of flexibility and personnel. That makes this option more of a reputation-enhancing than an economically valuable alternative at the moment. The hoped-for relief on the cost side has not yet been achieved, which is why some providers have already stopped their services, such as DHL, the Wunschzeitlieferung (preferred delivery time) at the beginning of May 2020.
All in all short-term change options are very customer-friendly, but can only be successfully [...] implemented by CEP service providers with an extremely high degree of flexibility and personnel. That makes this option more of a reputation-enhancing than an economically valuable alternative at the moment.
Another strategy that, in contrast, has already been successfully established is pick-up of the goods by the customer. The customer completes the last mile himself by collecting the goods at a parcel station or in the parcel shop. This solution relieves the service provider and is widely accepted among customers.
More information on this topic
The following article is also part of our reports on the effects of the corona crisis on logistics:
CORONA CRISIS ACCELERATES STRUCTURAL CHANGE
Digital solutions support logistics companies in the competition for e-commerce partnerships
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