We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Blogs » One-Off Sound Off » Strategic Positioning for Last-Mile Delivery can Minimize Supply Chain Disruption

One-Off Sound Off
One-Off Sound Off RSS FeedRSS

One Off Sound Off
Would you like to submit a guest blog post to DC VELOCITY? Fill out the submission form.

Andy Kirchner, owner and CEO of NOTS Logistics, a customized supply chain solution company with over 4 million square feet of warehouse space and a service area covering the U.S.

Strategic Positioning for Last-Mile Delivery can Minimize Supply Chain Disruption

Last-mile delivery is absolutely critical, but it happens to be overlooked, especially during times of disruption.

April 5, 2021
Andy Kirchner
No Comments

In supply chain logistics, a job is either done or it’s not—there is no middle ground.

The end consumer doesn’t care if their order almost makes it to them. Unless they receive it, the supply chain has failed. That last leg of the journey, Last-Mile Delivery (LMD), is absolutely critical. But it happens to be overlooked, especially during times of disruption.

Adverse weather events, natural disasters, infrastructure challenges, financial disruptions, and global pandemics can wreak havoc. While such challenges are unavoidable and unpredictable, investing in LMD can minimize risk to the overall supply chain.

Like a referee in sports, no one notices Last-Mile Delivery until it falls short—then people get angry. It’s where reputations can be strengthened or ruined, and that’s why LMD should be central to every supply chain strategy.

The Last-Mile Challenge

Last-Mile Delivery amounts to approximately 53% of the overall cost of shipping and the complexity can be overwhelming.

The last stretch of the journey happens to be the toughest and also the most consequential. If that final leg is complete - a manufacturing plant operating can keep operating or an auto mechanic can make final repairs on a customer’s vehicle. If it fails - the domino affect ripples through an economy.  

Some manufacturers don’t get paid until the product gets sold, so LMD is often the revenue-generation point. 

LMD also the most scrutinized length of the supply chain. Because today’s end users can track and monitor, in real time, every link of the supply chain, there is no hiding. Third-party logistics providers that handle LMD have an obligation to perform, and that pressure is on the rise.

Supply chains are stretched due to the explosion of ecommerce that was accelerated by COVID-19. Consumers are becoming increasingly particular about delivery timelines, and expecting “free” shipping, putting even greater pressure on LMD logistics providers.

So how can Third Party Logistics Providers (3PL’s) manage the additional stresses?

Last-Mile Solutions

For years, I’ve seen firsthand the importance of last-mile efficiency in the window-and-door industry. Every spring there is a mad rush of people remodeling their homes and retail outlets need an increased supply.  Thousands of customers flock to home and garden sales across the country to upgrade their homes and not having the right supply on hand could be a retail disaster. 

How do we manage? It starts with having contingency plans for the worst-case scenarios for each time of year.  Here in the Midwest, Spring has its own unique set of potential catastrophes that could break the supply chain like road closures from the occasional snowstorm or a bridge wash out from flash flooding. These acts of mother nature are largely unpredictable from year to year but anticipating them ahead of time can put you in a better position for success if you are prepared.  Here are some other ways to leverage LMD as a strength. 

  • Capacity -We have found that having sufficient space is critical to minimizing supply chain disruptions. Otherwise, if you can’t complete the last mile and get the product out to customers, inventory can stack up at the final warehouse location before final distribution.
  • Technology - With the prospect of electric vehicles, drones, and delivery robots becoming more commonplace, and with the surge in micro fulfillment centers, the future of last-mile is exciting and should be embraced.
  • Communication - While no one can predict when the next major disaster will strike, being able to take those disruptions in stride requires communicating with all the stakeholders who touch LMD in some way. Strong partnerships are tremendously helpful in risk mitigation planning.
  • Adaptability- LMD is evolving in the face of new challenges as well as opportunities. For example, cybersecurity wasn’t a thing when goods were transported 100 years ago. Today, it’s a looming threat that everyone has to plan for. What will tomorrow’s threat be? We better adapt and be ready.

Bringing it Home 

Last-Mile Delivery is costly, complex, and high-stakes. There will be unexpected disruptions, and there is no hiding when things go sideways. But, for 3PL’s that are able to rise to the occasion, anticipate challenges and be prepared for the worst, LMD can pay off. Customers will be appreciative of an LMD provider that plans ahead, embraces technology, communicates effectively, and adapts with the market.

 

 

 

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

9cddf77b a6f2 40d3 b603 004e451106fb

Dealing with Rapidly Rising Freight Costs

DCV-TV 4: Viewer Contributed
I don’t know if it’s because of our Two Minute Warnings, or the fact that shippers are experiencing the conditions we warned about in our Code Red webcasts, but lately, I’ve heard the same message from several C-Level and supply chain executives: Their companies are experiencing supply chain challenges and their...

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing