Cut Last-Mile Delivery Costs with Milk Delivery Solutions
In the fast-paced world of milk delivery solutions, optimising last-mile delivery costs is crucial to the success of any business. With rising fuel prices, labour expenses, and increasing customer expectations, milk delivery companies must find innovative strategies to reduce costs without compromising service quality.
Milk delivery is a convenient and popular option for many people. However, the last mile of delivery can be expensive. According to a study by Business Insider, “The last-mile delivery can account for 53% of a shipment’s costs.
In this blog post, we will discuss the reasons for high delivery costs and some strategies that businesses can use to cut last-mile delivery costs with a milk delivery app.
Factors that increase the cost of last-mile deliveries
Failed deliveries – When deliveries fail, they have to be rescheduled, which increases delivery costs. This can double delivery costs.
Manual operations – Orders are dispatched manually, and errors during manual dispatching can lead to incorrect deliveries or wrong addresses.
Fuel consumption- Delivery in densely populated areas or long-distance rural areas can result in longer distances and fuel costs can increase if the route isn’t planned.
Delivery inefficiency – It is defined as the number of deliveries made by a single driver. Low efficiency can result in increased costs of hiring more drivers.
Top 4 delivery strategies to cut last-mile delivery costs
Route optimisation and planning
One of the most effective strategies to decrease the expense of last-mile deliveries is effective route organisation and optimisation. Through the use of a delivery management system, delivery services can create the most economical routes that take into account factors such as distance, traffic flow, and delivery timeframes. Delivery routes that are optimised not only lower fuel costs but also improve the number of deliveries per route, lessening the need for extra delivery vehicles and employees.
Real-time tracking and telematics
By deploying real-time tracking and telematics technology, milk delivery companies can stay informed about their delivery fleet at all times. This data-driven strategy provides managers with insights to locate and rectify any discrepancies and take immediate steps to alter routes. Furthermore, real-time tracking ensures that drivers stick to the most effective routes, thereby reducing expenses and improving the accuracy of deliveries.
Contactless delivery and self-service options
Offering contactless delivery options and providing self-serve pickup spots can streamline the delivery process while decreasing labour expenses. By allowing customers to retrieve their goods from accessible sites or setting up secure drop-off points, delivery companies can save time and money while providing customers with added convenience.
Subscription model and analytical insight
By utilizing a subscription-based delivery model, milk delivery companies can gain a stable flow of income while optimizing delivery routes. Analyzing customer preferences and buying behaviours with predictive analytics will enable them to forecast demand and combine deliveries in certain areas. This strategy will guarantee a productive delivery timetable and limit needless trips, thus decreasing overall delivery expenses.
The milk delivery industry is rapidly changing, making it essential for businesses to focus on reducing last-mile delivery costs to remain competitive. There are many ideas that can help milk delivery services become efficient without compromising service quality, such as route optimization, using technological tracking in real-time, using green transportation, and introducing subscription models with the help of milk delivery solutions. By thoughtfully utilising these cost-cutting techniques, businesses can remain profitable and give customers a great experience. If you are interested in knowing more about these strategies, book a brief call with our industry experts to see how we can help you.