Last mile delivery is being optimized through new technologies that improve data collection and order fulfillment in real time. Retailers are focusing on website optimization to increase online sales volume and revenue, requiring adaptation from last mile delivery partners. To improve efficiency, e-fulfillment centers have been added locally to focus on order fulfillment. Courier services now offer options like bicycle delivery and outsourcing to services like Uber to avoid traffic. Distributed order management systems analyze inventory locations to fulfill orders from one distribution center in one box. Delivery window planning and automated technologies in fulfillment centers aim to get products to customers faster. Route optimization and transportation scheduling tools help standardize operations to reduce costs and improve customer experience.

1. How Last Mile Delivery affects
the Supply Chain, E-tailing
&
Order fulfillment
By
Zubin Poonawalla
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2. Last Mile Delivery :
Data Communication & Collection
• The LMD stage of the supply chain must be flexible in order to
meet customer needs & any last minute change that are likely
to occur.
• Operations team are now utilizing automated data collection
devices to view & update info in real time. Using these mobile
devices allows them to quickly view requested delivery
changes & route updates & update order status.
• Replacing manual paper based processes with data collection
devices has helped to increase supply chain visibility & data
availability while improving the last mile customer experience.
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3. Retailers focus :
Website & Optimization
• Through careful analysis of eCom sites usage trends, website
developers have found that inovative, user friendly shopping
carts promote larger & more frequent online purchases.
• Retailers are now focusing into optimizing their websites in
order to increase online sales & generate more revenue. This
will force retailers & their LMD partners to adapt to handle the
volume influx.
•
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4. E-fulfillment distribution center addition
• To make last mile logistics more efficient, many transortation
providers are expanding their distribution networks to focus
more on localized delivery rather than nationwide
distribution.
• Many new small e-fulfillment distribution centers, focusing on
eCom order fulfillment, have been added within the urban
areas in the form of click-2-collect centers to give consumers
additional delivery options while still providing a local
presence.
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5. Courier Service evolution
• Many local & regional couriers have expanded their delivery
options with some creative new additions aimed at improving
the efficiency of LMD services.
• In many densely populated cities, couriers have added bicycle
delivery for small parcel delivery to avoid traffic congestion &
expedite the last mile.
• Some have also opted to outsource services to vendors on a
one-time basis. Eg Uber Delivery. Uber drivers near a pick up
site can pick up a package just as they would a passenger &
deliver to its final destination.
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6. DistributedOrderMgmtrules
• When inventory is stored in multiple geographic locations,
fulfilling customer orders can be complex & costly if not
executed deligently.
• Many retailers have opted to implement WMS with
distributed order mgmt functionality to streamline order
fulfillment operations.
• Through custom workflow design, order fulfillment rues can
be automated, taking the guesswork out of selecting the most
effective distribution method.
• Without the use of automated distributed order mgmt, many
supply chain businesses waste resources shipping orders in
multiple boxes from multiple locations because they are the
first available.
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7. Distributed Order Mgmt rules …..contd
• With distributed order mgmt, the WMS can analys incoming
inventory items & other factors so that the orders can be
fulfilled in one box from one DC, thereby saving time, money
& labor.
• Automated customer notifications can also be developed in
these types of systems which helps to keep customers up to
date & informed on the status of their order. Informed
customers are happy customers.
•
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8. Delivery Window planning
• LMD accounts for a significant portion of transportation costs
in the supply chain, sometimes as much as two-thirds. In an
effort to reduce these costs, transportation operations have
started to implement delivery window planning.
• During checkout, customers are given option to select what
delivery time works best for them to ensure they are home to
accept the package. This helps to eliminate redelivery
occurrences due to signature requirements or collecting COD
payment.
• Some retailers are going as far as to offer discounts to
encourage specific delivery options with purchase.
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9. Automated Data Collection & Order
fulfillment
• In an effort to get products in consumers hands faster, supply
chain operations are also utilizing automated data collection
technologies inside their fulfillment centers.
• Using ADC devices to assist with time consuming manual
processes such as picking / packing helps to reduce “touches”,
making the workforce more efficient.
• Making fulfillment centers more efficient indirectly improves
LMD because it enables retailers to offer faster delivery times,
a key differentiator in a competitive environment.
•
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10. Delivery Route optimization &
Transportation scheduling
• Many supply chain businesses are now implementing route
optimization & transportation planning tools to assist in
making LMD more efficient.
• These software tools are use order data from the WMS to plan
daily routes, taking into account mileage & fuel efficiency
requirements.
• Utilizing these tools helps supply chain operators to simplify
operations through automation & can help to reduce costs &
better service to the eCom customers.
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11. Conclusion
• LMD is changing how businesses service customers – from the
website design to what type of vehicle is used in delivery.
• These adaptions to the retail supply chain allow retailers to
standardize operations & provide a consistently positive
experience for shoppers.
• Retailers & delivery service providers are relying on
technology more than ever before to reduce the time & cost
of delivery to the consumers.
• Technology solutions like WMS, TMS, transportation planning
& route optimization tools are key to efficient, less costly
operations, streamlined deliveries & customer satisfaction.
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12. Thank - You
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