First Mile Delivery: What It Is and Why It's Important (2023)

Do you run a business that delivers goods to customers? If so, you know that the first step in the delivery process, commonly referred to as first mile delivery, can make or break an entire logistics operation.

In fact, the success or failure of the first mile can have a big impact on the rest of the supply chain.

But what exactly is first mile delivery? Why is it so important? What challenges do companies face when trying to optimize this shipping process?

Fear not, because we've got you covered. In this article, we'll delve into the world of first mile delivery, discovering what it is, why it's important, and how you can improve it.

Read on if you want to streamline your logistics operations, shorten delivery times and keep your customers happy.

Understanding the ins and outs of first mile delivery is the first step to thatdelivering excellence to customerswhenever.

Key takeaways:

• First mile delivery is the critical first step in the supply chain. It consists in transporting the goods from the place of origin to the next stage of the delivery process.
• Optimize your first mile delivery by focusing on reducing inefficiencies and streamlining processes. This includes optimizing routes, automating tasks, and reassessing packaging and labels.
• You need to prioritize first mile deliveries to ensure seamless delivery for your customers.
• Key challenges in first mile delivery include a lack of focus on the first mile experience and reliance on manual processes.

What is first mile delivery?

First mile delivery is the critical first step in the supply chain. It forms the basis of the entire delivery process.

It involves transporting goods from their point of origin, such as a manufacturing facility, to the next stage of the supply chain process.

But here's the thing: the first mile can look different in different industries.

For retailers, this can mean delivering goods from a regional warehouse to a local distribution center or store.

For logistics services, this can be a same-day service or an on-demand service. For example, when they collect the goods from the sender and deliver them to the consignee (the person who receives the goods).

For removals and warehousing companies, this involves collecting inventory from the client's home or store and bringing it back to the warehouse.

Regardless of your industry, the first mile delivery process can be complicated. This involves loading and unloading shipments multiple times, managing different drivers for the same goods, and coordinating shipments from multiple retailers.

First mile delivery versus last mile delivery

First mile delivery andlast mile deliveryare the two critical ingredientssupply chain. They are responsible for delivering the goods from the place of origin to the destination.

However, they do have a few key differences.

First mile delivery involves transporting the goods from the point of origin to the next stage of the delivery process.

It can be a local distribution center, a store or even a logistics service warehouse. The emphasis is on moving the goods from the starting point to the next leg of the journey.

Last mile delivery is the last step in the delivery process where the goods reach their final destination, such as a customer's home or business.

This is the most critical phase of the delivery process as it involves the transfer of the goods into the hands of the final customer.

Both first mile delivery and last mile delivery are part of the supply chain. The first mile is to deliver the goods from the starting point, while the last mile is to deliver them to the consumer.

If your business specializes in last-mile deliveries, we can certainly help. Our Circuit for Teams tool can help you easily manage multiple drivers and routes. All this helps to save time and money!

Why is first mile delivery important?

The first mile of the delivery process is like the foundation of a home. If it is strong, you can easily build the rest of your house on top of it. But if the foundation is weak or faulty, the whole house can collapse.

Similarly, first mile delivery is the foundation of any supply chain. Optimization and efficiency can lead to a smooth and successful delivery process.

But first-mile delivery errors and inefficiencies can impact the rest of the supply chain. It worksdelays, increased costs andfrustrated customers.

Businesses that prioritize first-mile deliveries can provide customers with a hassle-free, hassle-free experiencepositive delivery experience.

This leads to customer satisfaction and can giveCourier servicescompetitive advantage in the unforgiving world of e-commerce.

Key challenges of first mile delivery

Companies have to overcome a number of hurdles to ensure that their first mile deliveries run smoothly.

Let's take a closer look at some of these challenges.

Not prioritizing the first mile experience

While companies often focus on the last mile delivery experience, the first mile is just as important. Neglecting the first mile can lead to delivery delays, errors, and ultimately a poor customer experience.

Take the example of a customer who orders a product online and is promised delivery within two days. They may feel frustrated if the carrier doesn't pick up the product on the promised date.

The Circuit for Teams app allows you to track your driver's movements, so you can keep your customers updated on the estimated delivery time. They will know about shipping delays in advance (instead of getting disappointed at the last minute).

Relying on manual processes

The first delivery mile is often characterized by manual processes and paperwork. This can lead to inefficiencies and errors.

Digitizing the first mile allows businesses to improve speed and accuracy.

For example, usingelectronic signaturesinstead of paper ones, they can speed up the first mile of delivery. It can also reduce manual data entry errors.

Circuit for Teams also giveselectronic proof of delivery. This reduces manual processes while ensuring customer satisfaction.

No visibility

The first mile of a delivery can involve multiple pages and transfers, leading to a lack of visibility into the status and location of your shipment.

This can lead to delays and frustration for both businesses and end users.

Suppose you are a company that transports essential and perishable items, such as medical supplies. You'll needreal-time visibilityto the location and status of each shipment. Thanks to this, you can be sure that they will be delivered on time and in good condition.

The Circuit for Teams app allows you to track your driver's location. You can use this information to give your customers visibility.

5 tips to optimize your first mile delivery operations

We've put together five top tips to help you optimize your first mile delivery operations right away.

They include:

1. Plan an existing process and check for inefficiencies

Imagine your company relies onthird party logistics services(3PL) for first mile delivery.

Zauważasz pewne problemy podczas mapowania istniejącego procesu. Należą do nich brak komunikacji między Twoim zespołem a partnerem logistycznym, jeśli chodzi o czasy odbioru i okna dostawy.

So you experience missed pick-ups, late deliveries and dissatisfied customers.

To optimize this process, you might consider implementing a digital platform like Circuit for Teams. This will enable real-time communication between your team and 3PL.

Thanks to this, everyone will be kept informed about pick-up times and delivery windows. It can improve overall performance and customer satisfaction.

Mapping your existing process and identifying areas of inefficiency means you can take targeted steps to optimize first mile delivery and improve your entire supply chain.

2. Collect relevant data

When it comes to optimizing your first mile delivery operations, data is your friend!

Collecting and analyzing the right data can help identify areas for improvement in your supply chain and streamline logistics processes.

Think of it this way: if you don't understand how long it takes suppliers to ship orders, or how often products get damaged in transit, how can you make informed decisions about optimizing the first leg of delivery?

Collecting and analyzing metrics (such as shipping times, storage times, and transit damage rates) can help you identify bottlenecks in your supply chain and make data-driven decisions to improve efficiency and reduce costs.

And with tools like inventory management software andwarehouse managementsystems, collecting and analyzing this data has never been easier.

3. Look for processes to automate

Do you know the key to optimizing the first mile?logistics management? It's automation!

With the right technology, you can turn your spending into growth. Automating first-mile operations means greater efficiency in truck loading and shorter delivery times in last-mile logistics.

Forward-thinking manufacturers are always looking to optimize logistics and speed up deliveries.

They collect data across multiple operational and logistics phases to improve product quality and offer products at a lower cost. This helps them gain an advantage in the ruthless competition.

One way to automate processes is to audit the tasks of company employees and find ways to reassign some human tasks to automated tasks.

This generates operational savings, increases employee satisfaction and reduces high turnover rates.

You can do this by manually controlling people's working hours, asking your team for feedback, and looking for repetitive processes. Most repetitive processes can be automated today.

Assigning employees to new and more complex tasks makes them feel valued, making them more likely to contribute to the company's growth.

In addition to cost savings and increased efficiency, automation also helps to reduce errors and improve the quality of delivery services.

For example, Circuit for Teams can help reduce manual data entry, such as recording pick-up times and calling drivers to ask where they are on the route. You can track all this automatically through the platform.

Ultimately, this translates into a better customer experience. This is a win-win situation for all parties involved!

4. Optimize the warehouse receipt process

Optimizing the inbound process is critical to a smooth first mile delivery.

Without a working systeminventory trackingbecomes a nightmare and orders get confused or lost. This can lead to delays and customer dissatisfaction.

Here are some additional tips for optimizing the inbound process:

• Streamline communication with suppliers to ensure they ship accurateshipping informationand delivery date.
• ImplementbarcodesLubradio frequency identification (RFID)technology to quickly and accurately scan inventory as it arrives at your warehouse.
• Use a warehouse management system (WMS) to track inventory levels in real time and be confidentproducts are stored in the most efficient locations.

5. Re-evaluate the product packaging and label

Packaging and labeling are critical factors to consider when optimizing the first mile delivery process.

Improper packaging can damage inventory and inconsistent labeling can lead to inventory management issues.

Here are some ways to reassess your product's packaging and labeling:

• When choosing a supplier, evaluate the quality of their packaging to ensure that goods reach your warehouse intact.
• Use enough dunnage material, top and bottom load restraints, corner/edge boards and stretch wrap to prevent breakage, weight distribution issues and load shifting during transport.
• Consistently tag your products between supplier, warehouse and distribution center. This will allow you to easily track stock levels and re-order products as needed.
• If you work with 3PL, follow their labeling guidelines to streamline the in-warehousing process.

See how Circuit for Teams helps you manage your drivers and routes quickly and easily

Remember, whether you're a small business just starting out or a large enterprise with multiple locations, there's always room forstreamlining the delivery process.

Following best practices - such as using technology to automate tasks, optimizing the inbound process, and reassessing product packaging and labeling - can help you stay ahead of the competition and succeed in the long term.

And if you're looking for a tool to help you manage your delivery operations, consider thisTeam circuit.

With the latest product updates, Circuit for Teams offers even more features to help you optimize routes, manage drivers, and streamline first and last mile delivery logistics.

They includeproof of delivery (POD), dynamic stop status icons and the ability to modify routes in real time.

To tryTeam circuittoday and see what difference it can bring to your company.