Customers have come to expect an unparalleled level of delivery service over the last few years. Super-fast shipping is the norm along with better security, tracking, and insurance options. Buyers are also hyper-aware of supply chain and shipping issues which makes them big on transparency; 45% of them actively search for sellers that clearly communicate delivery times¹.

For businesses, meeting these delivery expectations can be a major challenge. The final miles are often the trickiest and costliest due to multiple stops, expensive tracking technology, and increased labor and fuel prices². In fact, last-mile delivery accounts for up to 53% of overall shipping costs³.

So how do you remain profitable while ensuring the speed, efficiency, and transparency that customers expect? One of the most recommended solutions for businesses is automation. This article on Top Last Mile Delivery Trends states it well: “Technology has moved from being a differentiator to a survival factor.”  Here are some compelling reasons why automation is emerging as a top strategy for e-commerce and b2b companies who want to remain profitable while satisfying customer demands for fast, transparent delivery and service.

Automation helps you gain visibility and identify high costs and inefficiencies. Automated transportation management systems, audits, and logistics programs use advanced algorithms and Artificial Intelligence to help you analyze data and identify areas where you can cut costs and improve efficiency. Ironically, using advanced technology to understand your business is a key to implementing other technology. A recent study concluded that a lack of clear business strategy was the #1 biggest barrier to adoption for every technology⁴. 

Automation is the ultimate tool to help you streamline and reduce profit-draining inefficiencies. According to a report by Fortune Business Insights, businesses that leverage analysis technologies can expect immediate reduction in labor costs and reliance on worker accessibility, leading to faster round-the-clock delivery.  One example of powerful analysis tech at your disposal is the Logistics Advisory Services offered by LJM.  It enables you to reduce shipping costs through advanced spend analysis and data-based strategies. We’re experienced at responding quickly and successfully to changing market conditions to help you adjust and strategize for success.

Automation keeps you ahead of the competition. Did you know that 64% of businesses are investing in technology this year? ⁵ This means that many of your competitors are also investing, and the ones who aren’t will lag behind, thus opening up opportunity for your business.

Automation helps you offer value beyond delivery speed by meeting other top customer demands: green delivery, sustainability, and transparency. Customers are migrating toward strong brands who share their commitment to sustainability and eco-friendly practices. Moving toward green delivery options and autonomous delivery shows your ability to meet customer demands. UPS and FedEx are already using electric vehicles, a move that makes them a preferred Carrier for many customers⁶. And autonomous delivery through robots and drones is an option that appeals to many buyers and demonstrates your commitment to innovative, sustainable business practices.

The other big customer trend for transparency and communication of shipping times is easily managed by a  Complete Transportation Management system.  It enables you to easily obtain and analyze your company’s data to improve shipping and spend processes. Time and excessive costs are reduced while allowing you to identify dependable, over-the-road Carriers for Parcel, LTL, Final- Mile Delivery, and Full Truckload moves.

Contact LJM Group  for more ways to streamline your business, cut costs, and satisfy customer demands through advanced technology for parcel management and shipping.

Citations and Reference Links:

1 – 2022 MHI Annual Industry Report, Evolution and Revolution: Building the Supply Chains of Tomorrow – https://www.mhi.org/publications/report

Statista, Last Mile Delivery Market Size Worldwide – https://www.statista.com/statistics/1286612/last-mile-delivery-market-size-worldwide/

2 – PR News Wire, Last Mile Delivery Market 39% of Growth to Originate from North America – https://www.prnewswire.com/news-releases/last-mile-delivery-market-39-of-growth-to-originate-from-north-america–by-service-b2c-and-b2b-and-geography–forecast-and-analysis-2021-2025-301489946.html

3 – Business Insider, Last Mile Delivery Shipping Explained – https://www.businessinsider.com/last-mile-delivery-shipping-explained

4, 5 – 2022 MHI Annual Industry Report, Evolution and Revolution: Building the Supply Chains of Tomorrow – https://www.mhi.org/publications/report

6 – US Chamber of Commerce, Last Mile Delivery Services – https://www.uschamber.com/co/good-company/launch-pad/last-mile-delivery-services