Last Mile Delivery Optimization for the World’s Most Challenging Routes

October 18, 2022

Booming e-commerce sales and demand for home delivery have permanently changed the landscape for shippers and transportation providers. Large online retailers set massive expectations for speedy delivery and real-time visibility, creating a customer base that demands products on their doorsteps in hours, not days. Increasing consumer expectations for fast, accurate deliveries requires retailers and transportation providers to consider last mile delivery optimization for the world’s most challenging routes.

Last mile delivery comprises an more than 50% of total shipping costs (and growing!). Last mile presents numerous challenges for routing. High volumes often mean many stops along a route, and stops are more susceptible to minor disruptions like traffic delays. With consumer expectations for on-time delivery at an all-time high, even the smallest, unpredictable delays can result in reduced customer satisfaction and poor brand sentiment.

Overcoming these challenges with dynamic route optimization is critical for today’s shippers and transportation partners.

Last Mile Delivery Optimization for Routes

Last mile delivery optimization ensures that shippers and providers can meet customer demand for visibility and efficiency, while simultaneously managing and offsetting transportation-related expenses.

Last mile delivery is strategically positioned to help improve brand sentiment, create repeat customers, and boost sales, so optimization of the last mile is crucial for long-term success in today’s highly competitive retail market. There are countless ways to customize last mile delivery route optimization to meet a company’s specific needs – consider these examples:

Learn more in our Path to Route Optimization infographic.

Same-Day and Courier Services

Demand for instantaneous order fulfillment is best highlighted by the growing same-day delivery and courier industries. With companies offering guaranteed delivery within hours for most larger urban markets, the need for flexible, adaptable routing is critical.

Dynamic route optimization engines can add and prioritize stops within existing routes to maximize efficiency and meet strict courier parameters for on-time delivery. With advanced routing technology, drivers are notified immediately of any changes in their route without relying on phone calls from dispatch to make adjustments.

High-Value Cargo and Theft Deterrence

Route design can take many forms, but hauling high-value cargo requires enormous care and planning.

Route optimization engines offer the ability to set advanced constraints to deter theft and keep high-value cargo safe in transit. This often includes complex route planning to ensure drivers are routed differently each day to avoid pattern detection. Forced returns to a warehouse may be required mid-route to offload cargo as needed.

Regional Capacity Constraints

Hauling overweight or over-dimension cargo presents challenges for logistics teams, particularly when that cargo is crossing state lines. Final mile route optimization helps ensure that shipments are within regional capacity limits when they hit a new jurisdiction, without manual calculation or planning.

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Last Mile Delivery Route Design with TMS Optimization Engines

With the increasing demand for speedy home delivery, today’s retailers and transportation partners recognize the importance of last mile planning and route optimization.

TMS optimization engines simplify routing processes and minimize the need for manual routing, with advanced systems for evaluating historical route patterns and predicting the efficiency of alternate routes. Advanced route optimization systems can also recognize and adapt to changes in the delivery environment, adjusting routes in real-time to maintain the highest efficiency level.

MercuryGate TMS optimization delivers world-class routing design tools for the most complex last mile routes. MercuryGate offers innovative user dashboards, digital tools, and data-backed mobile apps for drivers, carriers, and customers to access live status updates and reports with the click of a button.

These tools provide the ability to instantly acknowledge new pick-ups, adjust delivery schedules, and adapt to changing environmental conditions. Push notifications keep everyone in the network on the same page to ensure seamless delivery for every customer en route.

As a result, fleet managers can save big with first and last mile optimization.

To learn more about how TMS optimization engines are revolutionizing the world’s most complicated routes, download our eBook: Route Design Made Easy.