Last-mile delivery is that final segment in the logistics network where finished goods are transferred to the consumer or business that ordered and purchased them. It seems like an easy enough concept, but the devil, as usual, is in the details. Last-mile delivery is historically very inefficient and requires a higher percent of cost compared to other areas of the transportation process—up to 40 percent of the total transportation cost can be weighted in the last couple of miles of delivery.
Vietnam Contemporary Challenges in Last Mile Logistics
1 Delivery Cost – Last mile delivery cost is the large cost on E-Commerce operations in Vietnam. 85% customer request for COD. COD service cost are quite high. How to decrease overall COD processing costs and how to encourage customers to use pre-payments or at the door digital payments. 2 Delivery Visibility – Tracking code is not good enough for today E-Commerce customers. Want to know the parcel on a real-time map like Uber. Enhance customer experience on the last mile delivery. What are the trends in this market and how could the industry work towards real time tracking. 3 Faster Delivery – Customers do not want to wait for few days to get what they purchased on line (Customers’ expectation is growing). How do we increase operations efficiency (sorting, pick up, drop off parcels) and decrease delivery time on the last mile delivery? 4 Customer physical address and attitude – In correct address, difficult to find, narrow alley for small truck to access with bulky items, change in mind, no one at home to receive orders --- these contribute to higher cost and time consuming. Are there maps which highlight potential delivery risks and how could we identify potential issues upfront.
5 Customer Proximity – Locations where it is convenient for customer access to pick up, drop of, return items, paying COD or event COD installments. This also will help rural/remote area customers to received their parcels easier. Safe time on the last mile delivery.
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Reference of previous Forums by Vietnam Supply Chain: https://youtu.be/4wu38bH_3zE www.vietnamsupplychain.com