Crowdsourcing: Solving the Last-Mile Delivery Challenges?
Are you facing bottlenecks in logistics? Can a crowdsourcing platform be the solution for your on demand last-mile delivery challenges?
The last mile delivery market in North America is expected to grow just under 51 billion U.S. dollars by 2022. The exponential growth of e-commerce has retailers struggling to manage the “last mile” of delivery to the customer. In an increasingly fast-paced world, people either want 24-hour service or same-day delivery. This has led retailers and logistics carriers to experience soaring costs and growing complexity. With customer expectations at an all-time high, businesses need to meet the necessary demand of today’s customers. Across the globe, e-commerce businesses are racing to create new technologies and utilise experimental supply chain models to expedite deliveries and increase parcel volume.
What Is Last-Mile Delivery?
Last-mile delivery refers to the transportation of orders from a local distribution hub to the customer. The primary goal of last-mile delivery solutions is to hand over an order or package to the end-customer quickly, making the entire transportation experience hassle-free for everyone involved. In addition to being critical for customer satisfaction, last-mile delivery is also considered the most time-consuming and expensive part of the shipping process.
Understanding the Last-Mile Delivery Problem
The concept of drone deliveries and same-day delivery has redefined the customer experience. There are a variety of last-mile delivery challenges that an e-commerce business faces, including a shift in consumer behavior, outdated technology, high-cost of delivery, inefficiencies, lack of route optimization, and unpredictability in the distribution channel. Owing to this, it is becoming increasingly difficult for businesses to manage delivery volumes with the existing processes. According to a survey, 35% of the respondents stated that reducing logistics costs is the main challenge they have in providing last-mile delivery.
Another important factor to consider is B2B vs. B2C deliveries. Even though shipping is expensive, transporting goods to another business typically isn’t costly as they generally place bulk-orders for high-value goods. However, delivering to consumers is generally a lot pricier due to the fuel cost and time involved in reaching multiple addresses for comparatively low-value shipments. To add to this, there are other customer dynamics, such as remote locations, order returns, or even incorrect addresses to cater.
How Crowdsourcing Helps the Last-Mile Delivery Network & Its Challenges?
Crowdsourcing is gaining significant popularity in global industries. It is the practice of using the knowledge and skills of a group of people for achieving a common goal which is best applied when attempting to solve intricate problems in a streamlined, innovative manner. It’s essentially a way of looking beyond an organization’s internal capacity for problem-solving and turning the query over to a wider group of people.
By acquiring the expertise of a large group of people, crowdsourcing can help generate a wide variety of benefits for a business. A crowdsourced last mile delivery network – also referred to as crowdsourced logistics, makes use of local couriers to deliver orders directly to customers. In today’s time, people require flexibility in everything, and this is precisely what a crowdsourced last-mile delivery network helps in achieving.
The crowdsourcing model has been present within the food delivery, transportation, and hospitality sector for a while now. With the network wielding several benefits, e-commerce businesses are starting to realize the significance of crowdsourced logistics for easing their last-mile delivery issues. As with other business tools, crowdsourcing works when you implement the right strategies. Otherwise, it can compromise your business plans.
Crowdsourced Logistics – Benefits of on demand last mile Delivery
The crowdsourced model started with ride-sharing, but it’s now being adopted across various verticals to address issues of efficiency, cost, convenience, and speed. It has empowered many organizations to scale at a rapid rate, to the point where the network has revolutionized several industries. By harnessing a crowdsourced network, e-commerce businesses and consumers can directly connect with local, non-professional couriers who use their own transportation to make deliveries. Following are the benefits of the crowdsourced last-mile delivery method:
A Streamlined & Fast Process
To put it simply, delivery logistics are complex. Several organizations use crowdsourcing for their last-mile deliveries as it allows them to get packages to the end-customer in a hassle-free manner. On-demand delivery solutions also allow retailers to satisfy their consumer demands, as scheduled delivery ensures packages are delivered when someone is available to receive them. This eliminates the additional cost and time involved in making multiple delivery attempts.
Driven by Technology & Lowered Costs
Another perk of crowdsourced delivery is that it is completely digital. In the same way that ride-sharing drivers make use of their own cars, contracted couriers provide their own transportation to make deliveries, usually from a retailer’s hub, and are generally paid per shift. For companies, this means not bothering with fleet management, employee benefits, or warehouse operations – therefore eliminating complicated logistics and high costs associated with on-demand delivery.
Increased Transparency for Customers
The benefits of the crowdsourced delivery model also extends to the customers. It offers more control over the shopping experience, as customers can choose the time of delivery. It also fulfills consumer demand for speedy deliveries and increased visibility of the entire process, given that consumers can track their packages. Moreover, customers are also offered real-time updates on their orders through SMS text alerts and push notifications.
An on Demand Last Mile Delivery Solution – The Approach of Market Leaders
The last mile delivery problem has been resolved by market leaders, namely Amazon & Uber. A revolutionizing force for the logistics and supply distribution channel, both market visionaries have their own crowdsourced delivery system – Amazon Flex & UberRush.
The systems allow local couriers to use their own vehicles to deliver packages for both Uber & Amazon customers. The delivery agent essentially performs the ‘last-mile delivery, which means the courier helps deliver packages from regional hubs to end-customers. Both systems offer a promising service-quality, as they provide real-time tracking with fast-delivery.
Build An On Demand Last Mile Delivery Crowdsourced Platform – Choose ODTap
If you’re looking to leverage the benefits of last mile delivery, consider using a crowdsourcing platform for your e-commerce business. We, at ODTap, are experts in building custom performance-intensive on-demand solutions based on your industry and requirements. Our on-demand delivery app enables customers and suppliers to keep track of deliveries in real-time – while offering route optimization guidelines to delivery agents. With years of experience in helping e-commerce businesses scale up, our team guides you through the entire process, be it designing the platform or offering assistance post-launch. So, get in touch with us for creating an on demand last mile delivery app.