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Last-mile logistics: definition and challenges for companies
Last-mile delivery means the process of transporting goods from the distribution centre to their final destinationusually the consumer's home. This is a key element in the online shopping experience, and perhaps a determining factor in consumer satisfaction.
It represents 20 % of the total cost of the delivery chain. To take one example, Amazon has conditioned consumers to want free and fast delivery in two days or less, which has put pressure on rival companies to offer expedited shipping options and step up their work on the last mile. It's no longer a secret that drivers and especially businesses are increasingly attracted to a total or partial electrification of their vehicle fleet. The various advantages, such as environmental bonus or the conversion premium push them to take the plunge. So it's clear that in big cities like Paris or else Lyon for example electric vehicles are increasingly used for deliveries (parcels, goods, etc.).
Also worth reading ⇒ Electric vehicle fleet: the complete guide
Electric cars for business
Deliveries have a significant environmental impact, since they are responsible for 25 % of greenhouse gas emissions. Transport accounts for 31 %. Not insignificant statistics.
For companies, having electric vehicles within their vehicle fleet can offer many advantages for last-mile logistics. Here are a few examples:
- Low operating costs electric vehicles have lower running costs than petrol vehicles, particularly with regard to fuel and maintenance costs.
- Low greenhouse gas emissions : electric vehicles produce 63 % less CO2 emissions than internal combustion cars when they are used, which can be advantageous for companies that are concerned about their environmental impact. carbon footprint.
- They do not produce any noise when they are in operation. significant advantage for deliveries in noisy urban areas.
- Low maintenance: electric motors require less maintenance than petrol engines, which can significantly reduce servicing costs and increase vehicle availability.
Also worth reading ⇒ How do you maintain your electric car?
Access to restricted delivery zones electric vehicles may be authorised to access certain delivery areas that are closed to petrol vehicles due to air pollution restrictions.
Consumers, aware of and demanding a better customer experience
A study of the Fevad (Fédération e-commerce et vente à distance) shows significant growth in e-commerce sales. 129 billion eurosor an increase of 15 % over 2021. This is largely due to the health crisis. The habits of the French have changed, and ordering on the internet has become commonplace.
What's important in last-mile delivery is that it is done efficiently and reliably, to avoid any inconvenience (e.g. delays, delivery errors). There is also the anxiety of not being delivered on time, particularly during key periods such as the festive season, birthdays and Christmas.
For international orders, delivery times are sometimes longer. And if the customer hasn't necessarily checked the delivery details, they may be surprised by how long they have to wait for their parcel to arrive. Tracking the parcel in real time therefore makes it easier to be informed and patient. Many companies use real-time tracking technologies to ensure accurate monitoring of each delivery and to communicate with consumers about the status of their order. These solutions, known astrack and trace are online tools that track the shipment and reception route in detail, using a universal tool that centralises data from numerous courier and transport companies in one place.
Offering different delivery options to meet consumers' preferences and needs, such as home delivery, collection point or in-store delivery, is also fundamental. Finally, it is crucial to ensure that parcels are delivered safely and in good condition, to guarantee consumer satisfaction. Customers no longer hesitate to order more and more. They are also increasingly concerned about environmental issues, and more and more of them are sensitive to global warming, it is even the number one concern of the French, especially young people (64 %)according to a study by theADEME in 2019. Customer satisfaction is no longer just about short delivery times. According to the same LSA study, 8 % of French people surveyed had already tried eco-responsible delivery. This figure even climbs to 19 % for the most regular customers, who have their food delivered at least once a week.
The French are therefore demanding when it comes to customer satisfaction.
But they are also increasingly aware of the issues surrounding global warming. They want to take action. For transport operators, there are ways of adding value in this low-carbon delivery segment. They can choose electric vehicles. This is particularly relevant for last-mile logistics in dense urban areas. Road traffic is one of the causes of fine particle emissions. All these factors are good reasons for choosing electric commercial vehicles.
The challenge of the last mile for professionals
The main challenge of last-mile delivery is that delivery drivers carry many small parcels to many different addresses, creating more stops, more complicated routes, more idle time and more time on the road for drivers than in any other phase of the shipment. Not to mention the fact that companies need to have a large fleet of drivers to deliver sometimes a small number of parcels, because of the time it takes to deliver a single parcel.
For the company, Last-mile delivery is important because it can have a significant impact on the final customer experience. If delivery is made quickly and efficiently, this can help to increase customer satisfaction and loyalty. On the other hand, if delivery is delayed or there are transport problems, this can lead to customer complaints and frustration. It is therefore important for the seller to put in place an effective last-mile delivery strategy to ensure that products are delivered quickly and in good condition to their recipients. This can include using different means of transport (e.g. delivery vehicles, bicycles, drones, etc.), setting up real-time tracking systems and working with reliable third-party carriers.
Commercial vehicles: delivery of 100 electric %s
Already used by many companies for their last-mile deliveries, these electric commercial vehicles are helping to reduce emissions in urban areas. Here's a look at the specific features of three electric vehicles in the LCV range.
Renault Kangoo Van E-Tech
Le Renault Kangoo Van E-Tech is an electric utility designed for professionals. It is equipped with a battery lithium-ion 36 kWh which allows it to have a autonomy up to 270 km according to the WLTP certification cycle. It is equipped with a 100 kW (136 bhp) which enables it to reach a maximum speed of 135 km/h. It's perfect for city deliveries, thanks to its urban agility, tight turning circle and small size. Its side and rear opening doors make it easy to load and unload. Available in two versions, Renault is marketing this model in its standard version, which can accommodate up to 3 people and has a load volume of up to 4,6 m³and the Maxi version, which can accommodate up to 5 people and has a load volume of up to 6 m³.
Long-term leasing : 558 excl. VAT (37 months / 25,000 km per year)
Fiat e-Ducato
Le Fiat e-Ducato is an electric light commercial vehicle. This electric version of the petrol Ducato is aimed at professionals who want a long range and a host of cutting-edge technologies for safe, comfortable driving. The Italian brand is powered by a 136 c. Its lithium-ion battery of 47 kWh gives it a range of around 235 km and 370 km for its version 79 kWh. Le e-Ducato is available in three different lengths and heights, with a useful volume of 10 m³ to 17 m³ and a payload of up to 1900 kg, so you can choose the model best suited to the needs of each company, depending on its field of activity.
Long-term leasing : 695 excl. VAT (60 months / 10,000 km per year)
Opel Vivaro-e
Le Vivaro-e is suitable for use in both urban and rural environments, and is ideal for businesses that need a reliable, efficient vehicle to deliver goods or carry passengers. It has a range of up to 330 km on a single load and a payload capacity of up to 1,226 kg. Motorisation, Opel sound team Vivaro-e an electric motor of 100 kW and is equipped with a 50 kWh.
Long-term leasing : 590 excl. VAT (49 months / 25,000 km per year)
How to improve last-mile logistics
It's clear that for any business, the last mile is a fundamental stage. Despite its simple and clear objective of delivering items to the end consumer as quickly as possible, the last mile is an expensive mile.
Anticipating and planning your itinerary
A poorly planned final delivery will never reach its destination on time. But with the right route optimisation solution, such as Gordon, Urbantz or even Route4meLast-mile deliveries can be made more quickly than usual. Delivery routes are optimised taking into account traffic, road conditions, distance, vehicle type and capacity.
Proof of delivery to avoid disputes
The proof of delivery verifies that the delivery has been made successfully. Drivers can easily complete the proof of delivery capture and add it to their daily delivery report. This eliminates any confusion and can prevent or reduce the number of false declarations. This proof also enables companies to prevent and avoid any ill-intentioned people.
Summarise and analyse for a better understanding
Daily delivery reports help companies enormously to understand how their deliveries are being made. By analysing the reports, companies can identify weaknesses and create opportunities for improvement in the last mile. These summaries allow key metrics to be monitored while filtering data by driver, date or route.
Understanding the importance of the customer experience
By properly planning last-mile logistics, customer satisfaction can only increase. Providing customers with a simple tracking number is not enough to make significant improvements to the customer experience. Making last mile options flexible will allow customers to tailor their experience to their needs.
In conclusion
As we have seen in this article, companies need to focus on optimising last-mile logistics. At a time when the volume of parcels or goods to be delivered is constantly increasing, they need to focus on implementing solutions that meet consumer expectations without impacting their environmental performance. Unfortunately, if delivery by electric van is perfectly suited to city centres and urban environments, one of the major obstacles is the range of electric vehicles, which remains a challenge for certain types of delivery. This is particularly the case for long journeys or in areas where the charging stations are rare.
Fortunately, there are many ways of overcoming this obstacle. car manufacturers are now offering electric vehicles with high-capacity batteries offering long range. What's more, the expansion of fast-charging networks is gradually making it easier to use electric vehicles for deliveries, in areas where this was less the case in the past.
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