Last-mile delivery has proved to be one of the bulwarks of the modern business scenario, and when it comes to the FMCG and FMCD industry, the role that they play is quite a major one. Modern and innovative supply chains are constantly transforming the manner in which goods and durables are moved from one stage of the supply chain to the next, and it is the last-mile delivery side of things that serves as the epilogue in most cases.
Now, keeping costs in check is essential for any business that wants to maintain its bottom line, and through optimised FMCG warehouse operations, these margins can be improved noticeably, and this is an effect that makes its presence felt in the last-mile side of things as well. The following are a few pointers and strategies that can be deployed to properly optimize logistics costs in the last mile, something that is bound to have a positive effect on profitability as well.
The use of Automation in Route Optimization
The route that a last mile delivery vehicle takes doesn’t just have an effect on the costs involved, but the overall CX as well. While routes used to be roughly planned out by the drivers earlier, effective automation and company policies can have a net-positive effect on the routes that are being taken by the drivers. In fact, it has been witnessed that logistics giant UPS have a policy in place that mandates their drivers to avoid making a left turn until and unless that’s absolutely necessary. Now, this just doesn’t make for an efficient routing in the USA, but it helps them save massively on fuel burn as well, something that has been well-tuned to the policies of green logistics. Such routings and policies, when integrated with automation, can help optimize the last-mile aspect of FMCG warehouse operations.
The use of electric vehicles
In this day and age, EVs have evolved to be the talk of the town, and while Teslas and Rimacs may have turned out to be modern favourites, an EV revolution is taking place in the last mile transportation solutions space as well, and the best part is that it stands to optimize costs and the principles of green logistics immensely. Something like Edel by Mahindra Logistics has set a benchmark when it comes to the use of EVs in this space. These three-wheelers aren’t just helping save on fuel costs but through effective technological integration, they are improving the overall CX of the delivery processes as well.
FMCG logistics operations are transforming rapidly in the manner in which they carry out their operations, and such pieces of automotive technology are catalysing an efficient and green logistics scenario better than anything else.
Conclusion:
According to Shipsy, the size of the overall last mile delivery service in India will reach 6-7 billion USD by 2024, and this goes a long way in indicating the essentiality of this process. Through the implementation of modern technological developments and mobility solutions like edel by Mahindra Logistics, companies can make the most out of the aforementioned strategies of cost optimization in the FMCG and FMCD industries.