How 3PLs Are Revolutionizing Last-Mile Delivery for eCommerce in 2024

A recent Economics Times report says that the demand for small warehouses within the city limits is going to rise in the coming years. This is because the demand for same-day delivery of products such as food and grocery items increases rapidly. Therefore, the demand for efficient last-mile delivery has also increased. Now, companies are working to store inventory closer to their buyers to reach them faster to improve the quality of delivery.

This indicates that eCommerce sales are at an all-time high in the country. The lockdown during the COVID-19 pandemic has increased this growth. Companies are now looking to store products in small distribution hubs instead of warehouses. eCommerce sellers are also looking to combine with 3PL providers to optimize operations and improve functioning. This will help the companies improve their last-mile delivery operations.

But how will these 3PL last mile delivery providers help improve last-mile delivery operations? Well, if you look at it from above, fulfillment centers just store, pack and ship your products. But, when you look deeper, their role is much more than that. Having a 3PL provider can accelerate the fulfillment process for your business with streamlined operations and dedicated technology. 

Let us go into the details about 3PL providers and last-mile delivery operations and how they can improve it.  Before that, it is important to understand the specifics of last mile logistics trends. 

What is Meant by Last Mile Delivery?

Last mile delivery or the last mile shipping refers to the last delivery process that connects the distribution centre to the customer. This includes the part where the delivery executive carries the product to the customer and delivers it.

Even though it is the last mile, the delivery usually takes place from a central hub to the customer’s home. This can be within a few kilometers or go up to a hundred kilometers depending upon the location of the hub and the delivery address. 

Currently, the last mile sector has not seen considerable intervention with technology. But with changing times and operation techniques in the last mile, delivery operations are also evolving.

The Relevance of Last Mile Logistics Solutions

The last mile logistics process has become an essential component of eCommerce as it decides the final fate of the customer experience. And optimizing last mile logistics solutions can help companies reduce costs and decrease delivery time. Since it is the last leg of the entire eCommerce supply chain operations, it can make or break the whole chain.

Last mile logistics operations are the most affected by factors like traffic, human errors, delayed deliveries, weather, etc. If not done correctly, they can end with a poor customer experience and delayed delivery. 

Another aspect that significantly impacts last mile operations is the safety of the products. The products need to be shipped in a manner that they remain safe and tamperproof when they reach the customer. Hence they need to be routed in the most optimum method to avoid any mishaps. 

Key Benefits of Third-Party Logistics Services

If your supply chain distribution is partnered with any third-party service, it can make your business more scalable and cost effective. It can also free you from the complexities of planning and managing a warehousing strategy. Let us explore some of the advantages:

1. Saves on Operational Costs

A 3PL provider can be highly benefited when partnered with third party logistics services as they reduce costs without compromising quality. One major benefit of working with a third-party logistics provider is the savings on expenses of logistics last mile transportation. The access to a broad network of carriers makes 3PL providers negotiate better shipping rates by maintaining industry shipping standards.

2. Experience in Planning and Execution

If you have a 3PL partner, you will have access to warehousing experts who handle your business operations efficiently. These professionals coordinate all aspects of logistics, from transportation and documentation to compliance and best practices. Their experience makes the most of your existing resources to make sure that everything is optimized for the increase in profit.  

3. Enhanced Supply Chain Management

When the experts are taking care of daily warehousing tasks, your management team can focus on other areas of your business. With decreasing internal resources from warehousing duties, your company can concentrate on other critical aspects of the supply chain. This leads to more efficient and effective overall management.

4. Positioned for Growth and Expansion

When logistics—a key part of the supply chain—is managed effectively, your business can focus on growth. A 3PL partner allows you to respond quickly to seasonal demands and customer orders, setting clear fulfillment goals that they help achieve. They also provide flexibility during unexpected spikes in demand, managing everything from workforce adjustments to transportation needs.  

5. Proactive Risk Management

A 3PL provider is equipped to handle any disruptions that may occur during the shipping process. With their extensive experience managing challenges, they ensure minimal productivity loss by keeping all stakeholders informed and ready with contingency plans. This quick and effective response to unforeseen situations sets them apart as reliable and valuable partners in logistics management.

6. Optimized Network

A third-party logistics provider focuses on maximizing supply chain output with minimal capital investment. Their wide-reaching network, which includes shipping companies, skilled labor, fleet contractors, and more, creates an interconnected system that helps reduce business operation costs and provides access to reliable supply chain solutions.

7. Enhanced Customer Satisfaction

We all know that the success of any business depends on customer satisfaction. So, it is always important to focus on how customers receive your service. The partnership with a 3PL provider gives timely deliveries that improve customer satisfaction for organic growth and new customers.

How Can a 3PL Fulfillment Improve Last Mile Delivery Operations?

Third-party logistics and fulfillment providers can help optimize the last mile delivery operations significantly. With skilled labor and trained staff, they can accelerate the process before last-mile delivery operations and eventually lead to a faster delivery operation. 

Let’s look at other aspects of associating with 3PL providers that can be beneficial for your eCommerce business’s last-mile delivery. 

1. Products Stored Closer to Buyer

The main advantage of storing your products with a 3PL fulfillment provider is the choice of storing products closer to your buyers.

If you have your product store closer to your buyers, you can arrange for faster delivery and handle returns more cheaply. It will help you reach the buyer quicker and simplify the complexities of last-mile operations. 

2. Reduced Delivery Time

Once you store your products closer to your buyer’s delivery location, you can pick, pack, and ship them faster. This will result in reduced delivery times and costs. For example, if your business is situated in Delhi, and you want to ship products in Kerala, a 3PL provider with a warehouse in Thiruvananthapuram can help you deliver products with a faster TAT. Moreover, if the product is stored closer to buyers, factors like weather, traffic, long delivery routes, etc. will not affect last-mile delivery as much.

3. Wider Reach

3PL providers come with a broader reach. They have many more serviceable pin codes than a single carrier as they have tie-ups with multiple courier companies. 

This provides you with an extensive reach across the country and into regions that are difficult to reach with only a single delivery force. For example, Shipway Fulfillment ships with 11+ ecommerce courier partners to help you reach your customers in the fastest manner possible at the best price. 

4. Powerful Delivery Network

With experienced professionals and a robust network spanning across the country, you can rely on 3PLs to connect you with your shipments’ best delivery partner. A courier partner that might deliver successfully in the northern zone might fail in the southern zone. A robust delivery network can help you leverage different courier partners’ capabilities and play on their strengths to make sure you avoid last-mile delivery challenges and reach your customers on time. 

5. Experienced Staff

Lastly, 3PL providers come with an experienced task force with prior experience in delivering products faster and with the best quality. In a country like India, delivery executives must be extremely cautious as several lanes can confuse anyone.  With an experienced delivery staff, you can avoid such problems as they have experience choosing the best routes for every shipment and, more importantly, they know their delivery areas properly.

In-depth knowledge of routes and transportation, you can avoid unnecessary delays and provide customers with a delightful delivery experience. This will also help you reduce RTO by a large margin. 

Conclusion

Partnering with a reliable 3PL provider like Shipway, can significantly enhance your last-mile delivery operations, helping you meet the growing demand for faster, more efficient deliveries. Shipway’s shipping aggregator solution simplifies the logistics process by providing access to multiple courier partners, ensuring that your products reach customers in the fastest and most cost-effective manner possible. With benefits like reduced delivery times, an optimized delivery network, and access to experienced staff, Shipway can streamline your logistics, ensuring customer satisfaction and boosting your eCommerce business’s success.

As eCommerce continues to grow in India, optimizing your last-mile delivery through third-party logistics is key to stay ahead of your competition in this crowded market. Whether you’re an eCommerce seller or a business owner looking to improve your order fullfillment, now is the time to explore the benefits of partnering with Shipway’s logistics aggregator for efficient last-mile logistics.

You may also like...