Your First Three Steps Can Lower Your Last Mile Costs—Significantly
By Len Batcha
Technical Transportation, Inc
Gentlemen, start your cost-saving engines.
In the transportation industry, the term “last mile delivery” sends chills up a logistic manager’s spine. Not to mention unforeseen problems beyond their control.
In fact, the last mile in the delivery supply chain is a natural breeding ground for inefficiency, short-term crises and last-minute fire drills
But most white-knuckled concerns about last mile delivery have less to do with unforeseen hassles than they do with one and one thing only—cost. Estimates show that roughly 28%—and sometimes more—of all supply chain transportation costs occur in the last mile.
But you don’t have to sit back and endure the pain. Here are three tips to lower your last-mile delivery costs—and the good news is that they all begin with your very first steps.
Train Your Pick-Up and Delivery Team Up Front.
If your delivery team doesn’t know how to present and install equipment properly, your customer will look bad. And if your pick-up team is unfamiliar with the equipment at the start, you’re destined to suffer the consequences.
When complex equipment is involved, knowledgeable delivery teams aren’t just something that’s nice to have. They’re mandatory. If you can’t ensure quality, you also can’t ensure future business. Start educating your drivers and installers before you dispatch product, and you’ll save countless costs from a poorly executed delivery that could have been avoided.
Understand How to Minimize White-Glove Delivery Costs.
Without a doubt, costs are the most serious concern regarding white-glove delivery. No company can succeed long term if customers can find a cheaper way to get the same level of quality at lower prices.
But when white-glove deliveries are involved, cheaper usually translates to unforeseen (and sometimes dire) costs. That’s why it’s important to get a comprehensive—and accurate—quote up front. This approach takes unexpected contingencies into account, and provides customers with a budget you can rely on.
Pick a Logistics Company that Knows Your Business.
Delivering highly complex medical or advanced technology equipment isn’t the same as, say, transporting books or clothing. Complex cargo requires a level of care and installation knowledge that more routine loads simply don’t.
That’s why it’s important to vet your logistics provider. All transport companies aren’t created equal, and neither are all shipments. Do your diligence up front, and find a logistics company with a proven track record—one that meets your specific needs.
So, take the time to dig deeper up front. Define your requirements and establish Key Performance Indicators (KPI’s) and communicate these expectations to your final mile providers before you accept a quote. If you’re working with a competent white-glove delivery company, what looks like a higher quote usually translates to lower costs in the long run.
And lower costs without sacrificing quality always translates to satisfied customers.
For more information on how we can help you achieve your white-glove delivery goals, contact TechTrans today.