|
Increasing delivery challenges is leading to a rise in end-mile shipment costs for logistics businesses. There are some following costs that associated with last-mile delivery. *Fuel Cost:-Expanding into new markets will increase fuel prices due to larger delivery networks and increased fuel requirements, making fuel expenses volatile.*Labor cost:-Labor costs are a significant expense, accounting for half to two-thirds of the overall cost of last-mile delivery. *Maintenance Cost:-Vehicle efficiency is determined by maintenance costs, which can increase due to long-distance travel or constant running, leading to higher end-mile delivery costs. *Delivery Equipment Cost: -Certain deliveries require specific arrangements, like expiring vaccinations, which can be costly if end-mile delivery services use expensive equipment. *Storage Cost:-Last-mile shipping businesses, especially in healthcare, food, and grocery industries, face storage utilization costs due to driver waste, leading to increased fuel and labor costs. Parameters that affect Last Leg Delivery Costs:-*Same day delivery:-The increasing demand for fast shipping and same-day delivery has put businesses under pressure to optimize delivery routes and activities, potentially leading to increased costs. *Failed Delivery:-Failed deliveries increase mile delivery costs, impacting distance and expense. Some products require extra attention, handling, and security, leading to higher costs. *Free shopping:-Online retail purchases demand free shipping, but businesses face challenges in delivering products on time and minimizing transportation costs. *Unpredictable deliveries: - Last mile deliveries can be significantly impacted by sudden changes in route maintenance or traffic congestion, leading to increased delays and increased logistic operation costs. Proper implementation of last leg delivery in ecommerce businesses can save time and money.
|
