Saving Money On Last-Mile Costs With A More Efficient Middle Mile

The Quintessential Technology Source for Corporate Financial Professionals

Saving Money On Last-Mile Costs With A More Efficient Middle Mile

CFO Tech Outlook | Saturday, September 17, 2022

Last-mile delivery brings products directly to a customer's doorstep from a distribution center.

FREMONT, CA: Sustainability, speed, and communication have risen to the top of consumers' expectations for home delivery in a constantly developing technology-based society. A middle-mile delivery is the transfer of goods between distribution centers and fulfillment centers. In contrast, last-mile delivery enhances the experience by transporting products directly from a distribution center to the customer's door. With more stops, more route options make it harder to determine the most efficient route quickly.

Appropriating Capacity

Optimizing the middle mile provides a more effective way to deliver products. Digital pooling for less-than-truckload shipments and vehicles of the appropriate size, such as vans, box trucks, etc., can be used to accomplish this. Shippers profit from a more efficient middle mile by utilizing non-traditional modes of transportation, along with light, medium, and heavy-duty trucks and technology, to route shipments based on customer priorities such as time and cost. Companies can also make their packages move as efficiently as possible by strategically placing inventory before it is sold.

Better Transparency and Visibility

Inclement weather and other delays can be significantly reduced with the use of middle-mile delivery when it is equipped with the proper technology. With a constantly evolving supply chain, consumer expectations increase. Shippers (businesses) and consumers are interested in receiving real-time updates throughout the transit process. Shippers can track the location of their products throughout the journey by empowering everyone involved in the middle-mile supply chain, including truckers and cross docks. End-to-end communication and visibility improve the overall customer experience and reduce service issues.

Distribution of Stock

The least expensive option for final-mile deliveries is transporting packages to sorting facilities. Delivering packages directly to the final sortation center and aligning them with the nearest sortation centers allows a last-mile provider to pick them up and deliver them directly to the end customers. Packages typically enter and leave the facility within 24 hours, with minimal to no delays, resulting in the lowest costs and quickest delivery times. Shippers can obtain faster order delivery, more excellent reliability, and the lowest possible cost by utilizing a middle-mile solution that directly integrates with regional carriers and post offices.

Due to the increasing importance of last-mile delivery in the logistics industry's development, many shippers have forgotten the significance of an efficient middle mile. Shippers can significantly reduce their final-mile expenses by investing more effort into this crucial step.

Middle-mile delivery optimizes capacity, improves visibility and transparency, and takes advantage of distributed inventory to enable shorter distances to last-mile facilities and sortation centers, which will effortlessly reduce overall costs. With increased adaptability, improved communication, and faster transit times, shippers can deliver packages more quickly and with greater customer satisfaction, resulting in lower overall costs.

Weekly Brief