Transporting goods from a retailer’s or manufacturer’s location to a central warehouse is known as first-mile delivery.
In this article, we’ll break an understanding of what first-mile delivery is, why it’s important, and what are the challenges to first-mile delivery.
What is First-Mile delivery?
First-mile delivery is the process of shipping finished goods from a manufacturer or supplier’s place to an online retailer’s warehouse of several distribution centers – the final destination before the products are delivered to the end-user.
You can say it is actually the first step of order fulfillment and requires exhaustive supply chain planning.
Although there can be different meanings for the term “first mile”
A manufacturer may define a first mile delivery as the transfer of finished items from a plant to a warehouse or distribution hub. The movement of manufactured items from a supplier’s warehouse to the retailer’s distribution center is referred to as the “first mile” by a retail establishment.
In each of these situations, the first mile of the delivery represents the initial leg of the item’s journey through the supply chain system of the specific business.
The middle mile stage, in which goods are collected from the distribution center and delivered to specific store locations, could come after this first mile delivery for retailers. First-mile delivery may be sent directly to the store site for some retailers, skipping the middle mile step.
The act of taking an item from a store and giving it to the courier who will deliver it to the customer’s home is frequently referred to as first mile delivery in the e-commerce industry. For instance, moving a product from the seller’s warehouse to the postal system. The first mile in this context primarily refers to the initial stage in the fulfillment of a home delivery order. The supply chain for the business already includes the item.
Importance of First-Mile delivery for e-commerce
First-mile delivery has a significant impact on a company’s retail fulfillment process because it is the first step in the supply chain.
It’s becoming more evident that the “first mile” is still inefficient and lacking in transparency in many areas as it is predicted that e-commerce sales are going to boom in the coming years. Ineffective first-mile delivery may have a domino effect that slows last-mile delivery by affecting the effectiveness of the supply chain throughout the fulfillment stage.
Some of these inefficiencies frequently have their origins in incorrect purchase orders. For example, if production is delayed or the incorrect inventory is delivered, it is sufficient to disrupt the rest of your supply chain, especially if you are receiving orders that depend on the upcoming shipment.
What are the Challenges with First-Mile Delivery?
1. Labeling
Labeling the goods is one of the main challenges in first-mile delivery. Most vendors utilize handwritten labels without the necessary information since they don’t realize how important it is to use the right one. The courier services subsequently encounter difficulties as a result of the inadequate information and fail to timely collect the orders. Automate label generation will aid in speeding up your procedure and helping you create an appropriate label.
2. Packaging
Packaging is a significant obstacle to first-mile delivery. The product is sent to the courier firms in an incorrect format because merchants do not adhere to packaging regulations. The material used for packing is usually either inadequate or incredibly weak. Due to this, the courier company’s first delivery step from the shop is delayed.
3. Congestion and a Resource Shortage
India is constantly busy and energetic. Naturally, there is no set schedule for the busiest times of the day. The movement of commodities from one location to another is governed by a number of rules. Planning pickups ahead of time is essential to prevent delays and halts. The absence of trained manpower that can assist in assessing the entire package at the time of pickup also contributes to delays.
4. Inaccurate and Incomplete Information
Many merchants don’t give precise information about the buyer. Due to their inability to process the order promptly without complete information, courier services are hampered by this. Additionally, the products may be detained by authorities at customs or while being transported interstate.
Conclusion
The heart of your supply chain process is first-mile delivery. For quicker deliveries and the utmost satisfaction of your customers, you must therefore pay close attention and focus on ways to make this operation more simple and fast. If you are not sure whom to trust for your first-mile deliveries, you can always trust AVG Logistics Limited.
AVG Logistics Limited is one of India’s best logistics companies and can very well take care of first-mile and last-mile delivery.
You can connect us for any of your logistics requirements.
Also Read:
How to Choose Best Logistics Company In India?
Why to Choose a Logistics Company with Multimodal Transport?
