Last Mile Delivery Lessons from DriveYello CEO Steve Fanale
As consumers ourselves, we want that instant gratification of getting our purchases as soon as possible and in good condition. What most people don’t know is that there’s an army of people and various operations behind making sure that you get your item conveniently.
Steve Fanale, CEO and Founder of DriveYello, says “The biggest challenge in last mile delivery is meeting customer expectations.” Fast last mile delivery, which is delivery of items executed after a few hours or in the same day after purchase, is an innovation that retailers should look into.
We interviewed Fanale in what makes last mile delivery successful. According to him, businesses can learn a lot from start ups such as DriveYello, Shippit and Sendle in making sure that efficient delivery is part of the product offering. To keep customers loyal, there’ll be different components to it, and last mile delivery is part of it.
Here are the key takeaways from our DriveYello interview:
#1 Put a system in place to make retail stores into mini distribution centres
Retailers have to consider building a stock management system that can streamline operations. For 1 to 3-hour delivery to take place, the stock must be in store. Business employees should be familiar with the process of assisting pick up orders. In a sense, handover should be made more efficient between the business and the couriers.
Another thing to take note is that there should be available parking or drive thru’s that make it easy for pick up and delivery.
#2 One word: Convenience
At the end of it all, last mile delivery is all about convenience and making sure that it is.
It’s a convenience economy. People want to buy products and have a convenient way in receiving them. Convenience of delivery is what makes your customers keep coming back for more, thus increasing brand loyalty.
#3 Managing Client Expectations
Businesses have to consider how they’ll deliver on customer expectations. Take for example the DriveYello software that helps set expectations right for customers buying products and indicating when they want it to be delivered.
Using a platform to constantly monitor deliveries is a winning solution for the consumer and the business. You’ll have proof of delivery where tech comes into play
Effective communication between couriers and customers is also crucial. The whole essence of success in last mile delivery is to keep everyone informed and happy.
#4 Efficiency in the Entire Operations
In a general perspective, last mile delivery becomes successful if communication, managing expectations, good stock management, and dynamic ETA are on point.
There should be a clear store process internally such as having products clearly labeled and labeled correctly. Quick picking up times and handover time should be perfected on the retailer’s side. These components will determine how fast the delivery of items would be. And when it is on delivery, the business and consumers should have visibility of location and get notifications.
The faster you can deliver and the more accurate your delivery is, the more convenient your service becomes. That type of convenience that customers expect will increase your brand loyalty.
On the other side of the spectrum, the brands that didn’t innovate, or the ones that didn’t look into last mile delivery, are the ones that lost their customers.
#5 Innovations in Last Mile Delivery
There will be innovations across the supply chain, and some of these are happening already. You’ll see amazing possibilities happening on in-store stock management, logistics and transportation
There’s a clear possibility that in-store robots, driverless cars, and at-home storage will become mainstream. There will also be drones or robot delivery options, just like what this eCommerce giant is already doing in China.
Service stations or gas stations can also be turned into pick up or drop off points. Further developments in AI and machine learning will also make platforms smarter and logistics easier to manage.
It’s a pretty exciting time for logistics, and a lot is already happening.
In a Nutshell
We’re building a great industry in last mile delivery, and there’s tens of thousands of jobs for couriers in Australia.
Last mile delivery increases loyalty of consumers to businesses. More and more people will buy online as a result of the convenience that comes with this service offering.
For retailers you have to consistently refine your omnichannel strategy. If you don’t have one, you’ll be redundant in the industry and might lose your business. Follow through with augmenting your current service offering to remain agile in the future.
Steve will be one of the industry leaders speaking at New Retail ’19. Learn incredible insights from him together with thought leaders and top brands in retail. Secure your spot now at this biggest retail gathering of 2019!