Given the increased shift towards online purchases across several industries, last-mile logistics has turned out to be a decisive factor in the growth of many industries and businesses.
With further technological integrations, the last-mile logistics market can cater to these sectors much more efficiently. It can help optimise resources faster, by simplifying activities such as selecting the right vehicle and assigning a delivery person without delay, thereby minimising the gap between vehicle demand and supply.
The last-mile logistics industry is growing worldwide. According to a Redseer report, the last-mile logistics industry in India is expected to grow to 6-7 billion USD by 2024. That’s a huge market size.
So, what are the factors driving growth in the last-mile logistics market in India? Find out for yourself!
Spike in Last-Mile Logistics Due to Rise in e-Commerce
Due to the easy accessibility of smartphones and the internet, we can witness a massive demand for e-commerce, including in tier 2 and 3 cities, where demand is estimated to be more than that of tier 1 cities.
The hike in smartphone usage, changing lifestyles, and subsequent increase in online orders has acted as a catalyst for the last-mile logistics market, especially for intracity logistics companies.
Last-Mile Logistics Need for Smaller D2C brands
The D2C model has become quite popular in India. The growth of small and medium-scale D2C businesses, especially during and after the pandemic, is another factor fuelling the demand for last-mile logistics.
While holding true for all businesses, customer satisfaction is a core factor driving the success of every D2C business. Such businesses just cannot grow with a sub-par customer experience. Efficiency in last-mile logistics is key for D2C businesses to have a smooth delivery experience and keep customer satisfaction high.
While more prominent brands have the resources to handle end-to-end operations, third-party last-mile logistics companies like Porter have become the saviours for smaller D2C brands to ensure seamless and quick last-mile deliveries.
Streamlining Business Process & Enhancing Customer Satisfaction
The customers of today expect everything, right from electronics, coffee, or even their toothpaste, to be delivered to their doorsteps. Businesses that adapt themselves to the changing expectations of customers thrive better. However, managing last-mile deliveries with their own staff, no matter the business size, is neither feasible nor sustainable.
That’s why businesses choose to go with professional last-mile logistics solutions to keep their operations and supply chain streamlined. This also allows them to focus more on activities that matter most to keep their business going – sales – rather than hassling themselves with operations that can be easily outsourced.
Prominent Roadblocks in Last-Mile Logistics Services
Last-mile logistics is indeed growing in India, but the market has a few roadblocks which ultimately impact the customer experience and thus the business.
The most common hurdle of the last mile logistics industry is delayed deliveries, which can increase the overall delivery cost, especially fuel cost, given the rising fuel prices. Delayed deliveries can occur due to various factors like:
- Traffic or weather conditions
- Inefficiency in route planning
- Vehicle breakdowns
In addition to these challenges, the absence of supply infrastructure — a lack of vehicles to cater to all kinds of orders and efficient drivers to ensure on-time and seamless deliveries, is another factor resulting in delayed deliveries. Another is the lack of staff strength to handle a sudden rise in orders, mainly during the festive seasons.
Not choosing modern technology for last mile deliveries is yet another hurdle for the logistics industry. The absence of real-time tracking or on-ground visibility and inaccurate location and addresses make managing orders and deliveries, especially large or bulk orders, difficult.
Given the rapid growth of doorstep delivery and the vital role that last mile logistics plays in that, it is important for businesses to plan an efficient last mile logistics network.
Conclusion
Rising demand for doorstep deliveries has made efficient last mile logistics a must-have for B2B as well as B2C businesses. Investing in an excellent last mile logistics service takes away the responsibility of building an extensive infrastructure to deliver goods by yourself in terms of setting up a team, sourcing vehicles, planning routes, etc.
A last mile logistics company, such as Porter, with features like transparent pricing, real-time tracking, a vast network of vehicles, and an efficient partner workforce, will help your business grow far and wide.
Being one of India’s leading companies for logistics, Porter has found solutions to the challenges of the logistics industry and strives to provide the best logistics service to B2B and B2C businesses across 18 Indian cities.
Experience cutting-edge technology, on-time delivery, and ultimate customer satisfaction with us. Download Porter to avail the best last-mile logistics services today.
