Av Trimble smartdelivery | Article | November 11, 2018

How Can You Compete With Amazon in Last Mile Logistics in Your Local Market?

The last mile logistics is the conclusive and generally the most costly part of a parcel delivery that starts from the retailer’s warehouse and ends at the customer’s doorstep. It has gained substantial importance because consumers now expect even faster and usually free of charge deliveries. Amazon has been continually evolving its delivering strategies for handling standard parcels. Amazon is popular for its cheap prices and low-profit margins and now it is taking some serious measures to further accelerate the delivery process.

Metro logistics, which means small sized fulfillment centers situated within the metropolitan cities is going to be the latest strategy that will drive the fulfillment network to deliver within hours instead of days. Within the next few years, the local network of fulfillment centers will be taking care of more than 50 percent of the package deliveries. For an effective shipping solution, the carriers other than the biggest players in the market will be considered. The retailers will have to collaborate with third-party logistics (3PLs). Third-party logistics can be either utilized for the whole fulfillment network to leverage their investment and expertise or bigger in-house fulfillment centers along with metro logistics can be improved by collaborating with a 3PL. Regardless of the approach selected, the end user will be benefitted with the improved last mile logistics.

It has been a truly dynamic two decades of e-commerce and it can easily be predicted what the next two decades would bring along. Many things that seem like a great challenge today will be rather streamlined in the future while making way for even more complicated challenges. It will be extremely important to keep an open mind to these challenges, to survive in the increasingly competitive market it is highly crucial to start acting on the anticipated challenges today. As ever before, Amazon will keep up with the revolutionizing practices that will keep retailers on their toes for providing their consumers with an even a better experience.

It has become evident that in order to move forward with a successful supply chain, retailers will have to conceive strong relationships with the suppliers for an even distribution of the risk. Retailers, 3PLs and specialized technology providers are required to establish a close bond to survive and leverage the potential and growth opportunities of this new realm of last mile logistics.

One needs to timely move on from the traditional fulfillment strategies because dedicated fulfillment centers have become outdated now. It is a must to add local fulfillment centers into your fulfillment strategy in addition to metro logistics. In order to keep up with the consumers’ expectations about last-mile logistics, the supply chain strategy needs to be vigorous. Although this is not an easy task to accomplish, there are a number of proven partners who can fully support in devising an effective e-commerce supply chain strategy so that you can compete with e-commerce giants such Amazon in last-mile logistics in your local market.