Last Mile Logistic
The term Last Mile Logistic refers to the logistics of transporting goods on the last leg of the journey the goods take on their way to the customer.
Brief description
In the course of transportation execution, the „last mile” is very often the most expensive. Because on the last leg of the goods„ journey to the customer, deliveries lend themselves very difficult to be collected and put together, so that the costs in this area are most often more than proportionate. This problem is a result of the usually small delivery volumes, which often consist of only one order, and, on the other hand, the staggered delivery points, since each order must be delivered to a different address. Typical operators handling ”last-mile" deliveries include letter and parcel service providers, in-house delivery services, mail-order vendors, furniture dealers and pizza delivery services, among others.
Methods
- Pragmatic implementation
In this case, centrally received orders, as in the case of pizza suppliers, are forwarded to the nearest branch, where the order is processed according to the list and, finally, after a telephone consultation, delivered. The advantage of this option is the deliberate abandonment of the IT system. The service must work through a well-structured organization.
- Restrictions on deliveries per section of time and region
In the case of this method, through a system of collecting orders via the Internet or a call center, a certain number of orders are accepted for a certain region at a certain time. In this way, there will not be too heavy an order load on transport resources. The trips, thanks to the use of software for their planning, can be optimally compiled.
- Ordering deliveries in frame runs (Milk Runs)
In this case, a framework trip plan serving delivery areas is created in advance. When splitting orders, the customer connects to a trip planning server via the Internet or a call center, which provides delivery proposals for his locality depending on when the vehicles will be in the area. The customer selects one of the proposals, and the software orders for the appropriate date.
