At ORTEC, we believe that optimizing the last mile is quickly becoming a strategic necessity, not just a logistical challenge. For organizations looking to get ahead, moving from reactive scrambling to forward-thinking planning, embracing innovative tools is essential. The right solutions drive efficiency and maintain the level of service your customers expect. 

Making Sense of Supply Chain Chaos

Real-world disruptions – like changes in tariffs or port bottlenecks – don’t create supply chain issues; they expose them. Chronic problems such as driver shortages, fill rate discrepancies, and inventory gaps have plagued the industry for decades, leading to costly redeliveries and posing safety risks. Addressing these issues is essential for transforming the last mile from an operational pain point to a competitive advantage. 

The Liability of Legacy Technology

Despite being a vital segment of logistics, many companies rely on outdated routing tools that simply digitize old processes. With tools often two to four decades old, these systems exacerbate inefficiencies rather than resolve them. Modern logistics demands an overhaul, preferably through modeling-based optimization, which integrates AI into fresh and robust systems rather than as a superficial add-on. 

The Silent Killer of Over-Servicing

Frequent, unjustified deliveries drain resources and inflate costs without enhancing service. To counteract this, companies must reassess service levels and align them with actual demand. By optimizing delivery frequencies, firms can reduce costs, enhance service consistency, and elevate customer satisfaction, while simplifying logistical complexity. 

Align Strategy with Execution

For logistics teams, whether part of small distributors or large global entities, aligning delivery routes with pricing, sales, and capacity is crucial. Fragmented decision-making leads to inefficient expansion and underutilized assets, preventing companies from achieving optimal logistics performance. A cohesive strategy that encompasses all facets of supply chain operations ensures maximized utilization and profitability.

The Transformative Power of AI with Clean Data

While AI holds transformative potential for real-time routing and predictive planning, it is only effective when paired with clean, accurate data. Strong master data hygiene is necessary to prevent AI from automating bad decisions, which can result in substantial inefficiencies. Forward-thinking companies are prioritizing data quality as a foundational step before deploying advanced AI tools. 

Embrace the Transformation

The challenges faced in final mile logistics are neither new nor insurmountable. With strategic adjustments and technological innovation, companies can turn this vulnerable segment into a powerhouse of efficiency and customer satisfaction. At ORTEC, we invite supply chain leaders to embrace this transformation – moving from outdated methodologies to proactive strategies grounded in AI and modeling-based optimization. We’re redefining last-mile delivery and unlocking new avenues for growth and success.

Tune Into MarketScale

Get ready to revolutionize your supply chain strategy. Tune in to ExpertsTalk by MarketScale. Host Daniel Litwin, the unmatched Voice of B2B, is joined by Mat Witte, CEO of ORTEC Americas. Together, they explore the latest topics shaping logistics. This episode unpacks why the old ways of routing no longer meet the demands of modern logistics, and how modeling and AI technologies are setting new standards for efficiency and precision. You’ll hear practical insights that can help bring out the best in your last mile operations.