Recently, final mile delivery is finally getting its time in the logistics spotlight. This is occurring for a variety of reasons, including new technology, artificial intelligence, modern optimization tools, improved visibility, and the rising costs of operating a robust, efficient, and safe delivery network. However, despite these myriad opportunities for success, execution remains the biggest challenge. For every supply chain executive who feels their organization has never been truly successful in final mile execution, there is another executive who has seen that success, but has since seen performance stagnate.
Stagnation and lack (or loss) of product adoption is not uncommon in the software world, unfortunately. If we look further into the realm of final mile delivery software, the same challenges apply. Three of the most common causes include:
- Turnover of key users, resulting in loss of skillsets
- Drifting or lack of clarity of organization goals
- Executive awareness and/or alignment
One or more of these causes are typically present regardless of the technology stack in use. For those using an optimized solution, the potential for success is there, and that efficiency and savings may well have been achieved at some point, and to some degree, but often it erodes over time.
Final mile delivery deserves its place as a critical component of a successful supply chain. Just remember, regardless of the tools available, fundamental alignment and performance tracking is every bit as important, if not more so, to your overall operational and financial success.
There is a clear path to setting the appropriate stage and structuring the final mile organization to achieve valuable, sustainable savings. While there are multiple stages along the journey, including consistent employee development and route centralization, two critical and valuable aspects of the journey are:
- Setting specific KPIs and goals
- Organizational alignment with executive oversight
Final mile delivery deserves its place as a critical component of a successful supply chain. Read the full article to learn more about factors that attribute to stagnation, which KPIs to use, and how to share information throughout the organization.
