DHL – Dr. Vidya Hattangadi

What is Last Mile Delivery?

Dr Vidya Hattangadi — Mon, 23 May 2022 00:01:13 +0000

DHL’s electric e-cargo cycle for last mile delivery

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Post Covid19 pandemic has made e-commerce a necessity of life. Clearly Covid19 has made a positive impact on this business sector. Secondly, e-commerce has positively given push to the world economy. Most organizations have the ability to give a preferred experience to consumers of brands manufactured and serviced by them. Organizations strive to give their consumers an unforgettable experience. Today’s customers desire instant gratification. They don’t like a long waiting period to receive their ordered products. A positive and well-designed delivery experience is therefore most important which improves customer retention and does wonder the marketing function. The traditional delivery methods could last from a couple of weeks to even a few months, whereas today, the delivery system needs to be instant. This is where last mile delivery concept gains significance.

Consumers and businesses are becoming more aware of the environment. Because of this consumers are being more mindful about where they shop and the impact it has on the environment and related effects. Quick delivery is one of the criteria. The impact of e- commerce on macroeconomic growth and productivity growth cannot be ignored. In previous technological revolutions increased productivity gained popularity which in the long run helped to improve living standards. One of the main areas of development of E-commerce development are usage of artificial intelligence, onsite personalization, chatbots, more options to pay and big data for offering more personalized services. E-commerce has boomed due to mobile phones.

One of the most important and the final step of E-commerce is “last-mile delivery” which involves dispatching the products to the end customers; it is the last-mile delivery that makes sure whether the product reaches the customer safely and on time. Organizations need to realise that once the customer places order, each moment matters. E-Commerce handles everything from luxury goods and services to everyday necessities. The US, which leads the world in IT and E-commerce, has had an impressive economic performance, particularly in terms of productivity growth, since 1995. According to few research outcomes, much of the acceleration in productivity grew because of structural and attributable changes induced by ICT and the Internet.

In 2020, last mile delivery became chaotic owing to the pandemic. At a time when businesses were struggling to cope up with the changing customer needs like faster and same-day delivery, challenges like contactless delivery, zero cash payments, health updates and more started rising like never before. Savvy customers want end-to-end transparency of fulfilment progress. They want to know where their order is, who is bringing it and when they will receive it. Customers want brands to ensure flexible delivery. Loyal consumers ensured that organizations gave them a flexible online buying experience with lot of discounts and convenience.

To deliver the goods at fastest speed, supply chain leaders required to revisit their last mile delivery strategy. Digitalization of core retail last mile delivery processes became a key in shaping the future of retailers, e-commerce companies, grocery chains, restaurants and manufacturing companies. Increasing consumer demand led to businesses strategizing the critical step for a quick and efficient shipment. Be it at personal residence, hotel, hospital, neighbour’s residence or retail store, the final destination of the supply chain must be covered at lightning fast speed, in order to churn out more and more satisfied customers.

Final mile is the most expensive leg of the journey of goods from the transportation hub to its ultimate destination thereby it requires resource optimization. And, it should be the key focus area.

Some usual problems faced in last mile delivery

There are a plethora of challenges that pull down overall supply chain and last mile delivery operations, thus making it most expensive.

Executing same day delivery

According to a research, more than 80% of customers today are willing to pay more for faster delivery, and keeping up with this expectation itself is the biggest challenge with last mile deliveries. Poor management of third-party logistics providers (service that enables enterprises to outsource or make use of third -party businesses to carry out tasks to completion in its supply chain) make it extremely difficult to shrink delivery turn-around-time and pose a threat to the entire shipping process.

Traditional routing models

Without having highly efficient routing tools and strategies it is difficult if not impossible to ensure timely and cost-effective execution of last mile deliveries. Traditional routing models are highly dependent on manual processes making it challenging to consider all the factors that influence chalking out highly productive routes. The idea behind modern and upgraded route planning and modelling is to maximize the efficiency of delivery routes in order to enhance the entire supply chain. Route optimization focuses on finding the most cost-efficient route for every delivery scenario.

The Impact of COVID-19

The COVID-19 pandemic disrupted existing logistics models and had a worse impact on the last mile shipping. Social distancing regulations have changed the way parcels are picked up, delivered and received. Contactless delivery had become an elementary expectation as it ensured greater adherence to social distancing compliance. Even today, some housing societies prefer contactless deliveries.

Designing delivery operations

During the Covid19 pandemic the increasing volumes of online buying and a surge in the number of shipments pressurised faster delivery time. Many businesses were struggling to find executives during peak business days when their own resources are exhausted.

Control on carbon emissions

Road transportation accounts for highest carbon emission most of it comes from passenger vehicles such as cars, vans, three wheelers and buses which contribute 45.1%. The other 29.4% comes from trucks carrying freight. As environmentalism has gained major agenda of the world, more consumers are willing to pay extra for products that are organic in nature and packaged using recyclable materials. Already few enlightened customers demand carbon-neutral deliveries. DHL Express uses electric-assist e-Cargo Cycles for deliveries in US. The international shipping services company practices using the lower-power cargo bikes for cutting 101,000 kilograms of carbon dioxide annually.

Some prominent last mile delivery carriers

Last Mile carriers are the shipping logistics companies who transport the packages from the nearest hub to an end customer at a relatively lower cost and less time. Some of the last mile carrier companies are FedEx, DHL, USPS and other local courier companies operating in specific geographic destinations.

FedEX

Fedex is one of the largest e-commerce shipping giants with a vast network of warehouses and carrier vehicles across the globe. In 2020, FedEx doubled up as the last mile delivery company by opening up last mile delivery solutions for E-commerce companies. FedEx is equipped to carry items weighing up to 68 kgs. It is also authorised for cold chain supply chain management and transportation of dangerous goods like lithium batteries and other electronic parts. FedEx can handle customs on arrival and provide expedited express shipping for urgent orders.

AWL India

AWL India has a wide network that connects multiple locations seamlessly with their logistics, supply chain management, and transportation services. AWL India was responsible for supporting vaclogix (which is a cold chain logistics service in India) during the peak of the Covid pandemic in India. Thousands of lives were benefited from their on-time, fast-paced services.

Delhivery

Delhivery is a leading e-commerce logistics and Delhivery Company helping many businesses to deliver seamlessly in areas across the country. The company has 21 automated sort centres for the goods and 2200+ self-operated delivery centres. The company was established in 2011, and is among the fastest-growing logistics companies in India, offering promising logistics solutions to businesses from various industries.

ClickPost

Clickpost is an intelligent logistics SaaS (software as a service) platform that automates last-mile delivery shipping processes for e-commerce stores. ClickPost has pre-integrated with 150+ carriers so that the deliveries can reach anywhere across the globe. It offers warehouse management, inventory management, and shipment tracking for online businesses. Like a last-mile delivery company, it sends order updates to customers and gets feedback from customers after the completion of the order fulfilment process.

USPS

USPS (United States Postal Service) is the official government-led postal service system of the United States. It offers last-mile delivery solutions to e-commerce businesses primarily in US and some other nations. It works through its massive connection of post offices across the country and also makes doorstep deliveries.

DHL

DHL is a multinational logistics and parcel delivery company that has started upgrading and enhancing its last-mile delivery game. DHL has numerous warehouses and distribution centres all over the world which allows them to push out orders faster. DHL acts as a last-mile delivery company by expediting the order fulfilment process, providing expected delivery dates, and allocating vehicles and drivers for making the drop. It also has a shipping rate calculator on its website. Most international DHL orders reach customers within 1 – 3 days. All shipping and delivery options include live order tracking. Customers are even notified on their emails and phones. DHL delivers to over 220 countries worldwide.

The ‘Made In’ label matters while buying products

Dr Vidya Hattangadi — Thu, 18 Jun 2015 01:06:46 +0000

The ‘Made In’ label matters while buying products

The consumer behavior analysts have noted through many studies that ‘Country of Origin’ has become a significant phenomenon in today’s marketing practices. The words ‘Made’ and ‘In’ conveys the strength of the product. The label ‘made’ on the packing label of the product refers to the manufacturing aspect of the origin of a product. It is often related to legal certifications, the technologies involved ingredients and techniques as well as work ethics and safety standards. And, ‘In’ refers to the origin and the geographical dimension of origin such as the location of the manufacturing process and the source of ingredients. ‘Made In’ therefore suggests information and associations that are both tangible and intangible. The ‘Made in’ tag helps consumers to make rational and emotional decision both.

In its 2005 “Year of Ideas” issue, The New York Times Magazine listed nation branding among the year’s most notable ideas. The way a country is perceived can make a significant difference to the success of its trade, business, tourism efforts, as well as its diplomatic and cultural relations with other nations. Simon Anholt coined the term ‘nation branding’ in 1996 and since then he has been working with governments to help them plan the policies, strategies, investments and advance which lead their country towards an improved profile and reputation. America has become the largest and most powerful brand in the globe; it virtually shapes the world in almost all dimensions such as national governance, policies, exports, people, tourism, economic and social status etc. In the fast growing global village nation’s branding is considered as big as federal mega-projects. Steve Silver and Sam Hill, both marketing experts define nation branding as most complex (brand) positioning problem; how can we brand a nation? A nation is as big as a Meta brand inclusive of numerous mega brands. There are so many mega activities of in a nation such as political governance, commerce, education, human resource development, environment, foreign affairs, infrastructure, environment, tourism, culture and heritage and most importantly the national character. The study of national character refers to anthropological studies after World War II.

The Japanese are known as law abiding people; the Americans are known for their grit for freedom – freedom of speech, freedom to pursue their own interests, freedom from bullying, freedom of religion, freedom of movement within the country, freedom to associate with whomever they please. The Chinese are known for their orientalism; the French are known as arty.

The country of origin (COO) specifically matter to the customers because every country has its reputation and the association between the product and the country’s expertise matters while buying products. For example Italy is known for designs, North Caroline for furniture, France for fashion and wine, the USA for entertainment, India for spices, Germany is famous for cars. Today’s consumer understands legal and safety issues sharply. Consumers today look at the ‘made in’ label with many perspectives. The ‘made in’ dependent on a combination of many factors – from heritage, to design and physical manufacturing, skilled labour, infrastructure, market intermediaries etc. Hence manufacturers can leverage a lot on the country of origin as one of their competitive advantage. A company needs to be physically present in the country; the design and patents need to have emerged from talent in the country, or the brand needs to have factories or parts of the production process in the origin nation. In the past, when it was enough to ‘borrow’ associations from a country for pure marketing purposes, today consumers not ready to accept country of origin as a choice driver unless it is bona fide.

Successful brands contribute to nation branding. Of the world’s 500 largest stock-market-listed companies measured by revenue in 2014, among the Fortune 500 companies 28 are headquartered in Germany. Well-known global brands include Mercedes Benz, BMW, SAP, Volkswagen, Audi, Siemens, Allianz, Adidas, Porsche and DHL. Thus, famous brands strengthen branding of a country. Similarly, brands across every category, like Apple, Cadillac, Clinique, Coca-Cola, Ford, Kellogg’s, McDonald’s, Microsoft, Ralph Lauren, Starbucks and M&M’s have made the USA a strong nation brand. These corporate have made Germany and America leading nation brands.

The concept of branding is viewed as ‘cultural diplomacy’ of nations. It is a somewhat new way of looking at a nation, but every nation is already a brand. Every nation is perceived in the minds of people living differently in nooks and corners of the world. Some countries are known for good things, some for bad, and others have mixed insights. Based on the different perceptions, nations in the world interact and do business with each other, either contributing to its development or encumbering it. For example Africa is associated with civil war, Iraq with suicide bombings, Pakistan for terror bombing, India for scam and Cuba with Fidel Castro’s dictatorship (though he is dead). On the other hand, countries such as the US, Canada, Germany or France, are perceived positively for decades for their sound political and economic development. Nation branding is based on the underlying hypothesis that every nation can make a good or bad brand depending on its efforts. The important thing to realize about branding a nation is that one of its ingredients is the escalating value of something that is found already within that nation.

Consumers in developing countries like India, China, and Brazil still tend to prefer brands that come from other countries. Global supply, manufacture and export of goods began to accelerate in response for lower prices and greater choice of goods. Companies became international or multinational and the rise of an affluent middle class in the USA, Europe, India, China and UAE demand more sophisticated marketing. Due to rise of consumerism, categories of goods and services became more sharply defined. And, most brands started crossing the borders of their origin. With all the great business strategies, advertising, marketing and intelligent supply chain strategies even today in the 21^st century for most of the brands, their place of origin and heritage continues to be a key part of their appeal and differentiation. Their name, identity, design and symbolism of logos or trademarks become synonymous with their country or place of origin.

We should realize the fact that Brand building in emerging markets is a difficult task. As the rapid growth in an emerging market gives millions of consumers new spending power, they eye for and are encouraged by their counterpart in developed countries to buy established brands. Marketing efforts in developing countries is very multifarious.

In 2003, when Mahindra & Mahindra launched a smartly designed sport-utility vehicle called the Scorpio, CNBC India, BBC World’s ‘Wheels’ program, and others chose the vehicle for the

‘Car of the Year’ awards in the SUV category. That was not a small achievement: The made-in-India automobile won top honors ahead of global best sellers such as the Mercedes-Benz-E-Class and Toyota Camry sedans. To M&M, which manufactures tractors in several countries as well as vehicles targeted at India’s semi-urban and rural markets, the awards signaled that it could finally take the world’s automakers head-on. Even as the Scorpio successfully battles multipurpose vehicles like Toyota’s Innova and GM’s Chevy Tavera at home, M&M has started marketing the SUV in South Africa, Spain and many other countries.

As a nation, Singapore’s stunning rise from third world to first world in a matter of 30 years was spearheaded by an intensive and rigorous closely-coordinated programme of nation branding. Today, brand Singapore attracts the investments, business, trade, tourism and talented human resources from all over the world which is helping it further to become more flourishing nation. This state is internationally known as a vibrant, safe, corruption-free place to do business. Name any of the great businesses of the world; everybody wants to be in Singapore! The vibrancy and liveliness of the nation in its culture and the fine art attracts more and more tourists. In global surveys of quality of life, Singapore regularly tops the charts.

Nation Branding is catching up rapidly: the brand must be accepted internally first, i.e domestically, meaning throughout the nation, by all stakeholders. Only then can it be effectively promoted internationally.