5 Tips on How to Optimize and Control Last-Mile Delivery Costs

5 Tips on How to Optimize and Control Last-Mile Delivery Costs

Posted on: April 13, 2021 Posted by: Admin

Who would not love a same-day delivery of their online order? With the need for fast delivery and orders increasing every day, the delivery business has to devise effective ways to optimize last mile delivery and its associated costs.

Last mile delivery costs are the business investments infused into the last stages of delivering the goods from the distribution center to the customer. Businesses should understand that this is an essential part of the delivery cycle, as it directly involves the customers. Therefore, last mile delivery management plays a crucial role in customer satisfaction. Executing a proper last mile delivery method with effective tools will help businesses build brand loyalty and also help in creating an identity for start-ups. Failure to do so can result in monetary loss, damage to brand reputation, and drops in customer satisfaction rates.

How Do I Optimize Last Mile Delivery Costs?

Enhance Fleet Visibility

Transparent fleet management is the first way to optimize last mile delivery costs. A proper last mile delivery management tool can help companies track, monitor, and establish uninterrupted communication with the fleet team to avoid unnecessary communication gaps. Real-time tracking of the vehicles can help companies provide constant updates like location and ETA of delivery to their customers.

Real-time Vehicle Tracking

As mentioned above, real-time tracking of the delivery vehicles can help the companies calculate accurate ETAs of customer orders. When customers are provided with better, more transparent ETAs, they are better able to prepare. Real-time tracking also eliminates internal issues and delays due to traffic and climate, as the software forecasts the condition of roads assigned for deliveries. Companies can also track the performance of drivers and teams involved in the last mile delivery process, keeping many more customers happy.

Implementing Route Optimization

Optimizing for the best possible and the most fuel-efficient route to for deliveries is important for any successful fleet business. Factors such as fuel cost, vehicle running time, and the delivery's urgency are considered in finalizing delivery routes. Additional factors like traffic patterns and the number of stops to the destination also help bring down the fuel cost and delivery time. With vehicle GPS tracking, unexpected traffic conditions are predicted, and fleets are re-routed accordingly. Dynamic route optimization helps companies integrate new orders into already planned delivery routes instantly. Likewise, route optimization software performs automatic reallocation of orders to other drivers in unexpected scenarios like breakdowns.

Active Customer Engagement

Customers always appreciate updates on the status of their ordered goods, and maximum control over the delivery location and ETA. When customers select their desired delivery time, companies can understand the urgency of the delivery and plan their dispatch accordingly. This also eliminates the return of goods due to customer unavailability. Additionally, real-time updates on the shipment can be sent periodically to the customers via SMS and emails so that they are well prepared in advance.

Maintaining Data

Maintaining sufficient documents regarding dispatch, delivery, condition of the goods, payments, and customer's signatures as proof of delivery is crucial. Uploading these documents into the fleet management software integrated with the customer support system will help to resolve customer queries regarding the shipment anytime. Capturing this data digitally is the best way to manage and maintain these proofs efficiently and eliminates unnecessary paperwork and physical storage space.


Last-mile costs can be controlled with a perfect route optimization and fleet management tool in place. This will significantly help the delivery business to reduce fuel costs considerably and also deliver goods on time. Happy customers all along the road of delivery.

Bmobile route optimization and fleet management software have been behind the success of many delivery businesses. Get in touch with our experts and optimize your delivery business today.

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