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The middle mile delivery plays a crucial link between suppliers and distribution centres but despite its many challenges, it has often been overlooked. With the e-commerce boom in the recent years, more and more businesses recognise that an efficient middle mile delivery plays a key role in the whole transportation process, from the very beginning of raw material shipping to the last stage when products are delivered to customers.
In this blog post, we’ll delve into the top 4 middle mile delivery challenges and provide solutions for overcoming them. But first, let’s start with a clear understanding of what middle mile delivery is.
Middle mile delivery is the central part of any supply chain focusing on transporting goods from one central location to another, most often from suppliers, manufacturers or warehouses to fulfilment or distribution centres.
This critical stage bridges together the initial leg of transportation, the first mile, which involves shipping raw materials to production facilities, and the final delivery stage of finished products to end consumers, so called the last mile.
Middle mile delivery may involve long-distance and international transportation, including customs, where goods are often shipped in bulk.
Optimising middle mile delivery challenges can bring significant opportunities to your business, such as increased productivity, cost savings, shorter delivery times and gaining competitive advantages.
Middle mile routing inefficiency can lead to many issues, starting with extended delivery routes, resulting in delayed deliveries. This not only increases fuel consumption and empty miles, but it also raises environmental concerns and financial burdens.
Inefficient routing also jeopardises on-time delivery rates, often leading to customer dissatisfaction and missed business opportunities. It can negatively impact any industry, especially industries like pharmaceuticals and perishable food.
Middle mile delivery involves several parties, among them manufacturers, van drivers, warehouse staff and management teams, all of whom need real-time updates and should strive for a high level of communication.
When companies cannot accurately track the movement of goods, it’s difficult for them to anticipate potential delays, manage inventory efficiently and make informed decisions, which can result in overstocking or stockouts, disrupting the supply chain and impacting customer satisfaction.
Additionally, without real-time tracking and insights, middle mile delivery becomes more challenging as it’s difficult to ensure the security of the goods transported, leading to potential losses and their compromised quality.
Many businesses struggle with outdated technology systems, leading to fragmented data, poor communication and coordination, resulting in delays and errors. The lack of integrated technology hampers the ability to efficiently manage this middle mile delivery challenge, as separated systems often cannot communicate effectively, causing data silos and hindering real-time decision-making.
Ineffective inventory management leads to stockouts, overstocks, delayed deliveries and higher operational costs and it overall disrupts the entire supply chain.
Without real-time visibility, enterprises struggle to monitor inventory levels, track the movement of required goods and anticipate demand fluctuation. This lack of insight influences poor decision-making and coordination between suppliers, warehouses, distribution centres and retailers, resulting in increased operational costs.
Despite numerous challenges companies may encounter when it comes to middle mile delivery, this stage of the supply chain also presents a big number of opportunities for optimisation. If your business adopts a more strategic approach, you can greatly improve many hurdles.
The following are the key tips for optimising middle mile delivery challenges:
A well-planned middle mile delivery system is more economical for all businesses, helping to cut costs associated with handling, transportation and warehousing of goods.
Optimising routes is crucial for cutting down transportation costs and improving delivery times. By using advanced route planning techniques and technologies, your company can ensure faster and more reliable deliveries while reducing fuel consumption and operational costs at the same time. Optimised routes also minimise the carbon footprint and thus make the middle mile delivery system more environmentally friendly.
Real-time tracking systems provide up-to-date information on the location and status of goods in transit. This enables your business to better monitor the shipments, anticipate potential delays and make well-thought-of decisions.
Clear and open communication among all parties involved; including suppliers, van drivers, warehouse staff and management team, ensures that everyone is aligned and informed. Effective communication reduces the risk of errors and helps to lower potential delays. It helps your business to improve efficiency, streamline operations and maintain a high level of customer satisfaction.
As online shipping keeps growing, an efficient middle mile delivery system has become essential for most businesses. If you start implementing the tips described above, you can make a great shift forward for your business.
If you need help, Van Express is here to help. We’re one of the leading logistics companies offering middle mile logistics solutions everywhere across Europe. We help you find optimised routes within minutes and make sure your goods no longer make extra unnecessary miles.
Our logistics experts are aware of the complexities of first, second and last mile logistics, their unique characteristics and challenges. From providing flexible transportation solutions to real-time tracking, Van Express puts the customer in the first position.
Get in touch with a logistics specialist about middle mile delivery and receive dedicated support today!
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