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Contact the Central American Group to discuss last mile logistics in Central America.
In the online purchase of a product, its transportation to the buyer occurs in different stages. Thus, from when an item is sourced from a warehouse until it reaches the final customer, it has to go through numerous processes. In the world of last-mile logistics in Central America, customers are becoming increasingly demanding, and speed of delivery is always of primary importance.
In this article, we will analyze one of the critical points in package delivery in Central America. This operation is known as the “last mile.” Here, we will see what it is and why it is so crucial for the logistics sector. We will also examine the keys to its proper optimization.
What is last-mile logistics in Central America?
The last mile, also known as capillary distribution, is a parcel transport management operation focused on the final route to be traveled to deliver a package. It usually corresponds to the path that is made once a series of packages have been grouped and then distributed throughout various points in a city.
Hence it refers to the last mile because it is the final path that takes the purchased product directly to the customer or capillary distribution. After all, within the city, deliveries are made in different areas or branches.
Importance of the last-mile in logistics
The logistics of the last mile for a company are of twofold importance. On one hand, it aims to satisfy the customer as soon as possible. On the other hand, it seeks to optimize costs, both in personnel and in expenses related to transport.
This area is one in which rests the biggest problem for Central American transport and logistics companies. Bringing a large set of packages to a nearby point of final delivery is easy. A pallet truck is filled and transported. So far, there’s no major complication. However, in the last- mile logistics in Central America, a more detailed distribution is made. It is executed in many more vehicles and has other external factors that affect it, such as traffic within a city.
When working with smaller volumes in Central America, it is much more difficult to calculate the cost structure of these kinds of deliveries. Another fact to keep in mind is that today the end-user has become accustomed to receiving “free shipping.”
Logistics service providers should also note that the e-commerce sector in Central America is expanding by significant leaps and bounds. The study of profitability and correct implementation of last-mile logistics is changing forcibly, and sometimes it is necessary to make “blind” decisions with their corresponding risks.
Keys to optimizing the last-mile logistics in Central America
Faced with this problem, logistics suppliers must make a note of several different key points to optimize the last mile or manage this delivery process more efficiently, as we will see below:
Optimizing transport routes in the last mile
When focusing on the last mile as a delivery point, one of the fundamental issues a logistics services supplier needs to think about is route optimization. It is necessary to synchronize all the elements that make up the capillary distribution.
It is necessary to see what the most efficient routes are based on factors such as real-time traffic flows and their possible alternatives within the city.
Type of parceling and transport
It is also necessary to think about the size of the packages to be transported at each transport point, as well as the nature of the products. It is not the same to transport a fragile package as it is refrigerated food, for example.
Likewise, it is necessary to think about the types of vehicles, from motorcycles to vans with refrigerators, and to combine both their drivers and vehicles with other deliveries so that they “do not overlap.” All of this will result in better service in delivery
Conditions of delivery to the customer
As we have already mentioned, the customer wants his or her package in an optimized delivery time and in perfect condition. In this sense, it is necessary to consider different variables for the proper management of last-mile logistics in Central America.
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