Problems with Last Mile Logistics in India

    

Since 2016 India has witnessed tremendous growth in adoption of E-Commerce across multiple categories of Products. Starting with Fashion & Consumer Electronics there is a increase in growth of other categories such as Industrial Products, Healthcare, Groceries, Medicines, Office Stationary Items etc.

However despite the growth the Last Mile Logistics still continues to plague the Delivery Schedules.

Last Mile Logistics refers to the logistics or delivery method from the Last Major Hub to the exact Customer Address. It is last leg of the Whole Order Delivery Process.

Typical Phases in the Delivery of a Product

1. Order Received from Customer
2. Order Packed and Ready for Dispatch
3. Package Scanned and Picked by Courier
4. Package sent to Regional Hub at City of Origin
5. Based on Shipment type Air or Surface, its connected to the City of Destination
6. Now if it is a rural area then the Package first goes to Nearest Hub to the City of Destination
7. Then Delivery happens to the Customer

Now in the above steps there is almost very less issues or concerns from steps 1-6. The Package gets picked promptly and gets delivered to the Nearest Hub or Hub at the City of Destination. The lead times here are predictable. However the last leg is very I have noticed various.

Frequent Issues seen in last mile logistics

1. Some Courier refusing to go deliver to customer considering its far from the Hub and asking Customer to come pickup the parcel
2. Service levels of the last mile delivery person is subjective. Really depends on the person who delivers the products.
3. Scheduling for Delivery or Rescheduling the same delivery for another time is dependent on the work load at the Hub. Results in Delivery delays
4. Addresses are not completely provided by the Customer while placing orders. In India there are many streets having same address in a zone and many cases Door Numbers, Plot Numbers, Building Numbers are not mentioned or not displayed or not found or replaced with new numbers. This again results in confusion.
5. Google Maps although works well in most cases, falters in some inner streets or denser packed zones – hence courier companies could not trace the address.
6. Many courier companies have tie-offs with other companies in regions out of their comfort zone. When such hand-offs happen there are noticeable drop in Service Quality.

Many of the issues can be addressed by tightening the processes at the Courier Company. But there needs a major change which needs to be addressed in India for improving Delivery predictability and meeting Delivery Times.

Opportunities for Courier or Delivery Companies in Last Mile Logistics

1. Better relationships with the Last Mile Connectivity Partner for ensuring same levels of service quality
2. Mapping the Entire Hub with complete details of streets and addresses
3. Ensure Mandatory Training for new joiners on the Importance of Service Quality and also the Details about the Hub/Zone/Block/Ward
4. Well Connected and Integrated systems for Tracebility of the product at each stage – especially in cases where there are hand-offs to third party regional courier companies.
5. Have regular feedback session with the Ecommerce companies in understanding their concerns and addressing them

As I am writing this Article I am still having significant delivery issues outside the Metro Region! Still searching for that one dependable Delivery Partner even if its a higher cost