Last Mile Delivery: How to Get It Right in 2022

While it is important to streamline every phase of e-commerce order fulfillment, it is crucial to get one stage right – the last mile! In supply chain management, last mile delivery refers to the transportation of goods from the warehouse to the final destination – the customer’s doorstep. Customers do not see the logistics process before the last mile, so it is essential to optimize this stage to positively influence their delivery experience. In 2022, last mile delivery costs are considerable- comprising almost 53% of the total cost of shipping¹. As free shipping becomes a universal expectation, it is vital to optimize and improve your last mile delivery fleet to extend the range of your vans, reduce costs and maintain delivery schedules.

Trends in Last Mile Delivery

• Sustainable Growth in Last Mile Delivery: A recent survey found that the pandemic has not only accelerated online shopping trends but has also made them permanent². As the demand for delivery booms, the last mile delivery van market also grows exponentially. The global autonomous last mile delivery market is projected to grow from $11.12 billion USD in 2021 to $51.38 billion USD by 2028 at a CAGR of 24.4%³. As fleet managers cope with the growing demand, the goal remains to make deliveries safer, more efficient, and more sustainable. One of the best ways to do this is by equipping last mile delivery fleets with innovative upfitting and smart technology.
• Changing Customer Expectations: While the last mile was always significant, the pandemic altered the delivery world and added more pressure to last mile delivery. Most customers (even those in more rural or remote regions) now turn to online ordering and expect same-day or two-day shipping. This has led to altered routes, increased costs, and additional planning for last mile delivery in the supply chain. To lower costs, fleet managers must focus on fleet maintenance and optimized vans.
• Driver Shortages: A growing and persistent concern for fleet managers is a shortage of drivers. As e-commerce continues to grow, the increasing capacity to meet demand remains a significant challenge for supply chain and fleet managers. Under the circumstances, improving the quality of their day-to-day experience is the key retaining qualified drivers. To do this, last mile delivery vans must be well maintained and offer enhanced safety and convenience features for drivers.
• The Shift to EV: As technology rapidly transforms our industry, more fleet managers are turning to electric fleets. In fact, the last mile delivery market is primed for electrification! Evolving trends and increasing demand in this market now coincide with the evolution of electric vehicles- as their range, battery life and model options increase and costs slowly decline. Additionally, last mile delivery vans now experience increasing stops, standardized routes, and daily returns to the warehouse, making electric vehicles a natural and more sustainable fit for the category. As the demand increases, prominent auto manufacturers such as Ford (read more about the new E-Transit), Mullen and GM are now producing electric cargo vans.
• Growing Need for Safety and Solutions: While fleet managers continue to value the core aspects of commercial vans such as efficiency, capability to haul cargo, low cost of ownership and reliability, there is a growing need for advanced safety and customized solutions to optimize delivery vans for last mile delivery.

Optimize Your Last Mile Delivery Vans in 2022

The best way to reduce costs and increase efficiency is to optimize your vans with customized upfits that enhance safety, range, and operation. To enhance your last mile delivery operations in 2022, optimize your fleet with:

• The Right Flooring: Ranger Design offers custom-fit, rigid van flooring for cargo vans. Designed to provide added safety and a quieter ride, these impact and puncture-resistant floors give your last mile delivery van a professional look and help in the efficient utilization of space on your van floor. We also recently launched the E-Floor, a drill-free, easy-install flooring solution designed to offer the best fit for electric and conventional vans.
• Safety Solutions: As you evaluate advanced safety solutions for your last mile delivery fleet, consider Ranger Design’s van partitions – engineered to provide a solid, secure barrier between the occupants in the cab and the cargo area. Our van partitions are built to withstand the most rigorous crash test standards in the industry and are designed for maximum impact resistance.
• Versatile Upfit: At Ranger Design, we’ve learned that most delivery professionals need an upfit that allows maximum versatility. Our range of strong fold-away shelving systems are adjustable, lightweight, rattle-free and designed for maximum flexibility.

Ranger Design can help you transform your fleet with the right upfit. Contact our Fleet Experts today to learn more!

¹ https://www.insiderintelligence.com/insights/last-mile-delivery-shipping-explained/

² https://www.oracle.com/a/ocom/docs/industries/retail/consumer-research-new-next-report.pdf

³ https://www.fortunebusinessinsights.com/autonomous-last-mile-delivery-market-105598