Last mile delivery is the movement of goods from a transportation hub such as a common carrier’s warehouse to the final delivery destination which is most cases a residence.

Last Mile Delivery has become an integral part of fulfillment. As retailers compete for same or next day delivery, they are always looking for companies that handle the last portion of the delivery to the customer.

Some of those last mile delivery companies also offer white glove service in order to offer a complete customer experience.

White Glove services refers to the inside delivery and sometime installation of a product that a consumer has purchased such as furniture that weighs too much and needs a few people to carry and place inside a residence. Many online retailers offer these services to their clients which creates a good customer experience and therefo re customer loyalty.

As an example of last mile delivery, let us assume you live in Miami and have purchased a refrigerator from an online retailer, the refrigerator shipped from another state. You are expecting delivery to your home which happens to be in a gated community where large commercial trucks are not allowed. The Retailer will ship the fridge to a distribution hub in your city and then hire the services of a last mile delivery company in Miami to deliver to your home and install the refrigerator.

Some of the common carriers are now offering last mile delivery as part of their logistics Services.

Last Mile Delivery and Omni channel fulfillment

With Evolving ominichannel fulfillment, Last Mile Logistics has become an area of interest for a retailer and has been integrated into their fulfillment channels.

Due to the surge in online orders traditional delivery methods are just not enough. Faster delivery is demanded by customers who would like to be presented with many delivery options to choose from.

The anticipated increase in online sales is expected to span across a variety of product types which might dictate the delivery option used.

Logistics Companies

It is almost impossible for most common carriers to handle the last delivery in all areas of the USA, it is like creating a whole new business with its own infra structure. Common carriers have opted to outsource that part of the delivery process to: 3PL Companies

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Artificial Intelligence has made it into our lives a while back and continues to make an impact. From playing chess against a computer to Siri, Alexa and detecting cancer cells, A.I. is here to stay.

The logistics industry is beginning to invest in A.I. heavily starting with the shipping companies such as Maersk and CMA. Soon we will be able to see more efficient shipments at a lesser cost.

To those of you who watch futuristic movies, rest assured the Artificial Intelligence will not take over the world, we will not be ruled by robots.

Artificial Intelligence is about machine learning and learning (input) requires processing power. There just isn’t enough processing power in the world to match the power of the human brain. To clarify further it took 90,000 processers 1 hour to process what 1/100 of the brain to process in 1 second. You do that math.

When it comes to logistics, Artificial Intelligence is lagging behind other fields. Ocean Shipping Companies, are developing software to better track Ocean Freight shipments minute by minute.

In the next 5-10 years, we might be able to see driverless trucks making deliveries, robots in the warehouse will be able to determine which box to use for a specific item. The shipping software will automatically decide on the best shipping method at the least cost depending on the variables presented.

Tech giants, like Amazon, have been using Artificial Intelligence to determine which location an item should be shipped from to minimize the cost and expedite the shipment, Omnichannel Fulfillment.

Efficiency of the supply chain will continue to improve with the implementation of A.I.

Will Artificial Intelligence Replace us?

You need to understand that as long as A.I. lacks consciousness, human interventions will always be needed.  Our input will guide A.I.  so, for you dreamers out there, please come back to reality and for those of you afraid of technology, do not worry, robots will not make us obsolete simply because there is no power more dominating than the human brain. Just ask Microsoft about the failed Tay experiment. A.I. has to be able to perceive and act.

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Omnichannel order fulfillment Or (Omni Channel) is the order fulfillment across multiple channels. To put it simply, it is about order completion.  It does not matter where the order is being shipped from as long as it is completed at the lowest cost to the retailer.

Omnichannel Fulfillment is about having inventory available across all channels from one location. In one case it is the retailer’s website.

Omnichannel Order fulfillment Simplified

You are a retailer who received an online order from a customer for one of your products. If the product is available in your Distribution Center or 3PL Warehouse, it ships from there, if not, it could ship from one of your retails outlets or a partner.

It is about completing the order and creating a great customer experience. Which  Order Fulfillment strategy should be used when an order is received? The answer is: The most cost effective fulfillment process.

Types of Fulfillment Channels

1- Straight order in warehouse fulfillment

This means that the order will be shipped from the warehouse, DC or 3PL Company as it is received. If the product is not available at that location, order is not shipped even though it might be available at a retail outlet or a drop ship from the vendor.

2- Multi Channel Fulfillment

Inventory is available at different locations from warehouses to retail outlets and vendors however it lacks integration. Multichannel is identified by a non-integrated way to approach customers and inventory.

3-Omnichannel Fulfillment.

Similar to multichannel with a major difference, It requires coherent and absolute inventory integration.

Challenges to Ominchannel fulfillment

A resistant culture. The retailer has to learn new methods of fulfillment which is not always easy and some top managers might resist.

Where to start?

Adopting Omni Channel fulfillment is not easy. You first have to choose an Ominchannel fulfillment strategy that is easiest for people to embrace.

Omni Channel fulfillment is about cutting costs and faster completion of orders. Adopting Omnichannel fulfillment means that that should one fulfillment route fail, the operations can pivot to an alternative.

When your order is placed with a retailer, the order is filled immediately from either the DC, 3PL company, the vendor or a partner without you even having to worry where the order is coming from. That is what Omnichannel fulfillment is all about.

International 3Pl has been a major partner with many retailers adopting Omnichannel fulfillment. We are an integral part of the strategies adopted by many retailers.

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