The Challenges of Last Mile Delivery Post Pandemic

by | Jul 5, 2021 | Blog

Estafeta USA

Last mile delivery post pandemic is a complex challenge in the supply chain. The pandemic increased people’s desires to safely shop from home. Thus, ecommerce has increased by as much as 70% compared to pre-Covid times, to levels previously expected for 2024. Needless to say, the implications are enormous for business, and closer to home, specifically for supply chains operations. So as expected, the pressure is on for last mile delivery processes.

‘How soon can I get my order?’

This seemingly simple question represents all the expectations about last delivery services. And these expectations are only going grow higher. Because even after the pandemic subsides, customers are already used to shopping online in the comfort and safety of home.

Last Mile Delivery Post Pandemic: Expectations get higher as timeframes get lower

  • Higher customer expectations demand fast, on-demand delivery. And this implies increasingly complex fulfillment networks.
  • Case in point, the ‘Amazon effect’, which has raised the bar even higher. With its wide range of products and increasingly shorted delivery times, Amazon has been taking market share from the competition.
  • Continuing with the Amazon effect lessons, proximity to inventories is key. One of the secrets of their success has been fewer large regional distribution centers, and more urban, smaller fulfillment hubs.

Last Mile Delivery Post Pandemic is not an easy package to process.

Last mile delivery is both the most complex and also costly portion of the supply chain. And at the same time, it can be the deal breaker of the customer experience. So, to say that we have our work cut out for us, is an understatement.

The pandemic has been a wake-up call for the supply chain industry. Because it has accelerated long overdue digital transformation and innovation steps. Among them, implementing technology and automation in operations, omnichannel strategies, and changing ownership of last mile delivery. Additionally, there’s the pressure for retailers to transition to using stores as fulfillment centers, with all the associated complexities.

A work in progress

When it comes to the challenges of last mile delivery, we are just scratching the surface. And just like our customers, we at Estafeta USA keep making efforts to adapt to the ‘new normal’ realities. And we look forward to hearing from our customers regarding the challenges of last mile delivery post pandemic. Let’s talk, so we can understand how to best respond to your logistics and last delivery needs in Mexico. We’re here for you!