Logistics professionals understand that last-mile delivery is the least efficient, most complex, and most expensive step in a package’s journey, accounting for up to 53% of the total cost of shipping. In a new article for Forbes, AxleHire CEO Adam Bryant explains why and offers thoughts on changes needed to the traditional delivery model to deal with the added complexities of ecommerce residential delivery.
Adam believes, “the legacy model lacks the flexibility needed to support modern e-commerce. It’s not just about the things that happen while the driver is in the field; it’s the inherent unpredictability of customer demand and supply chains on a day-to-day basis. It’s difficult for the legacy model to scale (up or down) to deal efficiently with seasonal peaks or fluctuating demand. Fixed costs are high; carriers have purchased the trucks, and the drivers show up daily, regardless of demand. As a result, shippers can end up paying for overhead in idle capacity.”
Adam believes there’s a better approach, a technology-driven, asset-light model that can dynamically match daily demand with just the right capacity. Fixed costs are low, resource utilization is optimized, service is more reliable, and deliveries are more efficient and sustainable.
Technology-driven companies like AxleHire are driving down the cost of expedited last-mile delivery, providing next-day and even same-day service at a cost that is competitive with ground rates from traditional shipping providers. Connect with one of our logistics professionals to see how AxleHire’s highly scalable solution can help you stabilize costs while providing improved customer service levels.
