Last Mile
March 21, 2024

Overcoming Last Mile Complexity in 2024 (Without Increasing Costs)


Last mile delivery isn’t getting any less complex in 2024 (or beyond). This week’s FRAYT newsletter looks at how organizations with last mile delivery needs are overcoming complexity and striking a balance between cost control and service excellence. Continue reading to get the latest from around the last mile space, and start shipping with FRAYT if you need a partner to help you perfect your last mile delivery program.

Transportation Costs Rebounding for 3PLs

The Transportation Intermediaries Association (TIA) is the “voice of third-party logistics professionals” — better known as 3PLs. The TIA’s report for 2023’s fourth quarter indicates that we’re seeing “signs of recovery” in transportation costs. This is good news for 3PLs, as it demonstrates a growth in opportunities for all firms. As transportation costs reached significant lows in early 2023, many firms went through layoffs or shuttered their businesses altogether. Due to this rebound, now is the perfect time to start thinking about strategic partnerships that can help fuel future growth — including middle and last mile delivery partnerships.

Other authorities in the space forecast significant growth for the 3PL industry in the coming years, heightening the importance of 3PL partnerships. One projection shows that the 3PL service market will rapidly grow through 2031.

Balancing Cost and Complexity in the Last Mile

3PLs aren’t alone in needing strategic partners to seize the opportunities ahead — especially in last mile delivery. RetailWire recently wrote about the costs and complexities associated with same-day delivery. This is a serious and widespread problem in retail and other industries that rely on same day delivery to develop a competitive advantage.

Again, partnerships are the best path forward for organizations (retail, construction, industrial supply, 3PLs, etc.) that need to balance costs with operational excellence while also overcoming the complexities associated with same-day delivery. It’s difficult for organizations to build last mile programs that can execute on same-day deliveries without sacrificing either cost or operational efficiency.

Target Becomes a Tech Company

Amazon is treated like a “tech” company, though it’s also an online retailer. On the flip side, traditional retailers like Walmart and Target are not typically considered tech-forward organizations — though that could be changing, according to Chain Store Age.

Target is keeping up with Amazon and then some, developing proprietary technology that “enhances the shopping experience, improves enterprise operations,” and even is being used by third parties that license the tech from Target.

Here’s the thing, though: Not all retailers have the resources of Target, Walmart, or Amazon to develop technology that generates a competitive advantage. In these cases where resources are limited, it’s better to partner with service providers that already have high-end, proven, effective technology in place. At FRAYT, we offer a last mile delivery platform that makes it easy for retailers, construction companies, logistics service providers, manufacturing firms, industrial suppliers, 3PLs, and others to enhance the quality of last mile delivery without investing a lot of money on in-house development.

Be Ready for the Industrial Bounce Back

After a banner year in 2023, the industrial market will likely take a step back in the first quarter of 2024. There are two significant reasons for industrial suppliers to double down on excellence:

  1. It’s more important than ever to deliver outstanding service during a downturn. In fact, it’s one of the few ways to develop a competitive advantage and to thrive when opportunities are limited.
  2. Now is the time to prepare for periods when opportunities flood back into the marketplace.

Industrial suppliers that can secure the right strategic partners, embed the right technologies and perfect their service offerings will be the ones who capture more than their fair share of the market when things bounce back.

Last Mile Partnerships: The Key to Success

In a recent article, SupplyChainBrain highlighted the importance of last mile delivery partnerships. Capacity will always be an issue for organizations that maintain their own fleets. It’s difficult to scale your own fleet up (during peak seasons) and down as needed. Even if an organization uses several carrier partners for fleet augmentation, securing the required capacity for last mile delivery can be difficult — especially on short turnarounds.

At FRAYT, we maintain a presence in markets across the country, offering high-quality drivers and a diverse fleet of vehicles so that we can respond to urgent last mile delivery needs as they emerge. Add FRAYT to your portfolio of last mile carriers to ensure you have the capacity you need when you need it.

Partner With FRAYT

For any organization that encounters last mile problems, FRAYT offers solutions. Our last mile platform is intuitive and easy to use. Our drivers are highly qualified to provide memorable customer experiences. And our range of vehicles can accommodate almost any type of delivery — industrial, construction, parcel, etc.

We offer a presence in leading markets nationwide to serve you in high-volume areas — and help you achieve the last mile ROI you want and need. Take the first step toward perfecting your last mile when you ship with us.

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