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How to achieve on-time delivery with GPS fleet tracking
Peak season for florist, nursery, and landscape companies is approaching and with heightened competition, local businesses...
Read moreLast mile delivery is where logistics planning is really put to the test.
Routes that look efficient on paper can quickly become more complicated once drivers encounter traffic congestion, limited parking, changing delivery windows, apartment complexes, gated communities and tight timelines.
So what is last mile delivery? Last mile or final mile delivery is that final stage of the delivery process, when goods move from a warehouse or distribution center to the end customer. It often involves smaller vehicles navigating door-to-door delivery, frequent stops and tight delivery windows.
And it’s one of the most operationally difficult and expensive parts of the supply chain. Industry estimates suggest last mile delivery accounts for roughly 41% of total logistics costs1 because of fragmented routes, frequent stops, labor demands and inefficient stop-and-go operations.
Operational awareness over routes, vehicles, driver behavior and delivery activity can help truly improve last mile delivery optimization.
Telematics and last mile delivery software can give dispatchers and managers a clearer picture so they can coordinate deliveries more effectively, improve customer service and help drivers navigate increasingly complex delivery environments.
Last mile delivery challenges
For most fleets, the challenge isn’t just getting deliveries from point A to point B. It’s managing the constant operational friction that happens in between.
Urban congestion and parking limitations
Urban and even some suburban delivery drivers spend large portions of their day navigating traffic, searching for parking or competing for limited curb space. Parking availability can significantly affect delivery efficiency: 28% of the total trip between locations is consumed by parking, particularly in dense urban environments.2
Those issues can create a ripple effect across delivery operations, contributing to delayed deliveries, inconsistent ETAs, more idling time, driver frustration and greater safety exposure.
Even small delays can cascade throughout the day and disrupt delivery schedules.
Safety risks from constant stopping and distractions
Unlike long-haul driving, final mile delivery operations often involve constant stopping, backing, turning, parking and navigating around pedestrians, cyclists and dense traffic patterns.3
Time pressure can make those fleet driver safety risks worse. Drivers trying to stay on schedule may be more likely to speed, accelerate and brake harshly or rush through busy delivery areas. Repetitive stop-and-go driving can also increase fatigue and frustration over the course of a shift.
Rising customer expectations and delivery pressure
Customer expectations around delivery speed and transparency continue to grow. They now demand same-day or next-day delivery with narrow windows, near real-time ETAs and faster communication when delays do occur.
That leaves fleets with little room for disruption caused by traffic, weather, parking limitations or route changes. Even small delays can create customer service issues when fleets lack accurate delivery insight or communication tools.
Cost pressure and operational inefficiency
Frequent stops, inefficient routing, traffic congestion and idling can all increase operational expenses. Fuel waste, overtime and failed delivery attempts compound the problem.
Drivers may spend substantial time sitting in traffic, circling for parking or taking inefficient routes around road closures and congestion.
As a result, many organizations are turning to telematics and last mile delivery logistics to help improve operational execution and manage increasingly complex delivery networks.
Transportation and distribution fleets: Here’s your buyers guide for understanding all telematics can do.
Solving the last mile problem with telematics
Many final mile delivery problems become easier to manage with better operational fleet management.
Improve last mile delivery tracking with live GPS
Live GPS fleet tracking allows dispatchers to see vehicle locations in near real time so they can monitor route progress, respond to delays and provide customers with more accurate ETAs. Managers can pinpoint team locations using familiar Google-powered maps for rapid dispatch.
Historical route replay tools also help managers investigate customer complaints and verify delivery activity.
Geofencing adds another layer of visibility by automatically recording when drivers arrive at or leave loading docks or delivery locations. Verizon Connect’s software even generates automated geofence locations based on frequent activity, slashing manual admin time.
Optimize route planning in dense delivery environments
Traffic congestion, road closures, construction, parking availability and changing delivery priorities can all affect route efficiency.
API integrations like RouteCloud can support more complex fleet route optimization by analyzing millions of possible route combinations based on delivery priorities, traffic conditions and scheduling constraints.
Commercial truck navigation GPS tools can help reduce unnecessary mileage, improve stop sequencing, adjust around congestion and respond faster to disruptions.
Reducing idling time is also important in stop-and-go delivery environments. Verizon Connect customer data has shown that active use of Reveal reports and alerts can lead to a 15% to 40% median reduction in idling time.4
For delivery fleets operating in dense urban areas, reducing unnecessary idling and inefficient routing can help significantly lower fuel usage.
Last-mile fleets spend hours idling. But there are five simple ways to get idling under control.
Support safer driving with in-cab driver coaching
AI-powered dashcams and telematics systems can identify behaviors like speeding, harsh braking, tailgating, distracted driving, rolling stops and seatbelt compliance.
In-cab driver coaching tools like audio alerts notify drivers in near real time when unsafe behaviors occur, allowing drivers to self-correct during the trip.
Driver behavior monitoring can also help make driver coaching more objective and less confrontational. Managers can review actual driving events with drivers instead of relying on assumptions or customer complaints alone.
Certain driving behaviors are strongly associated with future crash risk. An analysis of Verizon Connect data has found that per 1,000 km:4
- More than three overspeeding events can raise crash likelihood by 230%
- More than two stop-sign violations can increase crash likelihood by 260%
- More than three phone-distraction events can increase crash risk by 160%
Driver scorecards and safety profiles help managers identify risky patterns and target coaching more effectively.
Coordinate drivers and field activity with last mile delivery management software
Managing communication between dispatchers and drivers becomes more difficult as delivery volume increases.
Enterprise fleet management system features such as Verizon Connect WorkPlan helps streamline that coordination so drivers receive job information, route details and updates directly through mobile devices while dispatchers monitor job progress from a centralized platform.
These tools can help reduce manual paperwork, status update calls and communication confusion.
Turn fleet data into actionable operational insights
Many delivery fleets already collect large amounts of data but struggle to identify what requires attention.
Verizon Connect’s Operational Insights uses generative AI to surface trends and anomalies within fleet data so managers can identify issues more quickly without manually reviewing large volumes of reports.
The system can highlight insights related to safety trends and driver behavior or productivity and efficiency issues like idling or time spent on site.
These insights, presented as brief news alerts in the dashboard, can help managers identify day-to-day inefficiencies earlier and make more informed decisions based on actual fleet activity.
For busy delivery operations, simplifying how managers access and interpret data can help reduce the time spent searching for information.
Preparing last-mile fleets for electrification
Last mile delivery fleets are often good candidates for electrification because vehicles travel shorter daily distances and return to depots or centralized facilities between shifts.
An EV suitability assessment can help fleets evaluate whether existing delivery routes and daily mileage align with electric vehicle range capabilities. A Verizon Connect analysis of more than 92,000 commercial vehicles found that 42% of internal combustion engine vehicles were already suitable for EV replacement based on daily mileage patterns.4
The analysis also found that 95% or more of those vehicles’ daily mileage was compatible with standard EV ranges.
EV suitability and route analytics can help fleets evaluate EV candidates, charging feasibility, daily mileage compatibility and potential energy savings.
The analysis saw real fleet electrification ROI with a projected potential annual energy cost savings of more than $69,000 per fleet, along with an EV environment impact that reduces average annual CO2 reductions of 192 tons per account.
Considering fleet electrification? Learn the five key ways to prepare for EVs.
Last mile delivery solutions
Last mile delivery operations are becoming increasingly complex as customer expectations, delivery density and e-commerce volume continue to rise.
Fleets must balance efficiency, safety and the customer experience while operating in fast-changing delivery environments where small disruptions can quickly affect routes and schedules.
Smart telematics and last mile delivery tracking tools help provide the coordination and control needed to manage those challenges more effectively. From live GPS tracking and route planning to in-cab driver coaching and operational insights, modern telematics platforms can help fleets improve how they manage the final mile.
Want to see what last mile delivery software can mean for your fleet? Book a demo.
Sources
1 Navigating the Complex Web of Last Mile Deliveries, Capgemini
4 Verizon Connect aggregated customer data