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  • Essay / Limitations of Last Mile Ecommerce Delivery

    Last mile product delivery is an important part of a product's supply chain, and when it works perfectly, it can improve the relationship between retailers and their customers. But when the last mile process does not work effectively, then it can improve coordination between retailers and their customers. Nowadays, many companies are implementing different strategies and plans to reduce costs and improve operational efficiency until last mile delivery. In today's competitive scenario, it is very important for businesses to be one step ahead of their competitors. Even though today last mile delivery is recognized by customers shopping online, there are still problems in this process and these problems result in low operational efficiency and low service level. According to Morganti, E. et al (2014) highlighted the problems from the consumer and carrier perspectives. Seen from the customers' point of view, it is recognized that they have an availability problem at the point of delivery. Often they are not available at home. Sometimes when there is a delivery arrival day, they have to stay at home forcibly due to the unpredictability of the delivery arrival time. Additionally, customers face the problem of high delivery costs and long delivery times. From the carrier's perspective, carriers claimed that the delivery costs were high due to failed delivery and long delivery costs. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayAccording to Park and Regan (2004), the important factor that has a huge impact on the home delivery process is unavailability customers at home. Most last-mile delivery companies already notify their customers of the shipment's tentative arrival time, but that's the time most people are at work. So the delivery fails because the shipment arrival time is during normal business hours. For small packages another option may be mailboxes, but for medium and large shipments this results in delivery failure. As a result, it is concluded that around 30% of small shipments sent to customers' homes fail to be delivered on the first attempt. There are other cases for the food delivery system. In this process, online senders and receivers can agree on a pre-time slot for delivery, but even then there is no guarantee that until the time of delivery, customers will be at home . But depending on the basic last-mile delivery model, such pre-arrangement can increase the flexibility of the carrier's fleet operations. Such a phenomenon can lead to high operational costs for retailers and logistics service providers. Many external factors have a huge impact on last mile delivery operations. Considering the environmental effect of last mile delivery, it is demonstrated that the transportation of goods in different types of service vehicles can have an economic, social and environmental impact on the environmental balance and urban infrastructure. Punakivi et al. (2001) discussed other issues related to last-mile delivery, such as delivery failures and the ping-pong effect. The ping-pong effect refers to the situation in which customers and.