F or most companies , the last-mile – transporting goods from a distribution center or fulfillment center to the end customer ’ s doorstep – is one of the most expensive parts of the supply chain and one of the hardest to optimize . Because it is a key customer touchpoint , the last-mile plays a critical role in brand satisfaction and reputation . While there is often a disconnect between what is happening further up the supply chain and in the last-mile , some upstream logistics chain improvements can make a difference in downstream optimization .
The lack of integration between logistics and the broader supply chain has been an issue for several years . Companies have relied on completely outsourcing their transportation activities to 3PLs without truly integrating them into the design and planning activities . This approach may have worked in the past due to stable transportation costs and fewer disruptions , but does not suffice for the current pace and challenges of the industry .
Disruption persists , but there is hope on the horizon
Logistics and supply chain professionals have been under the microscope in recent years . The numerous black swan events and COVID-19 have demonstrated just how critical and fragile supply chains are .
Businesses continue to juggle a myriad of issues , from labor shortages and strikes , shipping delays , heightened customer expectations , supply chain continuity , financial stability , and more . Meanwhile , cost management and profitability remain top priorities now and in the year ahead .
While last-mile optimization is critical and a high priority , there is an entire logistics chain that can be optimized for downstream improvements . As companies set priorities for the coming year and optimize their logistics chain , they will likely focus on three areas in 2024 : building supply chain resilience with continuous design , improving inventory management with inventory optimization , and implementing new technologies to increase efficiency .
Last-mile resilience starts with data-driven , continuous design
More supply chain leaders are embracing continuous design , which refers to the development and ongoing refinement of optimal supply chain structures , policies , and flows . Continuous design has important implications for last-mile delivery . Continuous design allows businesses to reduce uncertainty and variability , helping to minimize the impacts of unusual supply and demand fluctuations . When disruptions are reduced , everyone benefits .
In short , continuous design helps businesses adapt and balance “ just-in-time ” and “ just-incase ” principles so they can maintain an economical supply chain that guarantees customer resilience and availability .
fall 2023 I customized logistics & delivery Magazine 25