LIVING LOGISTICS BLOG

    Mastering the magic formula to success: eCommerce + Last Mile logistics

    Mar 26, 2021 9:00:00 AM / by Javier GUTIERREZ

    As modern problems require modern solutions, living in the digital revolution is forcing us to adapt to new ways to do business.

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    While you are reading this text, thousands of electronic transactions are taking place in the world. Commerce is migrating from physical agreements to virtual interchanges in an incommensurable rhythm, leading logistic companies to innovate solutions to the speed of light.

     

    To master the formula to succeed in the digital era, the first step is to understand eCommerce and its forms. eCommerce is the process of buying and selling products or services over an electronic medium, allowing people to do business without the constraint of distance and time. The typical ways of eCommerce are:

     

    • B2C (Business-to-Consumer) - Selling products and services directly to consumers who are the end-users of these products or services.
    • B2B (Business-to-Business) - Transaction between businesses, such as one involving a manufacturer and a wholesaler, or a wholesaler and a retailer.
    • C2B (Consumer-to-Business) - When customers offer products or services to businesses.
    • C2C (Consumer-to-Consumer) – A business model that facilitates commerce between private individuals.
    • B2G (Business-to-Government) - Often lumped in with B2B, is a model where a business sells goods and services to governments.

    The second ingredient of this magic formula resides on the last mile logistics.

     

    The “Last-Mile” element of the home-delivery model represents more than 50 percent of the total logistics cost and is fraught with challenges.

     

    According to Mark Millar, traffic congestion in urban areas and the tyranny of distance in remote areas both add time and cost, negatively impacting the economics. Further compounded by practical issues such as invalid or incorrect address details, hard to locate locations, no-one home so cannot accept delivery, buyer remorse – no longer wants the delivery, lack of nearby parking, elevators out of service and many other hurdles, all add cost, time and inconvenience to an already marginal activity.

     

    So, what are the advantages of integrating final mile logistics into your business?

     

    For shippers, integrating final mile logistics is an excellent way to reduce labor and maintenance costs while simultaneously providing faster shipping options. Companies can find delivery drivers who specialize in specific industries and locations, which means you can cost-effectively ship smaller volumes of product.

     

    And guess who a specialist on last-mile solutions is? Yes, GEODIS | Supply Chain Optimization.

     

    GEODIS has developed solutions to bring exposure to your business, with a wide offer of logistics services and premium options such as white-glove deliveries, granting exceptional customer experience, visibility, and control.

     

    By integrating final mile logistics into your overall delivery strategy, you may be able to set your sights on new ways of serving customers.

     

    GEODIS is mastering the formula to help our clients to succeed in the digital era, with innovative solutions and a team of experts to bring efficiency to your supply chain.

     

    Back to blog home

     

    Topics: Supply Chain Solutions, Last Mile Delivery Solutions, Solutions, Ecommerce, Information Technology, Logistics

    Javier GUTIERREZ

    Written by Javier GUTIERREZ

    Javier joined the GEODIS family in September 2016. He's known for his solidarity and leadership, which led him to make part of the GEODIS MyParcel account. Javi is passionate about mythology and soccer. Reach out to him at javier.gutierrez@geodis.com

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