Amazon has experienced tremendous growth over the past few years as it dominates the e-commerce industry. Amazon’s growth is mainly due to its cutting edge logistics network, which allows Amazon to quickly and efficiently deliver products to customers worldwide.
The logistics industry has also undergone tremendous growth over the past decade, as more companies like Amazon race to meet the growing demands of consumers for fast and reliable delivery services. The industry is now worth $7 trillion, and many companies are investing heavily in new technologies and innovations that help them stay ahead of their competitors.
As Amazon and other similar companies like it continue to grow, the logistics industry will likely continue to grow alongside it. Although many parts of the logistics industry are hard to enter (e.g., trucking) due to high capital costs, there is one sub-sector that anyone can join, which is the last leg delivery market.
What are Last Leg Delivery Services?
The last leg delivery services are the final stage in the logistics process, where products are delivered from a distribution center or fulfillment center to the customer’s doorsteps. Last leg deliveries are typically done via truck or van but can also be done through other means such as bike, scooter, or even on foot.
As e-commerce continues to grow and more companies enter the space, there is an increasing demand for last leg delivery services. This is because customers now expect to receive their orders faster and more efficiently than ever before.
Many companies are turning to third-party delivery providers that specialize in last-leg deliveries to meet this demand. These providers use cutting-edge technology and innovative methods to ensure that products are delivered on time and without damage.
If you want to get started, there are a few things you need to consider, one of which is equipment.
Vehicles and Equipment
Unlike trucking, last leg delivery services require much smaller capital for vehicles and equipment. The cheap capital required for vehicles and equipment means that you can often get started with very little investment.
One of the most common delivery methods is to use cargo vans or box trucks, as these vehicles are spacious and have plenty of room for all types of packages. However, if you need a more efficient delivery service, consider using bikes and scooters instead. These options may be slightly less flexible, but they allow you to cover longer distances in a much shorter period.
You might also need a forklift once you have a warehouse. It’s also essential to get a truck weighing scale for your vans and box trucks. A weighing scale can measure the weight of their cargo which is helpful for your inventory management and financial reports.
Fulfillment Centers
Another thing to consider when starting your own last leg delivery service is which fulfillment centers to work with. This will depend largely on the size and locations of your target customers, how long it takes to deliver their orders, etc. Some more prominent companies like Amazon offer great rates if you choose to use their fulfillment centers, but you should also be aware of smaller companies specializing in last-leg deliveries.
Cutting Costs
The cost of running a logistics company is very high. It’s some of the highest in the world. You’ll need to cut costs even if you’re in last-leg delivery. Here’s how you can do that.
Automation
One of the biggest challenges that last leg delivery providers face is high costs for labor, especially in large cities. This can be solved by automating certain processes such as tracking packages and updating customers on their orders. Amazon has over 100,000 robots in its arsenal. All made for logistics alone. Robots have drastically increased their efficiency in delivery and warehouse management.
Customer Support Network
Another way to cut costs is to set up a customer support network. In some cases, this may mean hiring customer service agents who can answer calls and emails or chat with customers online. For other businesses, it might make more sense to outsource this function to an external provider so you can focus on your core business without worrying about managing an expensive call center.
Going Online
Last but not least, you should consider going online to promote and sell your services. This will allow you to reach a larger audience and save on marketing costs. You can also use social media platforms to reach out to potential customers and build up a following.
Buying Used Equipment
If you’re starting your business on a tight budget, you might want to consider buying used equipment. This can be a great way to save on costs while still getting the necessary tools and vehicles for your business.
There are many sites that sell used vehicles and equipment, such as Cargo Vans, so be sure to check them out before making any final decisions.
So if you’re looking to start a last-leg delivery service, consider these key factors when getting started – equipment, fulfillment centers, and technology. Doing so will help ensure that your company stays ahead of the competition while providing high-quality service at an affordable price point.
