Logistics Blog | Total Distribution, Inc. in Jacksonville, FL

The retail supply chain industry regularly faces abundant opportunities and threats. For example, with the online shopping evolution, customers no longer need to invest time and gasoline shopping locally. They buy online and let the seller take care of the time-consuming but necessary step of getting the products delivered to the product buyer. Though the sale is an opportunity for the business to generate revenue, it’s also a threat when it comes to delivering the product to individual product buyers. Why? A lot of product buyers live in urban areas. That means products need to individually be delivered to final city destinations. These city destinations are also referred to as urban logistics.

Consumers no longer physically go to the store and buy and pick up their items as often as they buy online. This has driven the growth of urban logistics.

Urban or city logistics refers to delivering products to consumers in urban areas. Online consumer shopping demands quick product delivery. Amazon’s well-known two-day product delivery practices has created a challenge for a lot of other businesses when it comes to product delivery.

Instead of the consumer going to the stores where trucks unload “group product deliveries” now, individual products go to homes and small businesses. Of particular focus on this increasing delivery practice is what’s called “last mile costs.” In urban logistics, “last mile costs” can eat up to 28% of the delivery costs.

“Last mile costs” refer to delivering goods of the last leg of the supply chain. Typically, the last piece of the trip to deliver goods to a final urban destination becomes the least efficient part of the trip. How inefficient is the “last mile” for many trucking companies? According to Wiki, up to 28% of the total cost to move goods.

Latest Urban Logistics Strategies

A survey conducted by Auburn University reveals that supply chain strategy management customarily focuses on balancing cost and service. For urban logistics, only 8% of those surveyed reported a strategic focus of cutting costs. Delivery companies feel concerned about “last mile” costs in the developing urban logistics market. Also, of concern is making sure customers are happy. Amazon’s two-day deliver created a challenge for other companies who can’t deliver goods as fast as Amazon.

Simplify Your Supply Chain with Total Distribution, Inc.

Total Distribution offers expertise in all areas of supply chain management and third party logistics. If you need trucking, warehousing, packaging and/or staffing services, contact us first to learn more about our rates, services and what we can offer you as one of the best third party logistics companies in Jacksonville, Florida and the Southeast.



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