As the world of e-commerce expands to encompass larger and bulkier items, the last mile of delivery becomes a critical challenge. Armstrong & Associates, in its recent report, predicts that big and bulky last-mile delivery is set to become one of the fastest-growing segments in third-party logistics (3PL). This surge is fueled by the increasing demand for oversized items, ranging from furniture to appliances.
Market Insights and Growth
The report estimates the market size for 3PL big and bulky deliveries to be a whopping $9.3 billion. A staggering compounded annual growth rate of 11.8% is anticipated between 2022 and 2025 in this specialized delivery sector. However, this surge in demand doesn’t come without its challenges, especially considering the last mile can represent up to 40% of the total transportation cost.
Challenges in the Last Mile
Big and bulky deliveries introduce a level of complexity not seen in traditional parcel deliveries. Multiple legs in the delivery journey, inventory challenges, and unforeseen disruptions like traffic congestion add layers of intricacy. The need for installation or assembly further complicates matters, demanding efficient workforce management.
Strategies for Success in Big and Bulky Delivery
1. Fulfillment Model Innovation: Retailers are rethinking their fulfillment models. For instance, major players like Lowe’s are shifting to distribution center-based fulfillment for large items, streamlining the delivery process and minimizing delays.
2. Workforce Management Solutions: Installation or assembly of bulky items requires efficient workforce coordination. Digital platforms help streamline processes, improve efficiency, and enhance communication between managers, drivers, and field service personnel.
3. Logistics and Workforce Coordination: Scheduled deliveries demand meticulous coordination. Seamless synchronization between delivery drivers and assembly teams is crucial. Management platforms provide real-time visibility into schedules, ensuring a smooth workflow.
4. Communication Excellence: Clear communication is key. Real-time alerts, email notifications, and tracking capabilities keep customers well-informed about their deliveries, minimizing frustration and ensuring a positive experience.
The KIVO BPO Advantage
As the challenges in big and bulky last-mile deliveries grow, KIVO BPO stands at the forefront, armed with innovative solutions. Our expertise in navigating the complexities of last-mile logistics ensures not just the meeting but the exceeding of customer expectations. From streamlined fulfillment models to cutting-edge workforce management solutions, KIVO BPO is your partner in conquering the challenges of the ever-expanding landscape of big and bulky deliveries.
Join us in the journey of delivering excellence in the last mile!
