ALC - Dispatch

Statistics show that the lumber market is down slightly in 2024 so far, but with interest rates changing and economic volatility playing out in unexpected ways it can be difficult to predict what’s next for lumber distributors. One thing’s for certain, though: last mile delivery will continue to be an important part of lumber distributors’ operations.

According to a recent report from the Supply Chain Management Review, nearly two-thirds (64%) of top supply chain organizations said that improving customer service drove their new technology initiatives. That reason edged out cost control, digital transformation, and staying competitive in the market. In fact, it was the most-cited reason for diving into new technologies like Big Data, blockchain, and AI.

Here at DispatchTrack, there’s nothing we like better than connecting with the folks who work hard every day to make sure the right orders get to the right customers at the right time. That’s why, this year, the DispatchTrack team is headed to the NAFCD + NBMDA Annual Convention in New Orleans—book time to meet our team at the show or stop by booth #1419 to learn how the last mile building material delivery is evolving.

There are moments when an industry turns on a dime and the world is different from that time forward. The pandemic was one of those times that fundamentally changed how we approach deliveries and logistics. What started as emergency measures—contactless delivery, increased online shopping, and supply chain adaptations—became permanent. For fleet managers, the challenges, and especially the opportunities, this created are still playing out.

The logistics industry around the world is valued at $8-12 trillion per year. That’s a number that’s, frankly, almost impossible for a person to wrap their head around. The last mile, by comparison, was worth a marginally more comprehensible $1.33 billion.

In most industries, repeat business is the holy grail. Whether you’re delivering couches to end consumers or distributing cases of chips to minimarts and grocery stores, the difference between successful and unsuccessful businesses often comes down to how effectively you can make sure your customers want to work with you again and again. The cost of customer acquisition for most businesses can be pretty steep—it’s much more cost effective to keep your current customers happy.

Delivering on time is foundational to effective last-mile performance, but there’s more to a successful operation: Understanding and tracking the metrics that help drive performance, efficiency, and customer satisfaction. Identifying which last mile delivery KPIs to monitor can make the difference between operational excellence and costly inefficiencies, between a profitable business and a struggling one.

What is delivery route optimization?

Last mile delivery has become such a focal point for consumers in recent years that in some circles it’s easy to forget how complex the first mile and middle mile of the supply chain can be. The last mile continues to be the most resource-intensive leg of the journey—and often the one that’s most prone to going wrong—but the process leading up to that point can be complex and have serious implications for logistics costs.

Enhanced Last-Mile Technology Helps Distributors Meet New Food Safety Reporting Requirements