Last-mile logistics is the final stage of the goods delivery process, namely from the distribution center or warehouse to the final consumer. In the supply chain management series, last-mile logistics plays a crucial role whose results will have a big impact on customer satisfaction. So it is not surprising that business owners’ concern about this delivery method is quite high, especially those focused on the food and beverage (F&B) sector.
The Importance of Last-Mile Logistics for the F&B Industry
The food and beverage industry itself is one of the largest industries in the world. This industry is responsible for producing and distributing food and beverages to consumers around the world whose overall demand is almost never decreasing.
You can imagine if a production factory had produced a large amount of food in good condition to meet consumer needs. However, it all ended up in the trash because of the chaotic final delivery process.
Not only does the company suffer losses, but the impact on humans and the environment is also very bad. So, that is how important the role of last-mile logistics is in the food and beverage industry.
If we had to explain it, this is roughly the impact of last-mile logistics on the food and beverage industry:
- Determining customer satisfaction levels: Food and beverage industry customers expect their goods to arrive quickly, on time, and in good condition. The slightest mistake in the delivery process has a serious risk of reducing their level of satisfaction, for example when food that should be warm arrives cold, or damage is found in the plastic packaging.
- Sustainability impact: As we mentioned above, the food and beverage industry has a significant environmental impact. Last-mile logistics carried out correctly can help reduce greenhouse gas emissions, pollution, and the risk of additional food waste.
- Business Competition: Lastly, obviously related to the business itself. Satisfied customers mean that golden opportunities are open for second, third and so on purchases. On the other hand, a messy first impression has the potential to lead customers to switch to another brand.
Last-Mile Pain Points in the F&B Industry
Now you understand how important the role of last-mile is in the delivery of food and beverage supplies. So, the accuracy of this logistics process should not be a compromise and must always be achieved. However, reality doesn’t always meet the ideal concept, right?
In fact, there are things that are big challenges in last-mile logistics in the food and beverage sector.
Huge market reach
Food and drinks are usually attached to the culture of the region where they originate. However, what is interesting here is that almost all people in the world have a tendency to want to taste flavors from other regions.
Therefore, the market available for the F&B industry is very wide and almost unlimited. So far it still sounds good, the market is wide, demand is high, sales performance is good, and business continues to grow.
The problem is, that distribution to such a wide market ultimately requires costs that are not cheap at all. Are consumers willing to pay shipping costs that are more expensive than the price of the food?
Not to mention discussing the risks that may occur along the long journey. Certain types of products may be damaged if delivered late, even though conditions on the road are not always as expected.
Continuing the previous point, food that is placed in a container together can contaminate each other if one of them starts to rot. In this case, even if procedures are followed accurately, last-mile logistics remain very risky and challenging.
The bad part is that this final stage of delivery will deliver food and drinks that may no longer be suitable for consumption to the final consumer.
Sudden changes in demand
Consumer demand for food and beverages can change suddenly, for example during holiday seasons or large events. It’s not just a matter of quantity, sometimes market conditions require you to release a new variant of a certain type of food.
This can make it difficult to predict demand and manage stock. Especially if deliveries are made periodically with an uncertain number of goods. This will clearly cause problems for producers if logistics managers do not cooperate.
You certainly didn’t open this article just to look at the risks of problems that might befall your business. We know that what you need most is a solution.
First, you yourself must have thought of some easy solutions, such as only selling long-lasting food products or changing logistics methods. To be more sure, please study the solutions we suggest below!
- Technology: Technology can help improve the efficiency and effectiveness of last-mile logistics. For example, the use of tracking technology can help companies track shipments and ensure that goods arrive on time.
- Collaboration: Collaboration with logistics partners can help companies reduce costs and increase efficiency. For example, companies can work with courier companies to send goods directly to consumers.
- Business model changes: Companies can change their business models to reduce dependence on last-mile logistics. For example, companies may switch to a direct-to-consumer (D2C) delivery model.
From our discussion this time, there are several points that you need to underline, including:
- Last-mile logistics is a significant challenge for the food and beverage industry.
- Companies need to understand these challenges and develop solutions to overcome them.
- By overcoming last-mile logistics challenges, companies can increase customer satisfaction, competitiveness, and sales.
Additional tips for those of you who are involved in the world of food and drink: don’t be lazy about doing research!
Find out which logistics service has the best quality features, service, and integrity in helping F&B businesses like yours manage their product supply. It’s better to spend time doing research, rather than wasting your efforts on logistical mistakes that lead to losses.
You can visit our blog here and start diving into basic knowledge and trends that continue to develop in the world of logistics and shipping. Also, feel free to check out our services that might be a good fit for your business!