Optimize your last mile logistics: Increase margins with a Remote Analyst
Last mile logistics—the final segment of the delivery chain where trucks deliver packages and goods directly to customers’ doorsteps—plays a crucial role in the logistics sector. However, this process presents unique challenges, such as varying delivery locations and associated costs. DataMondial supports companies in this sector by providing accurate cost recording and calculation, enabling them to operate more efficiently and cost-effectively.
Challenges in Last Mile Logistics
Last mile logistics faces specific challenges that impact costs:
- Varying Delivery Locations: Delivery costs can vary significantly depending on the destination. Deliveries in urban areas are generally less expensive than those to remote locations, such as farms on unpaved roads.
- Surcharges: Additional costs often arise due to hard-to-reach or remote locations. These surcharges can substantially increase the final transport costs.
For companies engaged in last mile logistics, such as road transporters and e-commerce providers, it is crucial to accurately track and manage these costs. This is where DataMondial comes into play.
Manage and Optimize Costs
DataMondial assists in managing and optimizing these costs through a comprehensive and detailed approach to cost recording and calculation. Our services include:
- Recording Actual Transport Costs: We document the actual costs of each transport, including all variable expenses such as fuel, tolls, and labor.
- Comparing with Estimated Costs: We compare the actual costs with the pre-estimated costs to identify any discrepancies. This helps companies gain insight into their cost efficiency and make necessary adjustments.
- Recording and Analyzing Surcharges: We meticulously track applicable surcharges, such as extra costs for deliveries to remote or hard-to-reach locations. This enables companies to pass these costs on to their customers, thereby protecting their profit margins.
Some examples
An example of our support is a large transport company that works for various e-commerce businesses. This company delivers packages to a wide range of locations, from urban areas to remote farms. We assist them by performing the following tasks:
- Cost Recording: We track the costs of each delivery, including fuel expenses, labor, and any additional surcharges for challenging deliveries.
- Cost Analysis: By comparing the actual costs with the pre-estimated costs, we help the company understand where the most significant cost differences lie. This allows them to adjust their rates accordingly.
- Reporting: We provide detailed reports that offer insights into the cost structure and assist in strategic decision-making. These reports include differences between expected and actual costs, as well as specific details about the surcharges.
Our approach also involves creating detailed work instructions and manuals. This ensures that our team delivers consistent and reliable output. These work instructions are highly detailed and may include complex decision trees, ensuring that each situation is handled correctly.
Pre- and Post-Calculation
An essential aspect of our service is the pre- and post-calculation of transport costs. We help companies make a detailed estimate of the expected costs before the transport takes place (pre-calculation) and compare these with the actual costs after the transport is completed (post-calculation). The difference between these calculations can lead to strategic decisions in the company’s business model.
DataMondial supports companies in the last mile logistics sector by accurately recording and analyzing their costs. This enables companies to operate more cost-effectively and make strategic decisions based on detailed cost information. With our assistance, companies can reduce administrative burdens, improve customer satisfaction, and focus on their core activities.
Want to Learn More about our Remote Analyst services?
Contact us for a non-obligatory consultation. Call us at +31 (0)10 442 18 78 or email info@datamondial.com.