First Mile Delivery: The Start of a Successful Shipment

First mile delivery refers to the initial phase of operations within a supply chain. It typically commences immediately after a customer order is placed and concludes when the order is loaded onto a truck for delivery to the final customer.

This phase may also encompass transportation to intermediary locations within the supply chain, such as distribution centers and transit warehouses. The optimization of the first mile is essential, as any inefficiencies at this stage can have a significant ripple effect on the overall supply chain process.

Distinction Between First Mile Delivery and Last Mile Delivery

The primary distinction between first mile and last mile delivery lies in their respective positions within the supply chain. As indicated by their names, first mile delivery occurs at the beginning of the supply chain, while last mile delivery pertains to the final stages of the delivery process.

Another notable difference relates to the nature of distribution. First mile deliveries often involve compact yet bulky unit loads, such as palletized goods, which facilitate easier transportation and delivery. Conversely, last mile delivery is characterized by its complexity and labor intensity, as it involves smaller volumes of products intended for direct customer receipt.

This complexity presents challenges for companies, as they must balance the need for rapid deliveries with the necessity of managing transportation costs effectively.

First-Mile Delivery Operations The first mile delivery process encompasses several key operations from the moment an order is placed until it is ready for delivery to the customer:

• Picking: This initial stage involves the preparation of customer orders, which are promptly sent to the consolidation and/or dispatch area with a focus on accuracy. This operation is critical, as order processing costs can account for over 60% of a facility's total operational expenses.
• Consolidation and Packing: Rapid order preparation is rendered ineffective if the consolidation and packing stages are prolonged. During this phase, the picked orders undergo verification, the necessary documentation is printed, and the orders are subsequently moved to the dispatch area.
• Dispatch and Loading onto the Truck: After finalizing the order and ensuring all documentation is accurate, the order is loaded onto the transport truck, which is responsible for departing the facility and reaching its destination within the agreed timeframe and in optimal condition.
• Transportation to Intermediate Points Along the Supply Chain: The first mile may also involve transporting the finished product between a production facility and a central location or transit warehouse prior to delivery to the end customer.

Enhancing the efficiency of these operations is essential for improving the first mile delivery within the supply chain.