Consequence of Failure in the Final Mile [Part 2]
Last month, we kicked off a Final Mile Delivery blog series and discussed what ‘final mile’ means and why is it critical to you, our clients.
We are now jumping in for part two as we talk through mistakes often found in the final mile, how to avoid those mistakes, and what the consequence of failure is of this delivery stage.
What Are Some Common Mistakes Made When Organizations are Planning Their Logistics Puzzle of Final Mile?
It could sound like common sense, but it is usually situations when the wrong equipment and tools are brought or the improper attire of truck drivers upon site arrival. In the medical device world, there are strict requirements like PPE (hardhats and steel-toed boots) needed at some delivery locations.
When you are not focused on the detail of the final mile, things easily can go wrong and your company’s perception could be at risk in the end. While some of these mistakes are avoidable, sometimes they are just circumstantial.
What Can I Do to Avoid the Circumstantial Mistakes?
First and foremost, step one is to make sure you are collaborating and working alongside the right logistics partner. We know that network issues happen and people make mistakes, even when you have the greatest people on your team as we claim here at Pegasus. Having a partner with innovative technology solutions, like real-time visibility platforms and container tracking, helps to mitigate and avoid circumstantial mistakes. When paired with tools to micromanage the final mile process, like delivery checklists and site profiles, the client is set up for success.
How Do I Know if My Team Needs Assistance in the Final Mile?
Drivers not on-site, pictures not taken prior to delivery, product damages, installation technicians not able to get ahold of truckers, or any communication gaps within the teams…. These may be some signs that your final mile delivery has been or is going poorly.
Let’s say, you’re an IT services company. The core competencies of your business have your attention and there are multiple moving parts to your job, whether that is highly demanding customers’ schedules shifting consistently, or large projects. Your focus is on selling server racks and not so much the logistics side of things.
By working with a logistics provider that is the final mile expert, you can now focus on your core business while your partner accomplishes the thing they do for a living: moving high-value goods from point A to point B while understanding all potential risks in the process.
What is the Consequence of Failure in This Process?
At Pegasus, we talk about the ‘single neck to choke.’ At times, one of our client’s suppliers will handle the initial part of the shipment and we will just handle the final mile portion. In situations like these, the supplier could possibly not package the product properly or position it incorrectly in the truck; however, they are expecting a tremendous final mile experience.
Having a partner that owns the entire process gives you the ability to not just do damage control when the final truck delivers, but to really handle the entire shipment properly at the front end too. This prevents the final mile drivers from repairing the product, repackaging it, or even worse not being able to deliver it.
What are the Cost Implications of This Damage Control?
With shipments of consequence, there’s a lot of sensitivity surrounding the final mile. This can make or break any specialized project. In many cases, your clients are on a very strict SLA deadline as installers, technicians, or construction workers are often scheduled around the delivery date of a product. If your product isn’t there or arrives damaged, your client could have significant SLA penalties associated with rescheduling or missing a deadline.
If the shipment was not properly packaged or handled on the front end of the shipment, your high-value shipments have the risk of damages. For anything that is damaged and needs to be repaired, it oftentimes must go back to the original shipping point, in which you could be charged by the day a certain percentage or dollar amount.
The consequence of failure can cost you additional thousands of dollars on top of the transportation costs themselves, along with the potential to negatively impact your company’s reputation and more.
At Pegasus, we understand the critical nature of the final mile delivery. Our goal is to make you look good, and we will collaborate as a team and learn your business to make it happen. Fill out a Contact Us form below or call 800-997-7226 for further information on our Final Mile and White Glove Delivery services.