A Guide to Leveraging Third-Party Couriers for Last-Mile Delivery

Last-mile delivery can significantly impact the customer experience. If a package is late, damaged, or never arrives, your customers may lose trust in your brand and choose never to do business with you again.

Third-party couriers, like Uber Eats and DoorDash have increased in popularity. Many retailers and eCommerce businesses are turning to these services to make the last-mile delivery process as smooth as possible. 

Should you? And if you do choose to switch, what makes third-party logistics the best option? Let’s find out.

What is last-mile delivery?

Last-mile delivery is the final stage in the journey to the customer—the last mile. It’s usually the shortest distance in the entire shipping process.

To understand last-mile delivery, consider the shipping process as it has legs. 

• First mile: This is the first leg where goods move from the manufacturer or seller to a distribution center or warehouse. 

• Middle mile: This is the transportation leg from one distribution hub or warehouse to another, often over long distances. It could even involve trucks, ships, trains, or planes crossing states, and it can also include international shipping.

• Last mile: This is the final leg of the journey. Goods go from the distribution center or local hub to the customer’s doorstep. Couriers or local delivery drivers usually handle last-mile delivery.

Pro tip: You could use garages as strategic storage points to manage last-mile delivery through third-party couriers.

By utilizing garages as mini-warehouses or distribution hubs in key locations, you can store frequently ordered products closer to your customers. This helps reduce delivery times and transportation costs. 

Third-party logistics (3PL) providers can pick up items from these nearby garages rather than from a distant warehouse, which streamlines operational efficiency and supply chain operations. The result is happier customers. Customers may begin to trust your brand so much that they’re willing to order multiple items simultaneously. This helps raise your average order value and build customer loyalty.

Challenges of last-mile delivery

Last-mile delivery is often the most challenging part of supply chain management. Why? Transportation is expensive. This graph shows how much transportation costs compared to other areas of logistics.
Below are a few other reasons why last-mile delivery can be challenging:

Unpredictable factors

Delivery drivers may face unexpected issues like traffic, weather, or sudden route changes. Congested traffic alone added $94.6 billion in costs to the trucking industry in 2021. 

Solution: A courier service uses GPS and tracking systems to adjust routes in real-time to minimize delays and keep deliveries on schedule.

Finding addresses

Couriers or delivery drivers must often navigate dense urban areas to find specific addresses. 

Solution: Couriers use advanced GPS and mapping tools to locate hard-to-find addresses accurately.

Recipient schedules

Customers may need to provide their signatures for specific deliveries. Let’s say the customer isn’t home because their schedule doesn’t allow it—whether working or running an errand. In this case, the delivery driver would have no choice but to return the package to the local distribution or fulfillment center. Customers can either schedule redelivery through their website or visit in person to get their package. 

Either choice is a big inconvenience to the customer. 

Solution: Couriers offer flexible delivery windows and contactless options to increase the chance of a successful drop-off. They can also deliver orders to the customer’s workplace. 

Package safety

A package can be stolen or damaged at any time. Let’s say you’re delivering perishable items like food or medication. Just as medical courier services have unique demands for healthcare logistics, food delivery services must also consider factors such as temperature control and adherence to regulatory guidelines. 

You’ll also need to deliver them quickly to maintain freshness and quality. 

Solution: Couriers ensure that packages are delivered safely to the customer’s location – They have secure delivery options, tamper-resistant packaging, and climate-controlled vehicles for sensitive items.

Complex routes

Finding an efficient route can be challenging when delivery drivers have many stops. 

Solution: Many couriers use route optimization software to plan the most efficient delivery paths.

Transparency

Consumers want to know where their order is and when it will arrive. This might require overhauling your entire supply chain. 

Solution: A third-party provider can help you improve transparency with live tracking and notifications so you can keep customers informed at every step.

Failed deliveries

If delivery fails, drivers may need to attempt delivery again the next day, which can cause delays.

Solution: Couriers often make multiple delivery attempts or secure pickup points.

Large fleets

Last-mile delivery requires a large fleet of vehicles and trained personnel, which can make it expensive.

Solution: Couriers use fleet management software to oversee and dispatch drivers. You’ll gain peace of mind knowing you’re achieving smooth, scalable logistics operations without lifting a finger.

Benefits of using third-party couriers for last-mile delivery

A third-party courier is a company that takes your customers’ packages the “last mile” from the warehouse to their homes. If you don’t have your delivery system, they can be a valuable part of your fulfillment process. Instead of purchasing a fleet of vehicles, you can hire a reliable distribution service to handle your deliveries.  Beyond quick delivery, outsourcing last-mile delivery to a courier comes with a wide range of benefits: 

Increased efficiency and cost-effectiveness

Third-party couriers make delivery operations easier and more affordable. When managing your delivery fleet, you’ll have to deal with vehicle maintenance, paying for fuel, and hiring drivers. However, a courier eliminates these costs and hassles, allowing you to focus on your core operations.

Expanded delivery reach

When you use a third-party courier, you can deliver beyond your immediate area. Couriers have wide networks and the resources to reach customers farther away. This allows you to open up new markets and expand your business’s reach without needing extra infrastructure.

Access to real-time tracking and data

Third-party logistics companies also offer 3PL technology that benefits your business and customers. Most couriers provide real-time visibility, which allows restaurants and customers to see where their orders are and when they will arrive. As a business owner, you can leverage this tech to optimize your entire supply chain (e.g., supply chain visibility), track delivery times, find patterns in your delivery process, and make adjustments to improve supply chain efficiency.

How to choose the right third-party courier for your business

Choosing the right third-party logistics service that aligns with your unique needs and business model will allow you to achieve smooth and reliable deliveries.

Here’s how to make the best choice.

Factors to consider

There are a wide range of factors to keep in mind when evaluating courier services:

• Delivery coverage: When choosing a courier, don’t just think local. Think big. Can this courier reach that customer two towns over? How about in another state? Make sure they have the range to support your needs, whether expanding a few miles or a few hundred.

• Price: Delivery fees can add up fast. Look for a courier with a clear pricing structure that won’t sneak in hidden fees. Do they offer a flat rate? Charge by the mile? Find out what makes the most sense for your orders—and your budget.

• Technology integration: The best couriers use advanced technology to keep you in the loop. Look for one that integrates with your ordering system, offers real-time tracking, and gives you data insights.

• Reliability: You need a courier that shows up when they say they will and takes good care of your packages. Read reviews, ask other businesses, or even run a trial to ensure they can live up to their promises.

• Customer support: Things happen, and you’ll want a team that’s got your back. Consider couriers with responsive, easy-to-reach customer service so you can resolve hiccups quickly. If something goes wrong, you don’t want to wait around for a reply.

Dispatch by Deliverect, third-party logistics service can help you find your way to customers’ hearts.

Our platform empowers you to monitor your deliveries in real time and receive accurate arrival times from your staff.

Partnering with multiple couriers

Why stick to just one courier? Having multiple logistics partners gives you the flexibility to offer your customer base more shipping options. Each courier has different strengths. Some offer timely deliveries locally, while others may be better for long-distance deliveries. By teaming up with a few shipping carriers, you’re covered even during busy times, like the holidays. And you can always pick the best option for each delivery. 

This way, you’re not locked into one provider’s prices or limitations.

Best practices for managing third-party couriers

Third-party delivery can be a great asset to your shipping and distribution process. But, a strong partnership requires strategy. Here are some tips to help you get the most from your courier relationships, ensure smooth deliveries, and keep customers happy.

Establish clear communication channels

One of the easiest ways to prevent delivery headaches is to establish open, effective communication with your courier partners. Both sides should have dedicated points of contact. Choose communication tools that make it easy to share updates quickly. With clear communication, you’re always a step ahead, whether sharing last-minute changes, resolving issues, or coordinating urgent requests. Consider using call center software to help you handle all inquiries, updates, and issues promptly and effectively, reducing the risk of delays or misunderstandings. This technology allows for seamless interactions between dispatch teams and courier partners. You get real-time tracking and status updates that you can communicate instantly. 

Monitor performance and customer feedback

To ensure your couriers deliver the quality you expect, track a few metrics regularly. Look at delivery speed, package handling, and customer satisfaction ratings. Don’t underestimate the value of customer feedback. If you notice consistent issues, bring them up to your courier so they can improve.

Negotiate terms and fees

Take the time to clearly outline your delivery needs and communicate them with your courier. Negotiate the best deal for your company. Maybe you need frequent deliveries, or maybe you’re concerned about specialized handling. What about weekend service?

Let your courier know what you need. This way, you get the best rates for the value-added services you need most, and your couriers understand what you expect of them.

Renegotiate periodically to keep things fair and beneficial for both sides as your business scales.

Future trends in last-mile delivery with third-party couriers

Last-mile delivery is constantly changing. And with it comes some exciting trends and technologies that share the future of how customers get their packages.

Here’s a peek into what’s coming and how it could change the delivery process.

Autonomous delivery vehicles

Autonomous delivery vehicles are starting to make waves in last-mile logistics. These self-driving vehicles can speed up deliveries, reduce shipping costs, and tackle traffic congestion. While we’re not quite seeing fleets of autonomous vans, companies are testing and developing them.

Many third-party couriers consider integrating these vehicles into their delivery systems to boost efficiency.

Drone deliveries

If autonomous vehicles are the talk of the towns, delivery drones are the buzz in the skies. Companies like Amazon (Prime Air) and Google (Wing) are already experimenting with drone delivery. And while it might not be mainstream just yet, it’s coming.

Drones can quickly deliver packages—even groceries. This can be useful in urban areas or places where traffic is a nightmare. Drones don’t need to deal with road congestion. Many logistics solutions providers are already working to incorporate drones into their services, which could drastically reduce delivery times and shipping rates.

Real-time data and AI-powered logistics

Okay, drones and driverless cars are pretty exciting. But what’s happening behind the scenes is just as revolutionary. Real-time data and AI-powered logistics are changing how couriers plan and execute deliveries. With artificial intelligence, couriers can optimize delivery routes in real time based on weather, traffic, or road closures. For example, let’s say there’s a traffic jam. A courier can use AI to reroute that package, raising shipping speeds and ensuring it gets to its destination faster.

Experts predict that AI could boost logistics productivity by more than 40% by 2035.

Conclusion

Now you know all about third-party couriers and how they can help make last-mile delivery more seamless and hassle-free—for you and your customers. Plus, you can reduce overhead costs. There is no need to pay drivers, worry about fuel, or handle vehicle maintenance. Third-party logistics will take care of all this for you.

As a business, you guarantee to get products to customers as fast as possible. So, if you’re considering working with a third-party courier, don’t wait too long.

It’s time to deliver on those promises.

About the author — Vergine Melkonyan:

Content Writer / Marketing Specialist

Experienced in writing SaaS and marketing content, helps customers to easily perform web scrapings, automate time-consuming tasks, and be informed about the latest tech trends with step-by-step tutorials and insider articles.