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Effective last-mile logistics is highly critical to success in the fast-paced world of the FMCG business landscape. Mastering the logistics of the last mile of delivery in the dynamic consumer market in the Philippines is key to enhancing customer satisfaction for organizations.
According to a Ken Research analysis, between 2022 and 2027, the Philippine Logistics Market will expand at a CAGR of 8.2%. This presents an excellent opportunity for FMCG businesses to improve their last mile of delivery to gain an edge over their competitors. But this comes with unique roadblocks, and FMCG companies will require novel strategies to master their last mile of delivery logistics.
In the retail industry in an archipelago like the Philippines, the last mile of product delivery poses many intricate challenges. Some common last-mile delivery challenges include the following:
Lack of visibility in the last mile of delivery can prevent managers from making swift decisions during unexpected events, causing delayed or missed deliveries.
Several on-ground constraints, like traffic congestion, closed roads, adverse weather, etc, can cause vehicles to stand idle on roads for hours, leading to delivery delays. Similarly, the lack of clarity in drop-off points or longer distances between delivery points in rural areas can lead to vehicles covering too much distance. This can cause last-mile delivery delays and increased fuel consumption.
The cost of the last mile of delivery is also significant. According to InsiderIntelligence, it amounts to 53% of overall logistics costs.
Customers expect free and quick delivery even with increasing daily orders. This makes delivery fulfillment challenging.
Mojro offers efficient and automated future-ready solutions to optimize the last mile of delivery of FMCG businesses. Planwyse, Mojro's dynamic route planning software, enables managers to determine efficient routes depending on daily loads. The ad-hoc or continuous modeling allows them to optimize their last mile of delivery, taking spur-of-the-moment orders into account. Mojro's Executewyse prevents visibility issues in the last mile of delivery by continuously updating managers and clients. This will help businesses take swift action during unexpected events.
Mojro's route and space optimization capabilities, expert trip monitoring, and enhanced visibility features reduce the number of trips taken to fulfill deliveries, considerably reducing costs. The improved vehicle utilization can reduce vehicle depreciation and fuel costs, making your business cost-effective.
Mojro's New Age solution offers retail procurement planners with multi-day, multi-leg, and multi-modal optimizers. This will help businesses make procurement decisions based on numerous constraints.
Mastering the last mile of delivery logistics for FMCG businesses in the Philippines is a multifaceted endeavor that demands strategic planning, technological innovation, adaptability, and a deep understanding of local dynamics. Businesses can achieve efficient, timely, and customer-focused last-mile deliveries by capitalizing on the capabilities of a logistics software offering optimization like Mojro.
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