{"id":1028,"date":"2021-08-25T19:47:16","date_gmt":"2021-08-25T19:47:16","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/first-mile-delivery\/"},"modified":"2025-12-25T21:16:58","modified_gmt":"2025-12-25T21:16:58","slug":"first-mile-delivery","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/first-mile-delivery\/","title":{"rendered":"Understanding First-Mile Delivery & Why it\u2019s Important for Your Store"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is first-mile delivery?<\/a><\/p>\n\n\n\n

First-mile vs. last-mile delivery: what\u2019s the difference?<\/a><\/p>\n\n\n\n

Why first-mile delivery is important for ecommerce<\/a><\/p>\n\n\n\n

First-mile delivery best practices to optimise your supply chain<\/a><\/p>\n\n\n\n

Streamlining first-mile & last-mile delivery with ShipBob<\/a><\/p>\n\n\n\n

First-mile delivery FAQs<\/a><\/p>\n\n\n\n

<\/a><\/p>\n<\/div>\n\n\n\n

In ecommerce logistics<\/a>, there\u2019s been a lot of buzz on the topic of last-mile delivery.<\/span><\/p>\n\n\n\n

Take a look at how \u2018last-mile delivery\u2019 Google searches have grown over the last four years:<\/span><\/p>\n\n\n\n

\"\"<\/p>\n\n\n\n

It\u2019s understandable \u2014 efficient <\/span>last-mile delivery<\/span><\/a> has a direct impact on <\/span>customer loyalty<\/span><\/a> and profitability. If a shipment is delayed<\/a> or a customer receives the wrong item, it can significantly reduce customer satisfaction. <\/span><\/p>\n\n\n\n

And if a business is paying too much in shipping costs, it can majorly reduce profit margins.<\/p>\n\n\n\n

Providing an exceptional delivery experience for customers is a constant balancing act that many fast-growing online retailers struggle with. But what if there was a way to improve last-mile delivery earlier on in the<\/span>ecommerce supply chain<\/a>?<\/span><\/p>\n\n\n\n

It turns out the first-mile delivery stage has a direct impact on your shipping experience<\/a>, and improving it will deliver substantial downstream gains.<\/span><\/p>\n\n\n\n

In this article, we\u2019ll break down what first-mile delivery is, why it\u2019s important, and six best practices you can use to improve your first-mile delivery process. <\/span><\/p>\n\n\n\n

What is first-mile delivery?<\/h2>\n\n\n\n

First-mile delivery refers to the process of transporting finished goods from a manufacturer or supplier\u2019s facility to an online retailer\u2019s warehouse or multiple <\/span>distribution centres<\/span><\/a> \u2014 the last destination before products are delivered to the end user.<\/span><\/p>\n\n\n\n

It\u2019s typically the first step of <\/span>order fulfilment<\/span><\/a> and requires thorough supply chain planning<\/a>, from understanding production lead times to developing a warehouse receiving process.<\/span><\/p>\n\n\n\n

First-mile delivery also relies strongly on an optimal location. For instance, choosing between a domestic or overseas supplier will impact how quickly you can receive new inventory and where you story inventory based on customer location and demand can impact shipping costs and timelines.<\/p>\n\n\n\n

First-mile vs. last-mile delivery: what\u2019s the difference?<\/h2>\n\n\n\n

When looking at the direct-to-consumer<\/a> (DTC) model, first-mile deliveries refer to the movement of products from supplier to a retailer, and last-mile deliveries rely on shipping couriers to move packages from the shipper to the end customer. <\/span><\/p>\n\n\n\n

Another key differentiator is size of shipments. First-mile deliveries typically transport large pallet-sized shipments with unbranded packaging since goods are ordered and transported in bulk or through freight<\/a>. <\/span><\/p>\n\n\n\n

Once inventory is delivered to where fulfilment will take place, it\u2019s up to the retail business owner to double check the delivery and ensure what was shipped matches what was ordered. This process is crucial as it ensures there are no inaccuracies in physical inventory<\/a> counts and helps to avoid inventory shrinkage<\/a>.<\/p>\n\n\n\n

Last-mile deliveries involve smaller, sometimes branded shipments because they mostly transport individual orders to end customers. These orders can also be packaged to emphasize the unboxing experience<\/a>, which can include custom packaging<\/a>, marketing inserts, and more. <\/span><\/p>\n\n\n\n

Why first-mile delivery is important for ecommerce<\/h2>\n\n\n\n

As the first stage in the supply chain, first-mile delivery has a major impact on a business\u2019s retail fulfilment<\/a> process. <\/span><\/p>\n\n\n\n

As 2021 ecommerce sales are set to hit $4.48 trillion<\/a> in the US alone, it\u2019s becoming more evident that the \u201cfirst mile\u201d is still inefficient and lacks transparency<\/a> in many ways.<\/p>\n\n\n\n

Inefficient first-mile delivery can have a trickle down effect that will impact supply chain efficiency<\/a> throughout the fulfilment stage, which can then slow down last-mile delivery. <\/span><\/p>\n\n\n\n

Some of these inefficiencies often start with improper purchase ordering. For instance, i<\/span>f there is a delay in production or the wrong inventory is delivered, it\u2019s enough to disrupt the rest of your supply chain, especially if you have orders coming in that depend on the next shipment of inventory.<\/span><\/p>\n\n\n\n

Fortunately, many issues that occur during first-mile delivery can be solved by finding ways to enable more visibility, diversify your supplier network, and execute a thorough warehouse receiving<\/a> process.<\/span><\/p>\n\n\n\n

First-mile delivery best practices to optimise your supply chain<\/h2>\n\n\n\n

Now that you understand the importance of first-mile delivery, h<\/span>ere are some best practices that can help optimise first-mile delivery for a more resilient supply chain<\/a>. <\/span><\/p>\n\n\n\n

1. Partner with a tech-enabled 3PL<\/h3>\n\n\n\n

It\u2019s always an option to manage logistics yourself, but if you\u2019re ordering large volumes of inventory and dealing with a high order volume, you\u2019re going to need the space and the support from an expert.<\/span><\/p>\n\n\n\n

A technology-enabled 3PL<\/a><\/span> like ShipBob handles all the logistics associated with warehousing<\/a>, fulfilment, and shipping.<\/span><\/p>\n\n\n\n

When you first get started with a 3PL<\/a>, you can determine which locations within their logistics network<\/a> you\u2019d like to store inventory in. <\/span><\/p>\n\n\n\n

From there, you can have inventory delivered from your supplier directly to the fulfilment centre, where logistics experts will conduct a thorough inventory receiving check to ensure what was ordered matches the paperwork. <\/span><\/p>\n\n\n\n

For instance, ShipBob\u2019s global fulfilment<\/a> network makes it easy for brands to allocate inventory<\/a> based on where their customers are located.<\/p>\n\n\n\n

To ensure the completion of a smooth first-mile delivery, ShipBob\u2019s WRO system<\/a> (for warehouse receiving orders) is designed to make sure you have the information you need to send us your inventory, so everything is accounted for and stowed away properly.<\/p>\n\n\n\n

Once inventory is received, you can track real-time inventory<\/a> flow from your ShipBob dashboard. Since all inventory and order data is aggregated in one place, you can pull inventory records<\/a> and determine the optimal time to replenish inventory<\/a> and set automation reorder notifications<\/a> when inventory is running low.<\/span><\/p>\n\n\n\n

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\u201cIn terms of tracking inventory, we use ShipBob for everything \u2014 to be able to track each bottle of perfume, what we have left, and what we\u2019ve shipped, while getting a lot more information on each order. The analytics are super helpful. <\/span><\/em><\/p>\n\n\n\n

We download Excel files from the ShipBob dashboard all the time and use them to analyse everything from cancelations, to examining order weights, to checking on whether ShipBob is shipping orders on time. <\/span><\/em><\/p>\n\n\n\n

Even the way their warehouse receiving orders (WROs) work for sending inventory is very straightforward.\u201d <\/span><\/em><\/p>\n\n\n\n

Ines Guien, Vice President of Operations at Dossier<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n

2. Map out your supply chain process<\/h3>\n\n\n\n

One of the ways you can optimise your supply chain<\/a> is by mapping it out, starting with first-mile delivery. <\/span><\/p>\n\n\n\n

By going through each step of your existing supply chain closely, you\u2019ll be able to identify where the inefficiencies lie and the steps needed to optimise and improve processes.   <\/span><\/p>\n\n\n\n

For example, let\u2019s say that your warehouse team contacts your supplier when your stock is running low to <\/span>restock inventory<\/span><\/a>, but it\u2019s all done manually. <\/span><\/p>\n\n\n\n

Since the manual process is time-consuming, it\u2019s prone to human error. At this point, y<\/span>ou might want to consider automation and other types of supply chain technology<\/a> to reduce the manual work associated with reordering inventory and also cut down on human error. <\/span><\/p>\n\n\n\n

3. Create a clear warehouse receiving process<\/h3>\n\n\n\n

Another first-mile delivery optimisation best practice is to a develop a thorough <\/span>warehouse receiving<\/span><\/a> process, which<\/span> is important for accurate inventory tracking; it outlines how you or your warehouse team will receive inventory shipments sent by your supplier.<\/p>\n\n\n\n

Here is an overview of the basics steps:<\/p>\n\n\n\n