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The last mile in logistics: a revolution after Covid-19

04/11/2021

Covid-19 has brought about a change of scenery at all levels. Not only has it led to the adoption of delivery in medium and large restaurant chains, but it has also revolutionized the last mile in logistics. Large and medium-sized restaurant chains have grown tired of having to resort to last-mile delivery alternatives. This has caused them to look for last-mile solutions where they could manage the whole process without having to resort to intermediaries. 

This is how last-mile logistics works

Last-mile distribution logistics is the process that takes place from the time the product is picked up until it reaches the end customer. It is an increasingly important step in the hospitality sector, considering that food delivery has grown by 225% since the start of the pandemic, according to the latest GlobalWebIndex trend report. 

When it comes to food delivery, all orders are last mile, which is, paradoxically, the most complex part of that order’s journey. 

The challenge facing large and medium-sized restaurant chains when it comes to last-mile distribution logistics is often significant. While one of the objectives is usually to satisfy the consumer’s desire or need in the shortest possible time, the other has to do with the operation of the process, that is, to reduce the costs involved in the food delivery service.

We must bear in mind that the last mile in logistics requires a more detailed distribution of the product. Restaurant chains usually receive several orders that, in most cases, overlap in time and it is important to act quickly to meet them. This requires more vehicles than, for example, parcel delivery, and the chain’s reaction time also depends on external factors such as traffic in the city.

Own last-mile management

Now, “should I outsource the delivery of food at home”, you may ask. The rise of food delivery services has led many catering establishments to offer this service through their own channel in order to have a better control of the whole process and reduce costs.

This is the result of a study carried out by NPD and KPMG consultants in collaboration with Marcas de Restauración, which also shows that 17% of the sector’s turnover comes from this new sales channel.

Having a take away platform integrated into the entire business operation opens up different possibilities for the company. Platforms such as WinDelivery provide a great competitive advantage to large and medium-sized restaurant chains. Even if you have your own channel, you can choose whether you want to deliver food at home either with delivery drivers who work for the chain itself, or with delivery drivers from aggregators or third parties.

Keep in mind that this is a great option, and the most advantageous for the company. In addition, by having your own channel, you don’t have to give up the food delivery aggregators, since they can be perfectly integrated with WinDelivery software. Having your own channel is the best way to manage the last mile in logistics. Thanks to it, you will have all the information centralized on a single platform, even if you receive the order from different websites. In this way, you can optimize the quality of service and save on structural costs.

Without a doubt, last-mile logistics has evolved by leaps and bounds following Covid-19 to meet the needs of the hospitality sector. 

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