Categories: Distribution Management SystemProduct Digitalization Management

Get to know the 3 Processes of Delivering Goods to the Hands of the Customer!

The process of sending goods from picking up from the hands of producers to reaching customers certainly goes through long stages. Starting from delivering goods, sorting, and distributing, until finally, it arrives in customers’ hands. These stages are divided into 3, namely first-mile, middle-mile and last-mile.

1. First-Mile

The first mile is the first step in the supply chain process. At this stage, there is a movement of goods from the factory/producer to the distribution center or warehouse, which will later go through the sorting stage. However, the definition of first-mile may differ depending on the industry. For example, for retail stores, this stage occurs when goods from suppliers are delivered to the retailer’s warehouse. At the same time, manufacturing defines this stage as the movement of goods from the factory to the warehouse.

The more goods that are processed, the bigger the warehouse required. As a result, the cost of building/renting a warehouse is increasing. To minimize costs, you can use Inventory Management Software to manage and optimize warehouse usage.

2. Middle-Mile

At this stage, the goods that have been sorted in the warehouse are then distributed to distributors through various shipping routes, namely land, air, and sea. From the distributor, the goods will then be distributed to the shop that made the purchase. However, nowadays, many retailers skip the middle-mile stage. Instead, from the first mile, they send it directly to the destination (last mile).

During the shipping process, shippers often lose track of their goods. Therefore, transparency of the status of goods is still often a cause for concern. Especially, if the goods sent are easily damaged, spoil quickly, are expensive, and so on. You can use Product Tracking Software to monitor the shipping process and track the movement of goods.

3. Last-Mile

As the name implies, the last mile is the last stage of the supply chain process. At this stage, the goods that have been sent to the stores can be directly distributed to the final destination or customer location. Customers can also access it directly by buying goods in the store.

If you deliver goods without the help of the expedition, you can optimize the delivery process by using Software Delivery. With the use of the system, you can cut logistics costs by making the best strategies, such as choosing the suitable courier and fleet and scheduling the closest delivery route.

It is undeniable, the process of shipping goods still has many challenges. However, with the sophistication of today’s technology, you can still optimize the process to meet customer expectations. The Advotics system can help you achieve excellence in your supply chain operations.