Thanks of COVID-19 consumers got used to shopping online. This shift in their shopping habits is refocusing the logistics industry on last-mile delivery services.

Logistics firms will now need to develop their last-mile capabilities to match the modern times.

Since online shopping has grown in popularity over the past decade or so, online retailers and logistics firms have been driven to find new ways to satisfy their consumers ‘ growing needs. Order fulfillment has always been the cornerstone of every retail company but the quick delivery is what consumers really want these days. The challenge for e-commerce businesses is to accelerate distribution for their customers while still holding down their own costs.

Related Post: How will Life be After Lockdown?

Modern technology has changed the way companies do business, particularly for the better. Unfortunately it has created some specific challenges as well. The same technology that allows consumers to buy goods by pressing a button comes with the assumption that the product will also be delivered quickly. Simple, secure, and effective order fulfillment is the secret to retaining customer loyalty, but it’s also one of the toughest challenges every company has to face.

Keep reading to learn more about last mile distribution and how to improve order fulfilment.

Nonetheless, What is Last Mile Delivery?
Simply stated, the last mile distribution is the transfer of goods from a transport hub or warehouse to its final destination for distribution. In most cases a personal residence is the final destination. The aim of last mile distribution is to deliver goods as quickly as possible to the consumer while reducing company costs.

Last-mile distribution problems because of COVID-19
This crisis has impacted the logistics industry deeply, beyond undermining other industries in the global economy.

Lack of resources to cope with a sudden rise in demand: most distribution companies are struggling to meet a sudden increase in demand online. With limited resources they work hard to handle large distribution volumes.

Handling of orders issues: Logistics companies face difficulties in collecting and handling orders with the rapid increase in deliveries. Restricted resources have made life harder in the customer fulfillment centers. Know how to get perfect precision when handling deliveries with Locus.
Jump in last-mile delivery costs: The last-mile delivery costs have also risen with an rise in distribution volumes. This has contributed to an increase in maintenance costs, cost of idling, cost of fuel and cost of labor. Add to that free delivery and reverse logistics, it’s a tightrope walk indeed.

Dairy giant Amul has started offering housing societies and resident welfare associations (RWAs) retailer margins where it supplies necessities directly in the midst of the ongoing shutdown, with societies turning main channels of consumption.

The housing societies’ margins range from 8-12 percent everywhere, and Amul is directly distributing bulk orders of milk , cheese, ice cream to more than 500 societies across 10 cities, the company said.

“There has been incredible demand from residential complexes around towns since we started the exercise. The retailer margins on different items are being passed on to the housing societies, “reported Amul managing director RS Sodhi.

“Societies likewise interested in gaining strong retailer margins,” he said. Sodhi added that in cities with large red zone footprints, bulk orders per distributor for large housing societies ranged between 75,000-90,000 per day.

Others including biscuit manufacturer Parle Products said some retailers began sharing part of their profits with RWAs in the event that orders are in bulk.

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DMart, which operates more than 200 stores across the country, has launched ‘store on wheels’ — a service that will allow DMart trucks carrying critical grocery products for three hours to park in residential companies. The retailer did not comment on whether local authorities are facing opposition from the distribution workers pushing the vehicles.

MD and CEO of Metro Cash & Carry, Arvind Mediratta, told FE that the company was deploying its own trucks to pick up supplies from several warehouses. The company has also launched its e-commerce app to help kiranas order online and give them access to stocks. The company is taking care of the distribution to the business customers, Mediratta said. The availability of items such as Nestle Maggie and HUL toiletries is small , making room for brands in the local area. “Customers are more interested in getting the product than in becoming aware of the brand affinity,” Mediratta said.

Grofers said it launched ‘Society Group Orders’ in a statement on Wednesday, a program in which it has partnered with RWAs of 100 companies across leading metros to make critical products available to more clients. The organization plans to extend the tie-up to other cities in the near future.

Karthik Venkateswaran, co-founder and CEO of B2B startup Jumbotail, said the company is collecting stocks from FMCG companies’ distributors and shipping them to Kirana stores.

Last Mile Delivery Suggestions For Small and Medium Businesses

As you know that housing societies are looking to tie up with brands that can deliver directly to their society in bulk orders. Brands like you can find societies that are near you and connect with them and put up stalls on a daily basis so that you can deliver safe and also at your customers convinience.

When can you find housing societies near you and connect with them?

Myrsa is a platform where you can find acces to the societies that are close to you and are looking for bulk deliveries.

You can book a residential space through them on a hourly or a daily basis and have your good delivered. As this is going to stay for a while you must register on Myrsa now and connect with housing societies even after lockdown. This has now become a lifestyle change and you as a brand must keep up to it!

The Center has suspended air, metro, and inter-state bus travel across India for around one and a half months to stop the spread of coronavirus. K ASIF has also been shut down, apart from financial, political, economic, religious and other gatherings, hotels, restaurants, cinemas, malls, gyms, sports complexes, schools, colleges …

Yet even though the lockout is lifted, or more curbs go, life is never going to be the same again. Significant changes are awaiting people as the country has new ways to shop, ride, book in hotels, watch movies or even dine out.

Many businesses engaged in offering services such as air travel, retail, food & beverages (F&B) and hotels are expected to reduce their offerings in the initial months as they comply with social distancing requirements and cut operating costs in the face of a tough business environment.

Post-lockdown preparations are charted as the government prepares to lift new restrictions.
Most businesses plan to remain depressed by demand at least until October until the festive season elevates consumer sentiment.
Hoteliers, airlines, retailers and shopping centre managers state that when they re-open, they plan to play it safe.

After zoning districts and areas between red, orange, and green based on case numbers for coronavirus, the government has significantly eliminated curbs outside hotspots and authorized the opening of stand-alone shops and establishments. It has signaled that after 17 May, the last date of lockdown 3.0, further economic activity will be permitted.

Many industry experts believe the epidemic would result in drastic changes in consumer and business perceptions, habits, and expectations that will reshape their products and services accordingly. Consumers would be more worried about their wellbeing and expect the service providers to be more hygienic.

SHOPPING MALLS

According to industry insiders, consumer experience does not stay the same at shopping malls. Mall owners are charting new rules taking customer footfall and construction structure into account.

Manoj Gaur, managing director of the Gaurs Group, said that large-format stores such as Big Bazaar could be advised to restrict entry and obey social distancing norms, while preference could be given to small stores to start operations.

“It would be best for large format stores to uphold socially distancing norms, high hygiene standards and restrict people ‘s entry,” he said.

On the possibility of lower revenue and high operational costs, Gaur said the government would need to announce a relief package that includes lower GST, without which many jobs could be lost.

Wholesale retailer Metro Cash And Carry India Pvt Ltd have strictly prohibited customers who do not wear masks or are identified at 99-100 temperatures during thermal screening in what appears to offer the glimpse of shopping stores post lockdown.

“We have required wearing masks for each client. We do infrared temperature scans for all and those with 99-100 temperatures are not permitted. Only small people are permitted every hour, 50-60 versus 500-600 at any given time before. Cashiers are expected to wear face masks to guarantee the safety of both customers and employees, “said Metro Cash & Carry India MD and CEO Arvind Mediratta.

In addition, the Indian arm of the German retailer has started to send customers appointments over the phone or online to visit the store so no crowding occurs.

Footwear and clothing retailer Woodland will also restrict the number of customers entering the store at one time and allow them to wear gloves and masks.

The company is working on plans for customers to disinfect a product after trial.

“Normally when we try shoes and all of them, we have disposable socks. Likewise, we’ll see if a product that’s being tested can be disinfected, so we’re working on something like this even with garments,” the expert said.

Cinema

Even movie-goers can be in for a disappointment as new releases are highly unlikely.

They will have to make peace with certain films that have been pre-released.

Movie production has gone haywire and it is inevitable that multiplexes will return to old films.

Upon agreement on shutdown, multiplex operators will discuss a potential action plan with distributors.

“It’s hard to tell. We ‘re going to have to see how things go. At this point, we ‘re going to have to start talking to distributors to see what kind of content pipeline there is and what all the choices we have. So, it’s hard to predict at this point in time,” said Multiplex Association of India (MAI) President Deepak Asher.

Asked whether to play old Hindi movies, Asher said it was an option but there would also be English movies and other content.

Discussing the post-lockdown re-opening plan, the MAI president said it was proposed that multiplexes should not sell more than 50% of the seats in order to maintain a seat difference between two men.

“We ‘re going to schedule film and intermission timings to make sure so many people don’t come to lobby or other locations,” he said.

Unlike other service providers, airlines are also facing a double whammy of low demand and higher costs to enforce social distance requirements.

A top private airline executive said putting any social distancing standard in place has a cost. There is also confusion about some states which enforce a longer lockdown in the red and orange zones, which affect flights.

If the air travel ban is removed and states enforce lockdown, this will pose challenges for both passengers and airlines.

“Grounding the aircraft is easier than flying it again! But when you ground the aircraft you park it wherever you find it, so it is parked all over the country, not usually in official parking bays with fuel pump connections, etc. It would take several days longer to bring them back into service than to ground them,” he said.

The industry expects some pent-up demand in the initial days, as the service will be used by people trapped in different locations. But demand will then slump at least until people felt free to travel.

This is why airlines should sell fewer flights and sectors. The nodal Ministry of Civil Aviation is scheduled to announce the opening of domestic flights for passengers, airports and airlines with separate riders.

Private airlines such as Spice-Jet, IndiGo and Vistara have opened flight reservations with effect from 1 June 2020.

HOTELS

Similarly, hotels are also anticipating demand to pick up after having lifted the lockdown for at least six months. Since other limits, such as on public meetings, are expected to remain even after the lockout, hotels won’t provide space for conventions, weddings and events. The hotel industry is anticipating a substantial reduction in manpower and other costs. They are unable to offer all services at once, in the event of lower demand.

“Business will come back starting with accommodation. In terms of meetings, conferences, weddings, we ‘re looking at a much longer period until the states allow you to do those things and people feel confident getting together in secluded areas. So, we ‘re probably looking at accommodation first and then dining room service.
Bakaya said payroll and electricity were the two main expenses and in the face of reduced demand, they should be rationalised.
“If there is no list, how can we pay? Where does the money come from,” asks the hotelier