Almost everyone is familiar with the last mile, including those who typically don’t deal with logistics. This is where the supply chain becomes tangible for the recipient. The first mile, on the other hand, marks the beginning of the logistics value chain. Since all subsequent steps build on it, the first mile is of enormous importance for delivery quality. Which processes take place during the first mile, and how can they be optimized?
The Last Mile Surely Is Crucial, the First Mile Counts, Too
Numerous processes take place between the placement of an order and its final delivery to private or commercial end customers, culminating in the last mile. Consumers typically only notice this final stage of the supply chain.
This is why companies recognize the importance of last-mile delivery in providing a positive customer experience. However, this should not lead to neglecting the first mile. While there is no cause for prioritizing one section over another, the importance of the first mile cannot be overstated. If something goes wrong here, it negatively impacts all subsequent processes. Even the best middle and last mile logistics cannot always compensate for time and quality losses resulting from an error in the first mile.
What Is the First Mile?
In any case of application, the first mile is the starting point of the logistics value chain. Nevertheless, specific processes can vary depending on the industry.
- For manufacturers, the first mile refers to the transportation of finished products from the production site to a central warehouse or distribution center.
- For brick-and-mortar retailers, the first mile refers to the transportation of ordered goods from a supplier’s warehouse to their own, such as a company-owned regional distribution center of a supermarket or apparel chain.
- For online retailers, the first mile refers to transporting ordered goods from their location or warehouse to the first logistical transfer point, such as the regional distribution center of a logistics service provider.
The Complexities of Supply Chains Vary
For a manufacturing company that exports its products to another country, the first mile involves preparing the freight for shipping abroad. Typically, this implies consolidating goods into palletized shipments or containers.
For online retailers – be they small or large – the first mile is the process by which individual shipments are prepared for dispatch and handed over to parcel services. The service provider collects the individually packaged orders and carries them to the regional distribution center. There, the shipments are prepared for onward transportation to their respective regions.
Sticking with this simple example: onward transport to the logistics center in the recipient region – i.e., transport between two distribution hubs – represents the middle mile. Delivery to the end customer constitutes the last mile. Transporting industrial products from a production site to a recipient company generally requires more steps than e-commerce, including interim storage, redistribution, reconsolidation, and different modes of transport.
Tasks in First Mile Logistics
But let’s go back to the first mile. As indicated above, the processes of the first mile overlap with outbound logistics and warehouse logistics. Neither transport service providers nor the company’s internal transport logistics are directly involved in first-mile logistics processes until the goods are handed over. In other words, their job begins at the loading ramp.
The following steps in outbound logistics can also be assigned to the first mile, as they are decisive for the quality and efficiency of first mile logistics:
- Order picking
- Consolidation
- Audit
- Transport preparation, packaging, labeling
- Preparation of accompanying documents
In the next step, warehouse and transport logistics interlock. The final step is handled by transport logistics alone:
- Handover of the shipment/goods to the transport service provider or internal logistics team and loading onto a vehicle
- Transportation from the production site to the central or first interim warehouse, or from a retailer’s warehouse to a regional distribution center of a logistics service provider
Challenges of the First Mile
The first link in the logistics chain depends on the seamless interaction of three key task areas:
- Order management
- Warehouse management
- Transport management
Efficient operational processes are required to address each of these challenges, save costs and time, and ensure high delivery quality. Well-organized processes in the first mile lead to the efficient use of truck capacity and faster lead times in the middle and last mile of the supply chain.
For operations to be effective, stock and orders must first be harmonized via intelligent warehouse IT systems. Transport logistics specialists then contribute to process quality through intelligent route planning. If the middle and last mile steps can benefit from the quality of the first, customers will have a positive experience and customer satisfaction will be high.
How to Optimize the First Mile in Logistics
The key to optimizing the first mile of logistics is process automation, which allows B2B and B2C supply chains to adapt to increasing customer requirements.
Automation also means eliminating dependence on paper documents. Cloud-based transport management systems allow companies to reduce inefficiencies and costs from the very beginning, while improving transparency and profitability. Central to ensuring end-to-end transparency across the first mile and subsequent processes are interfaces between customers, warehouses, and transportation.
In addition to transparency and acceleration, reducing errors is a key feature of automated logistics processes. Errors in order compiling, labeling, or ineffective consolidation can jeopardize the quality of the entire supply chain. Thus, it is crucial for companies to implement effective management systems and integrate all stakeholders into a transparent overall process to ensure future success.
Efficiently Shaping the First Mile Together
At DHL Freight, we understand the importance of the first mile for business success. As a competent and experienced logistics service provider, we offer customized solutions for a wide range of transportation needs at every stage of the supply chain. Our efficient transport management systems ensure the success of your business.
