Reducing Last-Mile Refrigerated Delivery Costs: 6 Actionable Strategies for 2023

Reducing Last-Mile Costs is a paramount importance. Last-mile refrigerated delivery is a critical part of the cold chain supply chain, where products such as fresh produce, dairy, and pharmaceuticals need to be delivered within a specified temperature range. This stage is not only expensive but also complex and requires specialised equipment, processes, and expertise. In this blog, we will discuss six actionable strategies that businesses can implement to reduce last-mile refrigerated delivery costs in 2023.

1. Introduction

Last-mile refrigerated delivery is a complex and costly stage of the cold chain supply chain. In addition to maintaining the temperature range, businesses also need to ensure timely and accurate delivery. In this article, we will discuss six actionable strategies that businesses can implement to reduce last-mile refrigerated delivery costs and improve customer satisfaction.

2. Implementing Real-Time Monitoring

Implementing real-time monitoring can help businesses to better manage and optimise their refrigerated deliveries. Real-time monitoring systems can track the location, temperature, and other vital parameters of the products being transported. This can help businesses to identify and rectify any issues promptly, reducing the risk of product spoilage and associated costs.

3. Optimising Delivery Routes is a key to Reducing Last-Mile Costs

Optimising delivery routes can help reduce last-mile refrigerated delivery costs by minimising the distance travelled and time spent on the road. Route optimization software can help businesses to plan the most efficient routes for their delivery drivers. This can help reduce fuel consumption and vehicle wear and tear, ultimately leading to cost savings.

4. Reducing Empty Miles

Reducing empty miles can help businesses to optimise their refrigerated delivery operations and reduce costs. Empty miles occur when delivery vehicles return to the warehouse or depot without any products. Businesses can reduce empty miles by improving route planning, using backhaul opportunities, and collaborating with other businesses.

5. Leveraging Technology and Automation Reducing Last-Mile Costs

Leveraging technology and automation can help businesses to optimise their refrigerated delivery operations and reduce costs. For example, businesses can use automated loading and unloading systems, temperature-controlled containers, and vehicle tracking systems. This can help reduce manual labour costs, improve efficiency, and ensure timely and accurate deliveries.

6. Adopting Innovative Delivery Models

Adopting innovative delivery models can help businesses to reduce last-mile refrigerated delivery costs and improve customer satisfaction. For example, businesses can offer self-service lockers, in-home delivery, or subscription-based services. These models can help reduce the cost of delivery while providing customers with more flexibility and convenience.

7. Collaborating with Other Businesses will 

Collaborating with other businesses can help businesses to reduce last-mile refrigerated delivery costs by sharing resources and optimising delivery routes. For example, businesses can collaborate with other businesses in the same area to share delivery vehicles and drivers. This can help reduce the cost of delivery while improving efficiency and sustainability.

8. Conclusion

Last-mile refrigerated delivery is a critical and costly stage of the cold chain supply chain. However, businesses can reduce their costs and improve customer satisfaction by implementing the six actionable strategies discussed in this blog. By leveraging technology and automation, optimising delivery routes, and adopting innovative delivery models, businesses can increase efficiency and reduce manual labour costs. Collaborating with other businesses and implementing real-time monitoring can also help to minimise risks and optimise resources. With these strategies, businesses can reduce last-mile refrigerated delivery costs and stay competitive in 2023 and beyond.

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