There are many cogs that make up the supply chain. Some areas that are less discussed include the first mile-sorting centre and first-mile delivery. Today, we’re going to shine a light on these incredibly important aspects of the supply chain and discuss why, and how, optimizing them both is so important for eCommerce businesses.
What is a first-mile sorting centre?
A first-mile sorting centre is a warehouse, distribution facility, or fulfillment center. It’s the place where goods arrive once they’ve been manufactured, and they’ll usually be stored there until they’re purchased by a customer.
We refer to this first leg of the journey (where new products are sent to the first-mile sorting center) as first-mile delivery, and it’s an incredibly important part of both the supply chain and the order fulfillment process.
In reality, the definition of first-mile delivery is slightly different depending on whether it’s for a retailer or an eCommerce business. In retail, it’ll usually be the journey in which goods go from the point of manufacture to the retailer’s distribution center. In eCommerce, it’s the point at which the goods travel from the seller to the warehouse or fulfillment center.
The importance of first-mile sorting and delivery
The importance of first-mile delivery cannot be overstated. As the first stage of the fulfillment process, poorly run first-mile delivery has a knock-on effect on everything that comes after it. An Inefficient first-mile delivery process or first-mile sorting centre can have far-reaching consequences to your fulfillment process, customer satisfaction, and bottom line.
If your goods aren’t shipped to your warehouse or fulfillment center effectively, you may find that you don’t have enough products to keep up with customer demand. On the other hand, overordering certain products can result in unnecessary storage and shipping costs.
First-mile vs last-mile: what’s the difference?
As mentioned above, first-mile delivery is the journey goods take from the seller or manufacturer to the warehouse. Last-mile delivery, then, is part that customers are much more familiar with; the journey of goods from the warehouse to the customer’s door.
There’s considerably less awareness and emphasis on first-mile delivery when compared to last-mile. After all, in today’s eCommerce landscape, apps, and tracking codes give customers a tonne of information about where their order is once it’s being processed and en route to them.
An unfortunate side effect of the first-mile delivery process being lesser known is that it’s generally much less efficient than the last-mile stage. A customer’s eyes are closely following an order once it’s been placed, and they’ll tend not to think about the route the product has taken before they bought.
However, for businesses who are keen to optimize each leg of their supply chain, first-mile delivery holds too much weight to be ignored. And, although customers might not necessarily know it, an inefficient first-mile can negatively impact their experience.
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Optimizing the first-mile
Once you realize the importance of first-mile delivery and your first-mile sorting center, there are a number of steps you can take to make the first-mile process for your business much more efficient.
Understand your supply chain
A good first step is to analyze your current first-mile delivery process and identify room for improvement. It’s best to look at the bigger picture, starting with the first-mile delivery and ending at the last-mile delivery stage.
Once you’ve mapped out the entire supply chain, you’ll be able to identify the biggest cracks and weaknesses, and you’ll be surprised to find how much can be alleviated by optimizing the first mile.
Track inventories
Through inventory tracking, we can ensure that our first-mile operation is making optimal use of capacity. Proper inventory tracking ensures that the right amount of goods travel to the first mile sorting center and that inventories are replenished at the right time.
Embrace technology
Use inventory and warehouse management software to automate much of the first-mile process and eliminate human error. Good technology will accumulate useful data and present it to you in a digestible format, allowing you to make informed decisions on how to improve efficiency.
Outsource
Leaving your first mile delivery and sorting in the hands of experts can often be the best option. At James and James, our first-mile sorting centre is powered by custom-built software and industry expertise, saving you time, and money, and allowing you to get on with growing your business.
First-mile sorting centre FAQs
Who operates first mile sorting centers?
Depending on the company, first mile string centers will be operated either by employees of the company or an external organization. Most modern first-mile sorting centers combine warehouse staff with warehouse technology to run a smooth operation.
Can you outsource first-mile delivery?
Absolutely; it’s very common for SMEs and even larger companies to outsource their first-mile delivery. Common carriers in the UK include DPD, Hermes, and DHL.
What are the costs associated with first-mile sorting centers?
Costs associated with first-mile sorting centers include:
- Costs of running the center (labor/ energy)
- Storage costs
- Picking and packing
- Shipping to and from the center
What kind of services do first-mile sorting centers offer?
There are many different first-mile sorting centers to choose from, each offering different levels of service. James and James Fulfillment is a first-mile sorting centre that also manages the entirety of the order fulfillment process.
James and James offer the following services to all clients:
- Goods in – We process your goods as they enter our fulfillment center, adding barcodes, weights, dimensions, photographs, and tracking information to our system. This ensures speedy and accurate fulfillment later on.
- Storage – We store your goods carefully and securely until an order is placed by a customer.
- Picking and packing – When an order comes in, we pick the item from the shelf. We then pack the order with the most suitable packaging so it doesn’t get damaged in transit.
- Shipping – We work with all the major carriers to ensure cost-effective shipping and speedy delivery.
- Returns management – If a customer wants to return an item, they’ll return it here where we’ll process it and put it back on the shelf to be sold.
- Award-winning technology – Everything is tied together and powered by our cloud-based software, ControlPort.
Want to learn more? Get in touch!
If you’re considering hiring somebody to take care of your first-mile operation, we’d love to discuss our fulfillment services with you. To get in touch, please fill out this form and we’ll be more than happy to discuss what we offer, the next steps, and more.
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