How utilizing your vehicle capacity reduces last mile delivery costs

3 min readOct 18, 2021

Last mile delivery is the final leg of logistics management that includes delivering goods from the last hub/warehouse to the customers’ doorsteps. For managing last-mile delivery operations efficiently, it is important to pay attention to all its aspects, including-

  • Picking up goods on-time
  • Loading and unloading them carefully

• Choosing the right delivery vehicle

• Finding a suitable driver

• Updating with the live status of the order

• Delivering goods on time

Among all these aspects, selecting the right delivery vehicle and using its space completely plays a pivotal role in minimizing the last mile delivery costs. Let’s discuss it in detail. Every vehicle has a certain capacity for stuffing the goods. It should be used in a manner to ensure that the maximum number of goods can be placed in it. Another main consideration while stuffing the goods is ensuring its damage-free transportation and delivery. Now, utilizing your vehicle capacity can make a business get the following benefits-

Reduces requirement for hiring more vehicles from the market

Utilizing your own delivery vehicles’ capacity completely would help you serve more customers or deliver more orders without needing more vehicles from the market. It would also help to meet delivery demands during peak seasons or when a business receives a large volume of orders. The cost of hiring more vehicles from the market contributes majorly to the total last mile delivery cost.

last mile delivery software

Reduces fuel costs

Fuel costs also contribute to the last-mile delivery costs. More number of vehicles on the road means high fuel costs. Vehicle capacity utilization makes sure a greater number of deliveries can be done using less vehicles.

Low vehicle maintenance costs

Vehicle maintenance costs are also added to the overall delivery costs. Delivering more orders using a smaller number of vehicles would also contribute to reducing vehicle maintenance costs.

Another major benefit of using a vehicle’s capacity to the fullest is reduced carbon emission, which is one of the topmost priorities of businesses these days. Even the government is running such initiatives and making rules & regulations for the businesses to minimize carbon footprints.

Now, measuring the capacity of each vehicle from your fleet and ensuring it fulfils completely before each trip is a tedious task. Doing this manually can take a significant amount of time and a huge workforce without even guaranteeing a precise output. To automate this process and save your time, effort, and cost, it is good to opt-in for fleet management software or last-mile delivery software. The former will help you manage complete operations related to the fleet while the latter would automate all the last mile processes, including fleet management.

All you have to do is to get the last mile delivery management software from a trusted provider. To have an idea of the features and functionalities of the software, you can request for a demo of it. One thing that needs great attention is to make sure the last mile logistics software is customizable. Choose the best to improve your business profitability, increase customer satisfaction, reduce delivery costs, and build a strong brand reputation.