Logistics is a science that’s more relevant and complex than ever in our modern world. And despite its long history, our understanding of it continues to evolve. That may be one reason why the final piece of the logistics puzzle, the “last-mile problem”, is among the most important unsolved mysteries in the industry.
Where there’s a problem, there’s also opportunity. Cargo van rental for businesses is even easier now than ever before thanks to powerful platforms, like Fluid Truck, that connect delivery services with the vehicles they need to solve the last-mile problem and build a successful e-commerce strategy.
What is the “Last-Mile Problem”?
Final mile delivery is perhaps the most crucial stage in the supply chain pipeline. It refers to the last steps involved in connecting a customer with their order.
The “problem” comes in when working on the scale of a business, even one of modest size. Depending on factors upstream in the supply chain, last mile delivery can account between 28% and 58% of the total transport costs–this is a significant cost for most businesses. Maybe the last mile wouldn’t be such a pain point if a business just had to take a single product off a shelf and send it to the same customer every day. That doesn’t sound like a very profitable business, nor does it account for the fact that supplies need to be sourced from multiple locations, connections need to be made over a journey of hundreds or thousands of miles, and this all has to be multiplied over millions of orders. Let’s not forget that the “last-mile” is often much further than a single mile; rural residents need deliveries too!
Thankfully, completing the final mile deliveries doesn’t have to be complicated. At the end of the day, It all still comes down to moving from point A to point B, a process that just needs efficiency to enable success. If you’re in the business of delivery, how can you close the last-mile gap in the most efficient way possible?
Fleet Rental for Last-Mile Delivery
The best methods to solve the last mile problem and grow your delivery business into a logistics powerhouse are changing constantly. That’s why the most direct route to success requires flexibility.
Unfortunately, vehicle ownership itself is a pretty inefficient solution for last-mile delivery providers.
According to Fleet Financials, the average total cost of ownership for a light-duty vehicle ranges from $5,000 to $8,000 per vehicle, per year. These costs only rise with larger vehicles like box trucks that are an essential tool in any delivery service’s arsenal. To reduce overall costs, the most obvious solution would be to reduce the number of vehicles in the fleet. However, that isn’t going to help anyone looking to grow their business and meet demand.
What if your delivery business could keep the dead weight of fleet vehicle ownership off its books, and instead only pay for the exact number and type of truck or cargo van it needs at the moment?
Sounds like a bit of a logistical headache, but this is no longer the case. Cargo van rental platforms for business make it possible to rent a scalable fleet of delivery vans, box trucks and more at a moment’s notice. This way, there’s no need to pay for assets that aren’t adding value during off-peak periods. It also eliminates the many hidden costs of ownership, like maintenance, insurance, storage and more.
Relying on a fleet rental platform, rather than a brick-and-mortar rental agency, is another key to making this strategy work. The average truck or van rental business will provide the wheels you’re looking for, but little else. There are rarely other services (and time-savings) built in, unless you’re able to pay extra. Long wait times and inflexible hours add up to a pretty poor experience that doesn’t get your business where it needs to be.
Your customers want their orders delivered on time and within their budget, naturally the same combination of cost-savings and convenience is needed when sourcing delivery vehicles. With Fluid Truck, you can schedule a box truck rental at any time of day and extend your reservation without worrying about strict return policies, the savings will quickly become clear.
This is all made possible by leveraging a technology-forward rental service to create an intuitive fleet rental experience optimized for businesses. Fluid Truck is open 24/7 for cargo van rentals and more to get you exactly where you need to go whenever you need to get there.