What ‘last mile’ delivery means and why it matters for an organization’s bottom line

CXT Software is a software development company that specializes in ‘last mile’ delivery solutions. The ‘last mile’ issue, which is unique to the delivery industry,  is the most complicated and expensive area of the logistical supply chain. After packages are shipped in cargo ships or on freight trains to large central warehouses, they are then sorted and sent out for delivery. Even though this last step may only cover a short distance, due to the diversity of routes and package orders, many errors can occur here. Some studies point to the ‘last mile’ stage of delivery to be one of the greatest areas for improved innovation and efficiency. Through our technologies and recognition of this issue, CXT Software is designed to automate this stage, minimize human error, and streamline the delivery process to better connect retailers to their consumers.

Through CXT Software, drivers are connected to dispatchers through a centralized app. Previously, communication was made through phone calls, which has been proven to be time-consuming and ineffective. With our app, drivers are in constant communication with dispatchers and other drivers at all times. This way, messages are more quickly conveyed helping to eliminate miscommunication that leads to human errors. Providing drivers with a single app they can use for all their shipments is not only faster and more effective, but it is also safer. Because our product suite specializes in distribution, we proactively take care of many of the decisions that drivers face, so the only thing the driver needs to focus on is the delivery of the package. 

Capgemini Research Institute’s report ‘The Last Mile Delivery Challenge’ notes that the demand for fast delivery is desired by consumers, but they are not yet ready to shoulder the full costs that come with it. Instead, the costs are shifted to the retailer, which as a result, lowers their profit margin. Statistically, retailers should actually be completing more deliveries than they are currently making; however, due to the normalized delivery system, the cost begins to outweigh the benefits after a certain amount of orders. In the long term, there has not, yet, been an effective and sustainable enough system to be very profitable on a large scale. Online sales have not yet been competitive with in-store sales. The report explained that CEOs prefer in-store purchases to online sales because they are found to be more profitable. This presented the untapped potential to innovate the logistics to make fast shipping cost-effective as well, which our team fully acknowledged and accounted for when creating our driver app.

CXT Software automates the delivery network by replacing the traditional method of listing delivery on a backroom chalkboard and completing all deliveries via phone calls to delivery drivers with a centralized, digitized, and comprehensive phone application created to combat the ‘last mile delivery’ issue. Our Software, which can be installed on nearly any smartphone, harbors all of the features needed to complete orders efficiently: navigation systems, centralized communication, tracking information for every delivery in real-time that can be accessed by managers, drivers, and consumers. Here at CXT Software, we are committed to innovation, improvement, and finding solutions.