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Gartner for Supply Chain Leaders3 Logistics TransformationsNeeded for Better Last-MileDelivery B2C Last-Mile Is ConstantlyEvolving Growth of Retail Customer Expectations Over thePast Decade Last-mile innovations designed for the retail customer are frequent and often make the— either in response to customer expectations or for competitive advantage. Customer Expectations AreCatching Up in B2B Growth of Business Customer Expectations Over thePast Decade Customer expectations of B2B companies spiked during the pandemic.For some, this wasbecause of the critical nature of B2B products, but for others, it was because of the suddenmerging of their personal and business shopping habits due to many working at home. Last-Mile ExpectationsIncreased Most in B2B Elevated Customer Expectations Percentage of Respondents Selecting “Agree” or “Completely Agree” B2B Last-Mile Not Deliveringon New Expectations Indicators of Failing Performance Declining Service 38% of organizations have seen theiron-time delivery rateworsenover the past two years. Rising Costs 69% of organizations have seen theirlast-mile shipping cost permile worsenover the past two years. Frustrated Customers 62% of organizations have seen theircustomer complaint raterelated to last-mile flatline or worsenover the past two years.* Despite increasing expectations and promises, B2B organizations are struggling to maintain serviceat higher prices —and customers are noticing. The Goal: Meet Customers’Last-Mile Expectations WithConstraints Current and Goal State for Last-Mile Organizations B2B Logistics is struggling to meet growing customerexpectations for last-mile delivery. B2B Logistics consistently meets customers’ last-mileexpectations despite organizational constraints (costs,technology limitations, etc.). The Path Forward:Embrace the Value Potentialof Last-Mile Delivery Current and Recommended Approach to Last-MileDelivery Current Approach Thinking last-mile delivery is the end of a (long or short)customer-business relationship, your goal is to simply getpeople their stuff. Recommended Approach Understanding customers expect excellence across manyaspects of last mile (not just speed), you treat delivery as akey driver of customer satisfaction, recommendation andrepurchase decisions. Last-Mile Is More ImportantThan You Might Think Maximum Impact of B2B Last-Mile and ProductFactors on Customer and Business Outcomes Speed Isn’t the Only Last-MileMetric to Focus On Percentage of High Satisfaction for Last-Mile Factors Logistics’ Last-MileInvestments Are Misplaced Last-Mile Investments Over the Past 24 Months Percentage of Organization PlacingEach Activity in Their Top 3 3 Logistics TransformationsNeeded for Better Last-MileDelivery Reshape mindsets:Last mile is no longer anafterthought — it is a critical step in maintaininga good customer relationship and a driver offuture revenue. Revise your last-mile investments:Organizationsmust invest more in customer understandinginitiatives and potentially reorganize their operatingstructure around those initiatives. Retrain 3PLs:3PLs are essential to last-mileoperations, but we must make sure our primaryfocus (the customer) is their primary focus. Connect With Us Get actionable, objective insight to deliver on your mission-criticalpriorities. Our expert guidance and tools enable faster, smarterdecisions and stronger performance. Contact us to become a client: U.S.:1 855 811 7593 International:+44 (0) 3330 607 044 Become a Client Learn more about Gartner for Supply Chain Leadersgartner.com/en/supply-chain Stay connected to the latest insights Sign up for our newsletter