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Supply chains have always faced disruptions. But today's geopolitical conflicts, climate change, and economic shifts make them not only more frequent, but also severe.
There’s a lot at stake. Shoppers have ever-increasing expectations, and any last-mile disruption compromises a key piece of customer loyalty: the delivery experience.
Forward-thinking retailers build resilient last-mile networks to handle these disruptions. They offer alternative options, so that teams can maintain smooth operations without scrambling to make last-minute decisions. By preparing for potential delivery issues, retailers can mitigate operational disruptions and maintain seamless delivery experiences that keep customers coming back.
Retail leaders prepare for instability and the unknown. They withstand market volatility and mitigate last-mile interruptions by diversifying their carrier networks.
If one carrier faces a disruption, having multiple carriers available ensures deliveries can still move forward, protecting delivery promises and maintaining positive customer experiences.
Take Walmart. By using its internal Spark Driver network alongside partners like FedEx and other third-party logistics providers, the retailer increases its ability to meet delivery deadlines.
Diverse carrier networks allow retailers to be more adaptable. But without proper oversight, multi-carrier management can introduce new challenges, too. A recent study by Bringg found a pattern of strong reliance by retailers on 3PLs. Most work with an average of three to four logistics providers, which deliver more than half of their total orders.
However, the study also uncovered retailers’ biggest challenges when working with multiple 3PLs: maintaining consistent customer experiences, pricing negotiations, and the ability to manage multiple integrations. Clearly, there’s a balance between having the right amount of carrier capacity to meet demand and ensuring internal operations are manageable. When done right, this strategy can prevent disruptions without sacrificing control or visibility.
Route optimization helps retailers stay competitive in turbulent markets. By drawing on real-time data on delivery volumes, regional conditions, carrier status, and shifting priorities, retailers design efficient delivery routes regardless of external disruptions. This data-driven approach ensures reliable schedule deliveries, while minimizing delays and maximizing resources.
Real-time data offers a new level of visibility that also allows businesses to anticipate future market conditions, ensuring accurate timing predictions and more precise operational planning.
Artificial intelligence-driven tools take route optimization a step further, automating complex processes and turning data into valuable insights with minimal effort from retailers' teams. For example, Tesco has utilized AI to enhance its delivery operations, saving 11.2 million miles in transport and reducing fuel costs by 5%. Similarly, FedEx’s adoption of AI has improved the accuracy of estimated delivery times, even amid disruptions.
In addition to diversifying carrier networks and investing in route optimization tools, retailers should consider other strategies to mitigate the impact of carrier network volatility.
Omnichannel fulfillment reduces reliance on external carriers while enhancing customer experience. Offering options like buy online, pick up in-store (BOPIS), curbside pickup, and ship-from-store provides customers with flexible ways to receive orders. This helps retailers minimize the impact of delays by using local stores as fulfillment centers for faster deliveries, and cutting down dependence on long-haul carriers.
Inventory management plays a key role in mitigating disruptions. Maintaining buffer stock in key regions ensures product availability during delays, while AI-driven demand forecasting helps to dynamically replenish inventory based on real-time demand.
Enhancing supply chain visibility is also essential. Real-time tracking allows retailers to monitor inventory, carrier performance, and regional conditions, leading to quicker and more informed decisions during disruptions. Collaborative platforms improve visibility into carrier networks, helping retailers respond more effectively.
In an unstable market, how retailers handle last-mile disruptions can make or break their business. By balancing carrier diversification and route optimization with strategies such as omnichannel fulfillment, dynamic inventory management, and enhanced visibility, retailers can streamline operations, reduce costs, and navigate delivery volatility. In the process, they can meet customer expectations while minimizing operational risks, even during the most challenging times.
