The last mile delivery refers to the final step in the delivery process where goods are transported from the nearest hub or distribution center to the end consumer or business location. This stage of delivery is crucial as it directly impacts the customer experience and can be the difference between a satisfied customer and one who is unhappy with their purchase. In Toronto, the state of last-mile deliveries is undergoing significant changes due to a variety of factors, including population growth, an e-commerce boom, and changes in consumer behaviours.
Toronto's population is growing at a rapid pace.
As of 2021, the population of the Greater Toronto Area (GTA) was approximately 6.6 million people, with an expected growth rate of 3.7% by 2026. This growth in population has led to an increase in demand for last-mile delivery services. More people are shopping online, and as a result, more goods need to be delivered to homes and businesses with growing pressure for same-day delivery services rising. This growing population and changing consumer landscape has led to an increase in parcel shipping that has created congestion and delays in delivery times as major market carrier networks are stretched beyond their capacity.
COVID’s impact on Toronto’s last-mile deliveries
This surge in last-mile deliveries, highly impacted by the COVID-19 pandemic, accelerated with the rapid growth of e-commerce, with many people opting to shop online to avoid in-person shopping. According to a recent report by Canada Post, online shopping grew by 46% in 2020, with Canadians spending $30.1 billion on online purchases. This increase in online shopping has put pressure on last-mile courier and last mile delivery providers to deliver goods quickly and efficiently. Retailers are also seeking faster delivery options, with same-day and next-day last-mile logistics strategies to fulfill the need for effective transportation and delivery solutions for this growing market.
Advancements in Toronto's last-mile
Advancements in technology are transforming the last-mile delivery landscape with contactless delivery, improved delivery tracking, on-demand delivery and 24-hour delivery services becoming more relied upon than ever before. Technologies such as delivery management software, route optimization, real-time satellite tracking, and communication automation are being deployed to improve last-mile delivery efficiency. For instance, FAST4WD™ digital first last mile logistics technology is integrated with retailers’ distribution centers to instantly book shipping orders as fulfillment is completed and is automated to issue email and SMS notifications to the consumer to alert them of their scheduled order with a 2-hour ETA for last-mile delivery calibrated using advanced GPS and data feed technologies to monitor traffic and align delivery services to avoid highly congested thoroughfares. Automated alerts are sent throughout the day as milestones are reached and consumers can get a turn-by-turn view of their package as it becomes closer to the delivery time established.
Despite these advancements, there are still challenges facing last-mile deliveries in Toronto that are affecting large-volume shippers (LVS). One of the biggest challenges is a shortage of professional delivery drivers that are trained in the customer service elements from this new form of customer, the home delivery recipient. This industry-wide concern can impact the speed and quality of last-mile deliveries and is the primary concern among shippers when it comes to the customer experience as often a best-in-class fulfillment chain can receive negative reviews all because of the last-mile delivery service falling short on the customer’s list of expectations.
What about customer experience?
Customer experience is critical in e-commerce as it directly impacts a customer’s satisfaction and loyalty. A positive customer experience can lead to repeat business and positive word-of-mouth recommendations, while a negative experience can result in lost sales and damage to a company’s reputation. In e-commerce, the customer experience encompasses everything from website design and ease of navigation to last-mile delivery times and post-purchase support. As online shopping continues to grow in popularity, businesses that prioritize the customer experience will be more likely to succeed and stand out in a crowded marketplace. By understanding and meeting the needs and expectations of their customers, e-commerce companies can build long-term relationships and achieve sustainable growth.
FAST4WD's last-mile delivery solution for Toronto
To address these challenges from the last-mile delivery perspective, FAST4WD™ has redesigned its last-mile service offered to include the FAST4WD White Glove Attitude Training.
This foundational element is designed to bring the retailer’s sales floor experience to the shopper’s front door where delivery speed and accuracy are mixed with accommodating and sincere customer interactions with professional last-mile delivery drivers instead of sales professionals. Gone are the days when last-mile delivery drivers would not assist receivers with mobility concerns or spend a few extra moments engaged in customer-facing conversation and so are the days of not knowing when to expect delivery and being anchored at home in anticipation.
FAST4WD™ White Glove Attitude provides leading-edge consumer-focused technology that is automated and interactive. Capable of accommodating those last-minute address corrections immediately, live updates on 2-hour delivery windows to ensure consumers are free to live their lives while eagerly awaiting their parcel arrival.
As the state of last-mile and home delivery services in Toronto is undergoing significant changes due to population growth, the e-commerce boom, and changes in consumer behaviors that are creating challenges throughout the industry, FAST4WD™ is introducing many initiatives to change the outcome of these challenges. As our city continues to grow and evolve, FAST4WD™ Same-Day last-mile delivery services will adapt and innovate to meet the needs of today’s customers and their consumers to remain the 5-Star Same-Day last-mile logistics service Southern Ontario has benefited from since 2020.
