Why First-Mile Shipping is Important

There are several steps involved in getting goods from manufacturers to customers. First mile shipping, also sometimes referred to as first-mile delivery, is the first step in this process in terms of logistics. First mile shipping is the step where goods are picked up from a manufacturer and transported to a wholesaler or distribution warehouse. From there, the items are sent out to customers in what is known as last-mile shipping or last-mile delivery.

Efficiency is the Key

Although last-mile delivery often gets most of the attention when it comes to customer satisfaction, first-mile shipping plays a big part in how well a supply chain functions. If there are inefficiencies and delays in getting goods from a manufacturer to a warehouse, all kinds of problems can start to pile up.

As these backups push other orders back, the entire supply chain is affected, and this can cascade into monumental headaches. As was seen during the Covid-19 pandemic, small problems in supply chain efficiency ended up becoming months-long backups that caused serious challenges for logistics professionals and virtually everyone in each supply chain around the world.

Additionally, large warehouses often function on tight deadlines, and because space is limited in these environments, distribution managers need to have an accurate count of what’s what and where at all times. A lack of efficiency in getting items to a warehouse can cause direct delays and indirect delays in getting items to customers.

Having Enough Inventory

Another reason first-mile shipping is so important is that it ensures that enough inventory exists to fulfill orders. If a customer places an order for an item through a website and completes the transaction, they expect to be able to receive the item they paid for.

If the first-mile shipping component of the process isn’t functioning as it should, there can be shortages at the distributor level. This may mean that customers aren’t able to receive their items on time or at all. In the end, this means unhappy customers and distribution partners who may consider looking for other shipping companies.

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