If you have been following the supply chain management industry, then you must have come across the two terms: last-mile delivery and hyperlocal delivery.
Well, both of these are the terms that business owners with supply chain requirements get curious about! While they have their similarities, it is important to understand how and why they are different.
What is Last-Mile Delivery?
Last-mile delivery is the last step of the delivery process, where the consignment leaves the transportation hub to reach the customer’s door. Most e-commerce/delivery businesses focus on making their last-mile delivery as quick & efficient as possible. Due to the huge demand in the eCommerce, food, and retail industries, last-mile delivery has become the most expensive part of delivering products to their customers.
What is Hyperlocal delivery?
Hyper-local delivery is the process, where a logistics company delivers the goods from the seller to the customer directly.
The courier agent picks it up from the seller and then delivers it to the customer’s door. The term hyperlocal delivery came into existence with the rapid increase in the demand of the eCommerce, retail, and food delivery industry.
As you can see both last mile delivery and hyper-local delivery revolve around delivering goods directly to the customer. Hence, many people confuse one term with the other. To make this clear, let’s understand the difference between last-mile & hyperlocal delivery.
What are the differences between Last-Mile & Hyper-Local Delivery?
Well, both last-mile and hyper-local delivery can be differentiated based on the following factors:
- Delivery time
- Geographical area
- Delivery Responsibility
- Package restrictions
The delivery time of last-mile delivery depends on the product availability and distance between the product manufacturing area and the closest transportation hub. Last-mile delivery is only the last step of delivering your package – there are other steps in the delivery journey which precede it. Depending on these factors, even though the last mile delivery might only take a few hours, the actual duration from the customer placing the order, to receiving it at their doorsteps might actually be much longer.
Hyperlocal delivery is fast and a typical package might take anywhere between 2-4 hours or a maximum of 5-7 hours, and the pickup and the drop addresses are in a direct delivery radius. The delivery time depends on product availability & packaging. The package is delivered faster as the geographical service area is typically smaller than those in last-mile delivery services.
Most last-mile deliveries are handled by courier companies. They are solely responsible to deliver the package to the customer. The entire process is managed and carried out by one company.
For hyperlocal delivery, there is only one transport leg between the pickup and the drop location, which is handled by the hyperlocal delivery company directly.
Last-mile deliveries have a larger geographical coverage, the transportation hubs can be as far as 40 kilometres from the delivery address. Typically, this is planned by the courier company by assigning the nearest transportation hub to the customer’s address.
The geographical coverage of the hyperlocal deliveries is limited and is typically smaller than last-mile deliveries. They take place within city limits, where the distance between pickup and drop locations reach upto 20 km (depending on the size of the city).
Last-mile deliveries generally do not have any package restrictions. Sellers charge their customers based on the mode of transportation along with the weight of the package.
Also, last-mile deliveries can deliver almost all kinds of items – from fragile items, to apparel and consumer electronics. However it is not recommended for fresh food items such as groceries, vegetables, etc. The total delivery time can often be long; hence most sellers refrain from delivering such items across long legs.
Coming to hyper-local delivery, there is a typically a weight limitation of about 15-30 kgs while delivering the products. Most hyperlocal deliveries are done on a motorbike or a three-wheeler, therefore there are limitations on the weight of the package. Since hyperlocal deliveries happen within a small geographical area, the delivery is quicker. Making it ideal for delivering items such as groceries, fresh fruits/vegetables, medicines, food, etc.
Both last-mile delivery and hyper-local delivery models are the end leg of the supply chain. However, they do differ in terms of delivery area, time, and package restrictions.
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