For a third-party logistics provider, the last mile is one of the most visible parts of the fulfilment process.
A 3PL may manage inventory, warehousing, picking, packing and dispatch successfully, but from the customer’s perspective, the delivery experience often defines the final impression of the order.
That makes choosing the right last-mile delivery partner particularly important.
Whether you’re reviewing an existing carrier network or adding another delivery provider, here are some of the key factors Australian 3PLs should consider.
What Is Last-Mile Delivery?
Last-mile delivery is the final stage of the logistics journey, where a parcel moves from a warehouse, depot or local distribution point to the recipient.
For a 3PL, this can involve handing hundreds or thousands of parcels to delivery providers each day.
The last-mile provider then becomes responsible for an important part of the customer experience, including delivery progress, tracking, recipient communication and proof of delivery.
Why Last-Mile Delivery Matters for 3PLs
A 3PL doesn’t just need to move parcels.
It needs to provide a reliable fulfilment service to its clients.
When a delivery is delayed, unsuccessfully attempted or difficult to track, the recipient will often contact the retailer. The retailer may then contact the 3PL.
That means delivery problems can create additional work across several organisations.
A good last-mile operation should therefore help a 3PL achieve three things:
- deliver parcels reliably
- provide visibility throughout the delivery journey
- make delivery exceptions easier to understand and manage
1. Warehouse Collection
For a 3PL, the delivery process starts at the warehouse.
A last-mile provider should be able to establish a collection process that fits the warehouse’s normal fulfilment operation.
Consider factors such as:
- collection times
- daily parcel volumes
- vehicle requirements
- loading procedures
- order cut-off times
- multiple warehouse locations
- peak-period capacity
For regular parcel volumes, scheduled collections can be considerably more practical than arranging individual courier bookings.
2. Delivery Coverage
Coverage should be assessed against the actual distribution of your clients’ customers.
A provider doesn’t necessarily need to deliver everywhere in Australia to add value to a 3PL’s carrier network.
For example, one carrier might handle nationwide and regional deliveries while another handles eligible metropolitan deliveries.
This allows a 3PL to select delivery services according to the requirements of individual shipments rather than forcing every parcel through the same network.
3. Scalability and Delivery Capacity
3PL parcel volumes can change quickly.
A new client, promotional campaign, product launch, Black Friday or Christmas period can significantly increase the number of parcels leaving a warehouse.
When evaluating a last-mile partner, consider how the provider manages:
- normal daily volumes
- sudden increases in demand
- seasonal peaks
- new client onboarding
- additional warehouse locations
Capacity planning should be part of the relationship between the 3PL and delivery provider rather than something considered only when volumes increase.
4. Tracking Visibility
Once a parcel leaves the warehouse, both the 3PL and retailer need visibility into what happens next.
Useful tracking should make it easy to understand the current delivery status and identify exceptions.
For recipients, tracking should answer two simple questions:
Where is my delivery?
and
What happens next?
Better visibility can also help customer-service teams investigate delivery enquiries without repeatedly contacting the carrier for updates.
5. Customer Notifications
The last-mile provider may communicate directly with the retailer’s customer during delivery.
That makes recipient communication an important part of the overall ecommerce experience.
Depending on the delivery service, notifications may include:
- tracking information
- delivery progress updates
- estimated delivery information
- unsuccessful delivery notifications
- delivery completion notifications
The objective is to keep customers informed throughout the delivery journey and reduce unnecessary uncertainty.
6. Proof of Delivery
Proof of delivery is important for both operational visibility and customer support.
Depending on the delivery service, digital proof of delivery may include information such as:
- delivery status
- delivery time
- photographs
- signatures
- other delivery information
For a 3PL handling deliveries on behalf of multiple retailers, having this information readily available can make delivery enquiries easier to investigate.
7. Managing Unsuccessful Deliveries
Successful deliveries are only part of the process.
3PLs should also understand what happens when a parcel cannot be delivered.
Before choosing a last-mile partner, consider:
- how unsuccessful deliveries are recorded
- what information is provided to the recipient
- whether redelivery is available
- how address issues are handled
- what happens to parcels requiring return
- how delivery investigations are managed
A clearly defined exception process can be just as important as the normal delivery process.
8. Technology and Integrations
Manually booking individual deliveries is rarely practical for a high-volume 3PL.
The delivery provider should be able to fit into the 3PL’s existing technology and operational workflow.
Depending on the business, this may involve connections with:
- warehouse management systems
- transport management systems
- order management systems
- ecommerce platforms
- shipping platforms
- APIs
The objective is to transfer delivery information efficiently while reducing unnecessary manual work.
9. Reporting and Delivery Data
Delivery data can help a 3PL understand how its carrier network is performing.
Useful information may include:
- delivery completion
- delivery exceptions
- unsuccessful deliveries
- delivery times
- proof of delivery
- historical delivery information
The specific reporting requirements will vary between businesses, but delivery information should be accessible enough to support operational and customer-service teams.
10. Total Delivery Cost
Carrier comparisons shouldn’t be based solely on the headline parcel rate.
The total cost of delivery can also be affected by:
- collection arrangements
- fuel or other applicable levies
- redelivery charges
- unsuccessful delivery charges
- technology or account fees
- operational administration
- customer-service workload
- return processes
For a 3PL processing significant parcel volumes, relatively small differences in delivery operations can have a meaningful impact at scale.
Should a 3PL Use Multiple Last-Mile Carriers?
In many cases, yes.
Different carriers have different strengths, service areas and delivery models.
A multi-carrier approach allows a 3PL to allocate parcels according to factors such as:
- destination
- required delivery speed
- parcel characteristics
- service availability
- client requirements
- delivery cost
One provider might handle national deliveries while another provides next-day delivery for eligible metropolitan orders.
The objective isn’t necessarily to find one carrier that does everything. It is to build a delivery network that matches the requirements of the 3PL and its clients.
Where GoEXPRESS Fits
GoEXPRESS is GoPeople’s next-day delivery service for businesses with regular parcel volumes.
The service currently operates in Sydney, Melbourne and Brisbane.
For participating 3PL customers, parcels can be collected from the warehouse, processed through the GoEXPRESS network and delivered through GoPeople’s last-mile operation.
This means a 3PL can potentially use GoEXPRESS as part of a broader carrier strategy rather than replacing every existing delivery provider.
Other GoPeople Delivery Options
GoPeople also provides other delivery models that may suit different 3PL requirements.
GoBUNDLE — Multi-Drop Delivery
Designed for businesses making multiple deliveries from a pickup location using dedicated delivery runs and route optimisation.
GoSAMEDAY — Same-Day Delivery
For eligible business deliveries that need to reach recipients within the same day.
GoVIP — On-Demand Courier
For urgent and time-sensitive deliveries requiring an on-demand courier.
Frequently Asked Questions
What is last-mile delivery for a 3PL?
Last-mile delivery is the final stage of fulfilment, where parcels are transported from a warehouse, depot or local distribution point to recipients. A 3PL may work with one or multiple last-mile providers to complete this part of the delivery journey.
Can a 3PL use multiple delivery providers?
Yes. A 3PL can use multiple carriers and allocate parcels according to destination, service availability, delivery speed, client requirements and other operational factors.
What should a 3PL look for in a last-mile provider?
Important considerations include warehouse collection, coverage, capacity, tracking, customer notifications, proof of delivery, exception management, technology integration, reporting and total delivery cost.
Can GoPeople collect directly from a 3PL warehouse?
GoEXPRESS is designed around collections from participating customer warehouses. Collection arrangements depend on warehouse location, parcel volumes and service requirements.
Where is GoEXPRESS available?
GoEXPRESS currently operates in Sydney, Melbourne and Brisbane.
Is GoEXPRESS only for 3PLs?
No. GoEXPRESS can also support ecommerce retailers and other businesses with regular parcel delivery requirements.
Looking for a Last-Mile Delivery Partner?
If your 3PL operates warehouses in Sydney, Melbourne or Brisbane, GoPeople can discuss your parcel volumes, warehouse operations and delivery requirements to determine whether GoEXPRESS can complement your existing carrier network.