When we talk about visibility in logistics, the last mile usually takes up most of the oxygen in the room. That’s not without reason—the last mile is the most expensive leg of the fulfillment journey, in many ways it's the most difficult to optimize, and it requires careful tracking to keep things running smoothly.
But what happens when you turn around and leverage that same level of visibility in the middle mile? Boosting logistics in this leg of the journey can go a long way towards improving supply chain operations—including the last mile. Fundamentally, the first, middle, and last mile are all connected parts of a single whole, and gaining visibility into each segment of it helps bolster those segments and improve connectivity and coordination.
In this post, we’ll get into the exact logistics of how that happens. We’ll dig into what the middle mile is and how you can gain added visibility into it.
Before we get too far into the weeds, let’s define our terms. The middle mile is generally considered to cover the transfer from a larger regional warehouse (where goods are stored after your first mile transportation process has gotten them from their place of manufacture or production) to local distribution centers and hubs from which last mile deliveries can be carried out.
It’s easy to see how the middle mile can sit awkwardly between dependencies. You can’t route a middle mile truckload until the first mile has been successfully completed, and you can’t start on the last mile until the middle mile is accounted for.
When this process is a black box—in other words, when you can’t easily see what’s happening with your middle mile logistics—you can’t schedule orders for final mile delivery with any real confidence. This slows down your inventory turnover and makes your planning and execution less efficient.
Unfortunately, a complete lack of visibility is often the default for the middle mile. More specifically, even if there is effective tracking of middle mile deliveries, that data often doesn’t make its way to the other functional areas, meaning the middle mile too often exists in a silo.
The best way to administer the first, middle, and last miles is to treat them as a single, connected process with multiple different phases—but a lack of middle mile visibility makes this impossible to achieve.
It’s not difficult to see how inefficiency and poor visibility in the middle mile can increase costs. Like we mentioned above, slower middle mile planning and execution results in slower inventory turnover, meaning you have to pay for more square feet of warehouse than necessary.
By the same token, if the transfer from the middle mile to last mile suffers from a lack of visibility, you won’t be able to move inventory as quickly or make the most efficient use of your resources. The result is that efficiency is hard to come by and logistics costs add up across the board.
When it comes to customer experience, the adverse effects might be slightly less obvious. But if you lack visibility into the middle mile, you increase your risk of a couple of different scenarios that directly impact the customer:
In both of these cases, your customers wind up anxious, or annoyed, or both. When it comes time to make another purchase, they’ll likely remember that anxiety and annoyance and strongly consider placing an order with a competitor.
Luckily, true middle mile visibility can stave off both of those scenarios with ease. Not only that, but it can help you avoid the costly and inefficient scenarios that we sketched out above. Simply put, it enables you to treat the entire fulfillment process as a continuous whole that can be optimized for cost and performance.
When you have middle mile logistics visibility, you can coordinate between the last mile and the middle mile more effectively, stave off delays more easily, and generally reduce logistics costs. But how do you achieve that level of visibility and the connectivity that comes with it?
Here are a few best practices:
Getting logistics processes right from the first mile to the last mile is no mean feat—which is why visibility is absolutely paramount. The more thoroughly you can build cross-functional visibility into your logistics, the more effectively you can streamline your first, middle, and last mile logistics into one connected, efficient process.
Putting all of these pieces together requires the right processes, which have to be bolstered by the right technology. If you’re not sure your current technology stack is up to task, grab some time with one of our experts today to walk through what achieving real logistics visibility could look like.