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Construction industry supply chains are strengthening last-mile delivery capabilities in response to increasingly demanding customers. Customers expect jobs to be done faster, more accurately and at higher quality than ever before. As a result, construction businesses are constantly looking for ways to streamline processes and add efficiency to their operations. panoszczedny

An important way to achieve this is by solving the last-mile delivery problem. As construction sites increase their reliance on just-in-time material delivery, the demand for construction materials to be delivered from the distribution center to the construction site is greater than ever.

This article looks at the unique challenges that last-mile delivery presents to the construction industry and shows how specialized third-party logistics (3PL) providers can help construction companies maximize their profits. qldbusinesspropertylawyers

Increased Material Cost

Construction companies must do everything they can to keep their projects within budget. To help reduce costs, some project managers choose to send team members to warehouses or distribution centers to pick up materials. While this method itself is not a direct cost, its major disadvantage is that it removes skilled workers from the job site by turning them into ”couriers” – a suboptimal use of skills. money6x

How a 3PL Can Help: Specialized third-party logistics companies are skilled at handling a wide range of order sizes and material types, adding efficiency to last-mile delivery that can result in cost savings.

Slow Service Causing Construction Delay

In addition to the generally high price tag associated with transporting construction materials during the final leg of their journey, there is also the constant threat that the project may be delayed while construction supplies wait for delivery. Statistics show that the time spent on mega construction projects
It shows that up to 63% is spent on activities outside of construction, and waiting for materials to reach their final destination is one of the key drivers behind this inefficiency. Clearly, this downtime is a major threat to reducing company profits. Some of the costs associated with construction delays include:

Dissatisfied customers who may want a refund for the time they spent waiting.

Inability to start subsequent projects.

Construction blockers that may require contractors to reschedule at short notice, possibly at a high payout rate.

Paying workers to wait instead of paying them for their skilled workmanship.

How a 3PL Can Help: A specialized 3PL companies integrate their software to adapt to the changing needs of the construction site, providing streamlined, on-demand delivery of construction materials to ensure projects are never left waiting.

Faulty and Missing Deliveries

Even when there are no major problems along the supply chain, last-mile delivery can be slow and costly. However, these challenges are compounded when an actual problem arises that causes the delivery to arrive late, in the wrong place, in the wrong quantity, or not at all.

Some critical last-mile logistics issues that can disrupt the entire delivery include:

Not having a transport fleet that can deliver the right quantities.

Using Google Maps or other general navigation apps that cannot find the address of new construction sites.

Shipments are left in the wrong place on a construction site and communication breakdowns leave project managers unaware that their materials are sitting on site for long periods of time and are not being used.

Working with inexperienced drivers who do not have the necessary permits to pass into safe construction areas.

How a 3PL Can Help: Modern 3PL firms use automated dispatch technology to connect with project managers and optimize delivery times and routes for hard-to-reach areas of construction sites.

Trouble Tracking Posts

Even for delivery services with in-app tracking systems, it can be annoying to see a “Ready for Delivery” status that persists indefinitely after you place the order. This can cause project managers to believe delivery is closer than it actually is and move between daily priorities in anticipation of receiving materials that are actually hours away.

How a 3PL Can Help: By providing an honest estimate of last-mile delivery time and providing automatic app-based updates along the way. 3PL can help construction businesses strictly follow construction schedules.