Overcome Last-Mile Delivery Challenges in the Building and Construction Industry

Key Takeaways:

• Last-mile delivery is pivotal in the construction industry, where delays translate directly into escalated costs and extended project timelines.
• Construction materials often require special handling due to their size, weight, or fragility, necessitating sophisticated logistics solutions.
• Tools like RyderView™ enhance logistical efficiency by offering real-time updates, automated notifications, and efficient communication channels, ensuring materials reach sites promptly and in optimal condition.
• Efficient last-mile delivery strategies not only cut costs by reducing waste and optimizing scheduling but also address environmental concerns through route optimization and the use of eco-friendly vehicles.

The building and construction industry relies on timely and accurate deliveries to keep projects on schedule and within budget. The complexities of last-mile delivery—the final step of the delivery process from a distribution center or facility to the final destination—pose significant challenges, especially in an industry characterized by large, heavy, and often fragile materials.

Addressing these challenges is critical—even minor disruptions can lead to substantial delays and increased costs.

The significance of efficient last-mile delivery in construction cannot be overstated. Construction projects operate on strict timelines, and any delay in the arrival of necessary materials can halt operations, extending deadlines and increasing labor costs. Additionally, materials must arrive undamaged.

The cost of replacement or repair and the time lost in handling these issues can severely impact a project’s profitability.

Last-mile delivery can cut costs and contribute to efficiency, allowing site managers and contractors to order supplies on an as-needed basis. Since these deliveries account for almost half of the total delivery costs, the savings can be significant.

However, about 75% of customers say they’ve experienced delivery issues. This poses a significant challenge for last-mile logistics.

Understanding the unique challenges and industry-specific requirements is the first step toward refining the last-mile delivery process in construction logistics.

The Unique Challenges of Last-Mile Delivery in Construction

Last-mile delivery is nothing new. As freightwaves.com points out, dairy products were delivered to doorsteps in the early 1900s.

Just as glass milk bottles required special handling, so does building and construction materials.

Urban areas, in particular, present last-mile delivery challenges in the form of:

• Limited space to maneuver large vehicles
• Traffic congestion
• Restricted access
• Tight delivery windows
• Pedestrians and other non-road traffic
• Damage potential

Even in non-urban areas, supply chain disruptions, transportation delays, and material shortages create issues that often can’t be helped.

However, there are mitigating and proactive actions that can smooth the process. Let’s look at how Ryder is addressing some of these common, controllable challenges.

#1: Damage and Risk Handling

Oversized, heavy items, such as lumber and drywall, require specialized handling equipment, and fragile materials like glass and tiles are susceptible to damage during transport.

Then, there are the delicate finishes often involved in construction and building projects, including paintwork, ceiling tiles, electrical components, plumbing fixtures, and electrical appliances.

All of these can be warped, scratched, or dented if not handled properly during transport, including last-mile delivery.

Ryder enhances the safety and integrity of materials through thorough inspections at hub locations before dispatch and equipping delivery teams with appropriate tools, such as liftgates, for safer unloading.

Specific protocols are adjusted per material type to ensure they arrive at construction sites in pristine condition. On top of that, Ryder thoroughly inspects hub locations before dispatching.

#2: Navigating Complex Delivery Locations

Construction sites can be chaotic, with uneven terrain and restricted access points. However, precise scheduling is needed to align deliveries with project timelines and avoid expensive downtime.

Let’s look at one sticky challenge. When Ryder delivered large appliances to 19 builder sites in Spanaway, WA, it included navigating high-rise buildings and multi-family complexes. The obstacles were many, including unclear site markers, access to freight elevators, and coordinating with multiple stakeholders.

Ryder easily met this challenge through constant communication, coordinating closely with site superintendents through kickoff meetings to set delivery expectations.

Regular communication was maintained to swiftly adapt to any on-site changes, supported by a role-specific "Builder Specialist" to streamline logistics operations with onsite demands.

#3: Installation and Specialized Handling Needs

Last-mile delivery to a construction site is nothing like delivering consumer packages. Unloading at construction sites may require forklifts, cranes, or skilled labor. Some products require on-site assembly or placement at specific locations.

Ryder also meets this challenge with:

• Liftgate-equipped trucks for efficient unloading.
• Capabilities for specialized installations such as appliance hookups and TV mounting.
• Support for moving materials within job sites.

Going above and beyond just delivery, Ryder provides skilled technicians for on-site assembly and installation needs.

For handling heavy materials, while Ryder does not operate forklifts or Moffett trailers, we coordinate with partners to prevent any delays.

#4: Enhancing Customer Coordination and Communication

Contractors and project managers need real-time scheduling updates, making seamless communication between multiple stakeholders—site supervisors, suppliers, and others—crucial.

RyderView™, the ultimate technology tool platform, allows for self-scheduled deliveries and provides notifications, order tracking, and 100% real-time visibility, enabling:

• Carrier tracking
• Exception management
• Automated notifications
• Proof of delivery
• A 2-hour delivery window and 30-minute pre-arrival updates

This innovative tool is crucial in enhancing last-mile logistics, ensuring all parties are informed about delivery status. All of this is accompanied by our industry-leading 98% on-time performance for scheduled deliveries.

Per Construction Executive, material handling takes up to 40% of field crew time on a job site—a significant cause of unproductive time. With RyderView™, you’ll improve project efficiency and reduce delays, because you’ll have a transparent view of the schedule.

Make your construction company brand stand out. Superior last-mile logistics are a game-changer. Final-mile logistics in construction can be hampered by miscommunication, which means missed opportunities.

With RyderView™, you get real-time views of material on their way to the job site, so crews are effectively managed to optimize material and labor costs, while efficient communication tools pave the way to a frictionless experience.

Additionally, technology means data, and data is used to make informed decisions.

#5: Overcoming Regulatory and Environmental Challenges

Every project requires permits, and compliance with local ordinances—such as noise restrictions—can be tough, especially in urban settings.

Then, there are the environmental issues. As Elsevier points out in a research paper published on Scient Direct, transport makes up about 25% of all worldwide CO2 emissions, and road freight accounts for 29.4% of the total.

Ryder mitigates these challenges with a database system for managing local regulations and uses route optimization to reduce emissions, contributing to more sustainable building practices.

We also use smaller, eco-friendly trucks, such as 26-foot or smaller box trucks, to navigate tight urban environments and mitigate the environmental impact.

Returns and Reverse Logistics

The return rate on construction projects is high. Materials are damaged, projects are changed, and improper handling during delivery can all impact a project. Returning and replacing these materials have high costs in terms of time and money.

Implementing a robust system for tracking SKU-specific damage rates and employing advanced packing solutions mitigates the risk of damage. RyderView™ technology also facilitates the streamlined scheduling and management of returns.

A vigorous system of damage inspection protocols helps determine whether to leave, replace, or remove damaged items, while data-driven feedback loops keep improving packaging and transportation methods.

Case in point: Ryder’s collaboration with a national appliance manufacturer has saved the company tens of millions of dollars by identifying SKU-specific damage rates.

At Ryder, we know reverse logistics is critical to recovering value from returned goods, making returns efficient, and supporting sustainability efforts by promoting recycling.

The Bottom Line in Last Mile Delivery for Construction

Last-mile delivery in the construction industry encompasses a range of unique challenges, from handling and installation to coordination and compliance.

By adopting a combination of in-depth industry knowledge, technological solutions like RyderView, and strategic planning, Ryder has established best practices that significantly mitigate these pain points.

The future of last-mile delivery looks toward further innovations in automation, tracking technologies, and sustainable practices, promising even greater efficiency and reliability in construction logistics.