Last-mile delivery is the most crucial, expensive and challenging junction of supply chain, and it also is the most important to the success of businesses.
With the rapid growth of e-commerce and businesses turning online for increased profits and revenue, Last-mile delivery became more popular as commercial delivery is changing to adapt market trends.
“Everybody likes to get a package. In 2020, we’ll send more than 100 billion of them—and that number could double by 2030. Who will deliver all those packages, and how?”
– McKinsey
As per World Economic Forum, demand for last-mile delivery would grow by 78% by 2030. With this high demand coming the way, many trends are emerging to cater for the needs of the market starting with technological advancements. Artificial Intelligence (AI), Machine Learning, automation, autonomous vehicles, robotics, crowdshipping, and micro-fulfillment centers are tools being studied to enhance delivery operations and maximize efficiency. Something that feels a bit weird and alien but has proven to be extremely efficient is Drones Delivery! You read it right. Drones are part of the futuristic visions for last-mile deliveries as it is unmanned, reducing labor costs, and an environmentally friendly alternative to deliveries that do not require diesel generating vehicles. It has been estimated that 2,000 drone deliveries were happening daily all around the world in 2022.
Customers are also nowadays looking for flexibility and individual delivery service that cater to their schedules, needs and availability. This puts a lot of pressure on 3PL and even delivery agents. A few solutions are starting to see the light in order to serve the end users while making sure they are satisfied without disrupting the internal operations order of the company. The major talk is about Mobile pack stations. Mobile pack stations are flexible, on-the-go packing solutions designed to enhance efficiency in warehouses, fulfillment centers, and other logistics environments. They allow employees to perform packing operations closer to the point of product retrieval, reducing travel time and increasing productivity. This solution is suitable for low-populated areas and outskirts of cities where the infrastructure is poorer than city centers. It allows companies to provide excellent service to their clients, event the farthest ones.
There is as well the Big Data effect that directly impacts last-mile delivery and that is only expected to grow. It helps companies plan ahead by utilizing real-time data collection and analysis. It supports the company in becoming proactive and therefore planning ahead for demand, optimizing transportation routes, and improving order accuracy.
“Technology enables last mile delivery. Blending it with the will and determination to deliver, Gujarat has experienced the true power of e-governance.”
— Narendra Modi, Indian Politician
We should not forget the advancement of the century: Blockchain and IoT. Combining blockchain and IoT technologies has the potential to dramatically transform last-mile deliveries by tackling challenges related to tracking, efficiency, and trust within the logistics industry. IoT devices provide real-time data that can optimize delivery routes and ensure secure handling of packages, while blockchain technology offers transparency and traceability, bolstering trust and accountability in e-commerce transactions.
This strategic synergy not only enhances operational efficiency and reduces costs but also has the potential to revolutionize the logistics sector. The digital transformation driven by these technologies is expected to create over $1.5 trillion in value by 2025.
Something that is worth mentioning as well is a concept that would have been weird and alien to us prior to COVID-19: Contactless Delivery. People are more aware, some of them even consider it a non-negotiable requirement as it protects them from unknown variables. Their safety is the priority and they expect companies operating under the last-mile delivery wing to do everything in their power to make sure they abide by these specific wishes. This can be done through multiple ways including contactless proof of deliveries, which is done through digital signatures or other contactless methods.
90% of consumers view 2 to 3 day shipping as the standard, but any delay affects their satisfaction and makes them feel like their expectations are not met. Furthermore, the demand for same-day delivery has intensified, with nearly a third of consumers (30%) now expecting this level of service.
The future of last-mile deliveries is showing promise to become the leading cash-cow of the Transport and Logistics industry. With such rank comes great responsibility and even greater effort to meet consumer needs. Technological integrations and service optimization are key in the global success of last-mile deliveries.
References
Spector, S. (2024, March 15). Future of Last-Mile delivery and trends for 2024. Dropoff. https://www.dropoff.com/blog/future-of-last-mile-delivery-and-trends/
The future of Last-Mile Delivery: innovations and challenges ahead. (n.d.). Advatix. https://www.advatix.com/blog/the-future-of-last-mile-delivery-innovations-and-challenges-ahead/
Möller, P. (2023, September 26). Last Mile 2030 – The future of delivery | DHL Freight. DHL Freight Connections. https://dhl-freight-connections.com/en/trends/last-mile-2030-the-future-of-delivery/
