The last-mile delivery sector has been undergoing several phases of considerable change. By nature, the growth of e-commerce is witnessed relentlessly, considering increasing consumer expectations and continuous technological advancement. This paper takes a look at the trends in innovations of the last mile, from the flourishing nature of e-commerce to same-day and aerial delivery. Meanwhile, we provide a data-driven look at efficiency improvements between 2019 and 2023.
It entails transporting goods from a distribution centre location to the final customer. This is probably the most complex and expensive part of the entire logistics chain, where intricate urban settings coupled with specific consumer demands for quick and reliable transportation services are the common characteristics of this phase.
Key Trends in Last-Mile Delivery
The boom in e-shopping, further driven by the COVID-19 pandemic, has widely raised the need for effective last-mile delivery. Grand View Research has the market pegged at USD 357.38 billion by 2030, with a CAGR of 10.20%.
This has now changed, and delivery offers from businesses have become better and faster than before, made several times on the same day or even the next day. This has also brought about a change in the way businesses come up with their logistics solutions; moreover, through operational sophistication, they are now on par with consumer demand.
Drones and other autonomous vehicle applications greatly improve last-mile delivery. These innovations promise to bring not only reduced time in delivery but reduced costs in the process, with the added benefit of getting beyond gridlocks that consist of not being able to have a delivery ready because of traffic jams and a labour crisis.
The inclusion of smart technologies, such as IoT devices and AI-based analytics, has changed the way last-mile delivery takes place. Real-time tracking allows customers to follow their deliveries, thereby making the entire process transparent to consumers and increasing customer satisfaction.
Companies are now looking at a hybrid fleet management system by linking their delivery vehicles and third-party providers to achieve a scale-demand operation. This would allow an organisation to scale their operations based on demand, thus saving costs and improving service levels at the end of it.
With rising concerns about the environment, businesses are making a deliberate move to change their supply chain processes toward sustainable deliveries. This includes electric vehicles and eco-friendly packaging to ensure the smallest carbon footprint through last-mile deliveries.
Linear progress in last-mile delivery is marked by hysterical growth in technology and changing consumer expectations. With the growth of e-commerce, companies ought to be realigning themselves to benefit from such innovative solutions to boost efficiency and sustainability. The trends above discussed bring out a very important aspect: changes ushered in by new technologies almost mandate traditional players to innovate at a much faster rate in order to remain competitive in the logistics arena.
Concentrating on bettering last-mile processes keeps organisations equipped to delight their customers, which is how brand loyalty is earned and secured long into the future.
Hexalog leads innovation in logistics, providing state-of-the-art but practical solutions for optimising last-mile delivery processes.