Thanks to the Internet of Things (IoT) monitoring and exchange of data through supply chains, it is now possible to give the consumer a real-time view of their distribution across the mobile app (and control their expectations) as the business itself.

FREMONT, CA: Approximately 75 percent of U.S. businesses announced that the pandemic has affected their supply chain. This is partly due to the COVID-19 pandemic, as customers have seen a considerable rise in online shopping. The dramatic change in customer preferences has brought more focus and demand to bear on the last mile distribution market.

Explore key trends to watch out for in the last mile logistics in the coming year.

1. Same Day a Priority

One analyst firm estimates that customers, particularly millennials, are prepared to pay a 30 percent premium for same-day delivery and even more for assured delivery. The same-day delivery is projected to hit 25 percent of the market share by 2025, and, with surcharges being appropriate, delivery will become a profit center on its own. The drastic rise in home deliveries triggered by Coronavirus (COVID-19) could also make the same-day delivery economy more feasible.

2.  Delivery Way: On Schedule, In Full, No Mistake, No-Touch

Customers have lifestyles that do not suit delivery drivers, particularly at work when home delivery is planned. Customer options now include delivery boxes, often in nearby grocery stores or garages, custom return policies, and an opportunity to change delivery times at the last moment. The goal is a balance of service and profitability.

3. Consumers Get the Same Information as of the Professionals

Calling and e-mailing from consumers inevitably asking for the status of their distribution is costly to the resource. Delivery partners also have every opportunity to keep customers updated. Thanks to the Internet of Things (IoT) monitoring and exchange of data through supply chains, it is now possible to give the consumer a real-time view of their distribution across the mobile app (and control their expectations) as the business itself.

4. Configuration of the Delivery Business

Some organizations are big enough to put the elements of the distribution process in-house. One eCommerce giant, for example, owns its own airline and leased another cargo aircraft in 2019.  Others are sharing resources (particularly road transport) to optimize volatility in supply and demand. Finally, all the companies are outsourcing materials. The delivery of restaurants has been disrupted by online and mobile prepared food ordering and delivery platform.