Advanced technologies can improve their last-mile delivery and provide faster deliveries to the customer.
FREMONT, CA: As more people turn to ecommerce for all their shopping requirements, speedy fulfillment and delivery is no longer a luxury, but it has become a necessity of every online shopping experience. If logistics firms and their retail partners want to stand a chance against Amazon Prime, it must be a top priority.
As a result, companies are racing to implement new technology and test supply chain models to maximize parcel volume, expedite deliveries, and attract consumers while lowering costs. But one of the most expensive and difficult features is same-day, final-mile delivery.
What is last-mile delivery?
The "last mile" of delivery is the final step of the process during a product's journey, starting from the warehouse shelf to the back of a truck and the customer's doorstep. It is the stage where the shipment finally arrives at the buyer's door. Last-mile delivery is the most costly and time-consuming aspect of the shipping process. It is also a critical feature to consumer satisfaction.
What is the last mile problem?
Whenever customers monitor a package online in real-time and see that it was "out for delivery," but it seemed like an eternity, they must know that the last mile delivery is inefficient. In rural areas, delivery points along a route can be several miles apart, with only one or two parcels being delivered at each one. In cities, the situation is not better, and cities make up for in-stop proximity is easily negated by near-constant disruptions of traffic congestion.
The expense and inefficiencies of the last mile issue have only increased due to the constant rise of e-commerce retail sales. It has significantly increased the number of parcels delivered every day and raised customer expectations to include quick and free delivery.
Technology solutions to improve last-mile logistics
Consumers can use a smartphone app to hail a cab, book a hotel, order coffee for the office, hire a handyman to install a TV, send flowers to that particular person, or even schedule takeout to arrive as they step through their apartment door due to location-based crowdsourcing.
The crowdsourcing model has long been used in logistics, hospitality, food distribution, and retailers looking to solve their last-mile delivery problems because of its low startup costs, asset-light operations, and enhanced customer experience.