The last mile logistics is essential for the logistics companies because the customers are demanding quick delivery.
FREMONT, CA: The last mile logistics are among the most overlooked aspects of transport networks. The last mile does not seem very significant on the surface, but it can make up 28 percent of a shipment's overall cost. Furthermore, e-commerce development is radicalizing how shippers view the logistics of the last mile. The company needs to consider what defines last-mile logistics, its complexities, how it affects e-commerce and omnichannel supply chains, why it is changing, and how modern technology strengthens it to understand the wide-ranging advantages and main issues involved in last-mile logistics.
What Is Last Mile Logistics?
Last-mile logistics represents the final phase from a distribution center or warehouse to the delivery process's end-user. Even if the name suggests it is the last delivery mile, the last mile's actual delivery can vary from a few blocks to 50 or 100 miles. Last-mile logistics most frequently requires parcel or small package carriers to carry goods to customers. Parcel shipping is estimated at more than $83 billion, according to McKinsey and Company, and in developed markets, the rising e-commerce industry will double in size in about ten years. In addition, last-mile logistics has been described by shippers of all sizes as the foundation for driving growth and profitability.
Last Mile Logistics Are Crucial to Modern E-Commerce and Omnichannel Supply Chains
Last-mile logistics enable shippers to quickly and cost-effectively bring more goods to customers, both of these are an essential factor in e-commerce and omnichannel supply chain. Consumers are ready to pay rates for improved delivery options for the last mile, like same-day or instant delivery. By 2019, e-commerce revenues are projected to hit $2.4 trillion in size, and last-mile logistics demand will rise. Although proven e-commerce giants, such as Amazon, have mastered the logistics of the last mile, the small and medium-sized shippers can still take advantage of this growing demand if they deal with last mile delivery issues.
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