Logistics companies need to figure out how to make their shipping logistics more efficient and reduce costs to remain competitive. According to a recent study, approximately $200.42 billion will be spent on last-mile delivery in 2027
As a result, companies are scrambling to create novel technologies and test-driven supply chain models to boost parcel volume,speed up deliveries and customers, all while attempting to reduce costs. The delivery procedure is known as last-mile delivery and plays a significant role..
It is also more expensive and difficult. Many businesses decide on a distribution center near their final clients. The delivery will be quicker because there is less distance between the distribution center and the final recipients. Let’s examine how technology plays a main role in e-commerce and why delivering more effectively in this area is crucial.
Streamlining last-mile delivery benefits
Delivering goods from one location to another safely and providing excellent customer service requires the last-mile delivery process to be streamlined. To accomplish this goal, businesses can hire separate teams to handle route optimization, order distribution, vehicle utilization, customer and rider connections, and others.
The following list of five last-mile delivery solutions includes a wide range of benefits:
- Simplified delivery processes
Businesses also require human professionals to review new orders, classify them according to various criteria, locate the ideal vehicle, and perform other tasks. These tasks can be automated with the help of final mile delivery software, finishing in a flash with minimal human involvement.
- Automated planning of routes
By using last-mile delivery software, this issue can be solved and more deliveries can be made in a single day. Companies can use automated route planning to bring the vehicle back to its starting point. The car would then be prepared for the subsequent delivery or side trip.
- Tracking shipments in real time
Using last-mile delivery software, both the vendor and the end user can monitor the consignment in real-time to make sure it is being delivered on schedule. Additionally, if there were any delays, both vendors and customers could check the causes. Lowering the rate of return of origin would also cut down on the number of calls made to the customer support line.
- Improved visibility
Customers can check the estimated delivery time for their orders thanks to the final mile delivery software feature. If they are not present at the intended location at the delivery time, they can also change the delivery time or address.
- Rise in productivity
Businesses can easily handle more customers and concentrate on other business operations thanks to the automation of various business processes. They can raise productivity in the workplace by reducing costs, time, and effort.
What are your business strategies for implementing last-mile technology?
1. Develop a correct plan
In the last-mile delivery market, what was regarded as a game-changing strategy five years ago is now the minimal expected standard. Most successful last-mile delivery companies focus on providing a superior customer experience to boost profits and encourage repeat business.
How do you get there, then? by putting in place an ambitious and scalable plan. Learn how to enhance the customer experience and improve the quality of your delivery service. Find your competitive advantage by studying the rivals who are offering last-mile delivery services with success and completing the gaps in their operational strategy.
After that, incorporate the appropriate delivery management system into your technology stack and automate as many processes as possible in your delivery business.
2. Select the proper technology
Finding the right technology is essential to developing a successful last-mile delivery strategy, as was already mentioned. To compete in the market, most last-mile strategies need AI-powered route optimization, push notifications, digital proof of delivery, data analytics, and other related features.
In addition to a wide range of last-mile delivery-related features, we can assist you in developing a long-term business strategy that will increase revenue incrementally, reduce operating expenses, and vastly enhance customer satisfaction.
3. Place the correct metrics using robust analytics
Operations for last-mile delivery generate a wealth of useful data. You can discover the metrics that significantly impact your business if you can use the right technology to leverage it. You can identify upcoming opportunities and market trends by using data and concentrating on the right metrics to develop a sustainable growth strategy for your company.
Additionally, you can improve measurement standards for each and significantly lower operational costs by keeping an eye on the appropriate metrics. To become a leading name in the last-mile delivery industry, go beyond the conventional metrics like revenue and go deeper into customer experience, timely deliveries, first-attempt deliveries, customer feedback and ratings, and more.
4. Help delivery partners by using AI-powered solutions
The person working in the field is the most important component of last-mile delivery. You can devise various strategies, but your delivery partners will carry them out in the field.
Geofencing and dynamic route optimization are last-mile delivery’s two most important aspects. If your drivers can get to them, they can travel quickly and with little to no idling. We also update our delivery partners on delivery times and provide information on available shortcuts and traffic congestion. Also, you can utilize delivery fleet data to evaluate your fleet’s performance and develop better delivery strategies for the future.
5. Form the proper team
A strategy is only as effective as the team carrying it out. You can only be successful if you have the right team in charge, even if you have the best delivery management software and modern vehicles.
Ensure that everyone you hire is enthusiastic about learning and growing and contributes to the team. After that, instruct and inform the team about the technology you’re using, and make sure they adhere to the best practices your business has established.
When the learning stops, the team might grow accustomed to a particular work environment and become complacent. Training and development opportunities for those who remain with the company should be plentiful, even though not all employees will remain for long.
5 best ways technology is transforming e-commerce logistics
E-commerce is growing astonishingly fast and will continue to do so. Continue reading to learn how e-commerce logistics are changing due to technology.
- Artificial intelligence and Automation
Automation and artificial intelligence are already used in various contemporary logistics solutions, such as warehouse, supply chain, and return management. The benefit of artificial intelligence for logistics today is that it enables supply chain planning and prediction using AI and ML algorithms. The need to manage routine tasks found in large-scale eCommerce businesses and other departments is also replaced by AI-enabled automation.
- Internet of things (IoT)
The “internet of things” is a network of connected mechanical and digital computing devices that can transfer data without interacting with humans. The IoT ecosystem’s devices contain processors, sensors, and communication hardware that aid in data collection, transmission, and analysis.
The internet of things is combined with eCommerce logistics management to give businesses access to real-time information about the location of their shipments. Through sophisticated monitoring and tracking capabilities, IoT is creating several opportunities for the supply chain and cutting costs. Vehicles now come equipped with sensors linked to alarms, including cars, trucks, trains, and ships.
The development of IoT software has also made Radio Frequency Identification (RFID) possible. A tag is applied to the product in an RFID system, and radio waves are broadcast. The business can use radio waves to receive, process, and analyze data.
- GPS accuracy
Supply chain businesses no longer print out directions from the computer before they leave the warehouse. Over the years, the GPS devices’ accuracy in logistics has significantly increased and is meaningful.
- Big Data
Regarding e-commerce logistics, big data enables real-time analytics. Managing sizable amounts of supply chain data is always challenging if done manually. Failure to pay attention can lead to mistakes that will later impact your business processes. Big data plays a part in this process because the large amounts of data and how they are processed call for a more in-depth analysis.
Such technology can be useful in e-commerce logistics by providing you with insights into the patterns and trends. This will also make it easier for you to forecast the general state of a company’s supply chain and logistics performance.
- Autonomous vehicles and drones
Due to Tesla, automated vehicles are already on the roads. It is predicted that more and more motorized vehicles will rule our roads in the future. The eCommerce sector stands to gain significantly from this technological development. These automated vehicles are made to control lengthy highway stretches. They will therefore enhance delivery in remote areas.
Another development in technology that has the potential to significantly improve eCommerce logistics is drones. They will eventually be used to make higher-quality deliveries, given how quickly they are evolving. Drones in the air scan delivery locations quickly and expedite product delivery.
They also send an accurate count so that the inventory can be updated. Both of these technologies may need some time to gain traction in the e-commerce industry. They will advance and quickly emerge as a fresh development in e-commerce logistics.
The future of e-commerce depends on last-mile delivery
By using technology to streamline their last-mile delivery processes frequently, they will be able to survive in the future. The following changes may be observed shortly:
- Customer interface improvements for e-commerce and logistics companies.
- Introducing the solution on various internet-connected devices. Communication will be speeded up and the omnichannel strategy will be promoted.
- Consumer behavior can be better understood through more timely data collection.
- Faster and safer movement of shipments with better warehouse and storage facilities.