“Last-mile delivery, ” or final-mile delivery, refers to the final phase of a product’s journey from a warehouse to a customer’s door. In the modern era, customers want their products delivered from fulfillment centers to their doors as soon as possible. Being a customer-centric stage in delivery, last-mile delivery is a key differentiating factor between a successful and unsuccessful logistics company.
Like everything else revolutionized by the latest technological advancements, last-mile delivery has also experienced significant evolution and transformation. This transformation has been primarily driven by the growth of e-commerce and shifting customer tastes.
With this fast-paced evolution in last-mile delivery, it has become more critical for companies to be in touch with the latest trends to stay ahead of the game. Here are the top 5 trends and predictions to help you meet the modern customer’s needs.
1. The Use of Data Analytics
Trend: According to a recent Gartner survey, 50% of the supply chain companies will invest in apps supporting advanced analytics capabilities by 2024. Last-mile delivery analytics are divided into three areas:
- Dashboard analytics: A dashboard shows important data simultaneously, making it easy to see real-time and historical data, enhanced visibility, and a 360-degree view of what’s happening.
- Predictive analytics using heatmaps: With heatmaps, companies can see potential opportunities in last-mile delivery, like where to set up new hubs, where customers are asking for things, and where new orders might come from.
- Reporting: Digital reports cut down the time needed to make daily run sheets and manual reports, keep data safe, and make it easy to find information, reducing admin tasks.
Prediction: Companies will better understand urban markets, customers, and operating environments using machine learning, deep learning, and other data analytics techniques. Last-mile delivery analytics can help many companies improve how they deliver things and make customers happier. By looking at traffic, weather, how long deliveries take, where they go, and what customers say, companies can find and fix delays, improving the delivery process.
Here are the key benefits of Last Mile Delivery analytics:
- Cost Savings
- Inventory Optimization
- Delivery Time Optimization
2. Real-Time Tracking Technology
Trend: According to a recent survey by Bettermile, 64.4% of customers expect Real-time last-mile tracking to be available with every parcel they receive. Also, industry stats show that companies using real-time supply chain tracking have reduced logistics costs by up to 20%.
GPS and RFID enable real-time last-mile tracking, enabling e-commerce companies to monitor packages in real-time and offer customers precise delivery predictions. This feature is increasingly used in last-mile delivery, with major companies utilizing GPS to give customers live updates on their package locations.
Prediction: Companies can monitor their shipments in real time with the help of real-time last-mile tracking technologies. Tracking orders can help find issues early- so companies can fix them fast and avoid delivery troubles. It makes customers happier by solving problems—they can see where their order is and know when it’ll arrive.
Since unhappy customers are a significant risk, real-time tracking, especially in the last mile logistics, can get them involved and subsequently make them loyal and satisfied. Companies that use real-time tracking effectively will accomplish the following:
- Customer satisfaction and loyalty
- Proactive risk management
Read our latest blog to get insights on Latest Supply Chain Challenges and Oppurtunities in 2024.
3. Sustainable Delivery Practices in Last Mile Delivery
Trend: According to Sifted, 88.8% of customers agreed that companies should offer an “eco-friendly delivery” option at checkout, and 69% said they had made decisions based on sustainable delivery practices. The demand for sustainability is growing despite the pressure of lower prices.
Looking ahead, there’s a lot of potential for companies that align with the global sustainable development goals, possibly unlocking up to $12 trillion in market opportunities by 2030. A survey conducted by SK Group involving 1,500 U.S. adults revealed that 72% prefer products packaged in recyclable or reusable materials, indicating a strong consumer demand for sustainability. Progressive companies are taking note by integrating recycled cardboard, plastic, and eco-friendly fillers into their packaging strategies, positioning themselves to meet this growing demand.
Prediction: One of the critical last-mile delivery predictions is regarding a surge in sustainable practices. Customers have become more eco-conscious regarding delivery emissions, packaging materials, and sustainable delivery. Retailers are increasingly considering greener delivery options like autonomous electric vehicles and drone delivery to become green logistics retailers. Big companies already use electric vans for more eco-friendly deliveries. This will lead many companies to aim for zero emissions and adopt more sustainable practices.
Simultaneously, sustainability will gain increased importance owing to corporations’ socio-ecological responsibilities and growing customer demand for sustainability. Companies with a more eco-centric policy will have:
- Enhanced brand image and customer loyalty.
- Cost reduction over time.
- Compliance with environmental regulations
- Positive social and environmental impact.
4. Automation in Last Mile Delivery
Trend: According to Markets and Markets, the global market for autonomous last-mile deliveries is expected to grow from $0.9 billion in 2023 to $4.2 billion by 2030. Last-mile delivery automation transforms logistics, changing how deliveries are managed and executed. Here are key ways it’s making a difference:
- Improving Logistics Management: Using advanced software and machine learning, couriers can look at past delivery data to see trends, forecast needs, and spot supply chain issues.
- Optimizing Routes: One of the biggest changes comes from automating route planning. Algorithms can now design the best delivery paths, considering traffic, delivery times, package details, and where customers live.
- Scaling Partnerships: By sharing data and linking systems, they can work better with big online retailers, local shops, and other delivery firms. This means goods move smoothly, pick-ups are timely, and everyone involved works more in sync, leading to happier customers.
Prediction: Going on with last-mile delivery predictions, robots, and self-driving vehicles are being tested for their ability to work non-stop and minimize human mistakes, which could make deliveries quicker, cheaper, and safer while also reducing pollution and fuel use. Drones offer a promising, sustainable way to send packages fast without the need for traditional vehicles, though there are still some hurdles to clear regarding rules and practicality. Automated systems help in planning the best routes quickly and sending drivers out efficiently, which saves time and money. This automation speeds up delivery and improves warehouse operations by moving products faster.
Companies incorporating AI and automation in their systems will be industry leaders, as automation will help them achieve:
- Reduced Labor Costs.
- Higher Scalability
- Optimized Setup
5. Multiple Delivery Options
Trend: According to Retail Week, up to 70% of customers wanted flexible or last-mile delivery diversification options. Last-mile delivery services are divided into two main types:
- Scheduled: Scheduled deliveries are set up days or even a week in advance, with customers picking a specific time for their delivery. Carriers or logistics providers then plan routes for the next day using route optimization software, considering factors like transit time, vehicle capacity, inventory levels, driver experience, and any special qualifications needed.
- On-demand: On-demand delivery kicks in when an order needs quick delivery, like same-day delivery. The urgency of on-demand delivery means there’s no time to efficiently organize orders by vehicle or route to save time and money. Delivering each order individually without a plan can drastically increase costs for shippers. But on the other hand, it builds trust and loyalty from the customer’s end.
Prediction: As they say, do not put all your eggs in one basket. The same goes for having multiple delivery options. Customers typically have different delivery requirements, so companies should adopt a customized delivery strategy. According to research, more companies are now employing this tactic to reduce risk and get the best prices. This expands your company to more customers with a wide range of requirements and reduces the risk of being stuck while over-relying on a single delivery method.
In 2024, with this evolving industry, having multiple delivery options will improve the companies’ overall stability and growth.
Companies having multiple delivery options will accomplish the following:
- Customized delivery strategies.
- Risk reduction in logistics.
- Access to a broader customer base.
With these innovations in last-mile deliveries, are you looking for a future-proof logistics partner that has incorporated these latest trends? Look no further. let me introduce you to Ecom Logistics – where seamless logistics solutions redefine your supply chain experience while keeping sustainability at the forefront of our operations. From same-day and next-day delivery to streamlined, faster fulfillment operations to offering freight services, we provide various logistics services. We’re dedicated to exceeding expectations and committed to ensuring your products arrive swiftly, timely, and safely. Book a free consultation today! Click Here
