Significant Developments in Last-Mile Delivery

Logistics Tech Outlook | Monday, January 03, 2022

eCommerce has grown to account for an increasing share of retail sales, transforming eCommerce fulfillment in general, and last-mile delivery in particular, into a mission-critical sector for brands and the logistics providers that deliver for them.

FREMONT, CA: The COVID 19 epidemic accelerated the eCommerce ages without warning. eCommerce expansion, which was predicted to take five to ten years, occurred within six to twelve months, introducing a significant challenge for online sellers: the eCommerce fulfillment process.

Due to the growing rivalry, merchants and marketplaces must boost their logistical operations and last-mile delivery services. As consumer expectations for faster delivery and more convenient options continue to rise, prominent industry participants set new standards for fulfillment speed, cost, and convenience. However, operational expenses can be prohibitively high, and shipping companies are currently straining to meet record-breaking demand. Solving these problems is critical for retailers and other eCommerce companies to scale their online sales successfully.

Significant shifts in last-mile delivery technology

1.Home delivery is rapidly expanding: Home deliveries are expanding quickly due to the eCommerce boom, posing new and distinct issues for last-mile logistics companies. Shipping businesses must adapt to rising consumer expectations and live up to high standards to keep retailers and parcel recipients satisfied with their services.

2.Delivery without contact and with white gloves: Today, retailers must prioritize convenience and security in their last-mile delivery process, which is why many companies have begun offering premium services such as white glove delivery. This is typically available for high-ticket items or items that are physically huge, and it may include delivery and installation or assembly in the fitting room of the home.

3.Contactless fulfillment: Many clients appreciate the convenience of contactless fulfillment. Offering package drop-off at the customer's doorstep and other contactless delivery methods may increase brand loyalty and serve as a new customer magnet for customers seeking this service.

Last-mile delivery, alternatively referred to as final mile delivery, is the supply chain's final leg – the handoff between the business and the end client.

The core final mile delivery flow consists of five significant steps:

1.Online orders are processed centrally. This enables both the sender and recipient to track and understand the order's status along the supply chain.

2.The order is routed to the transportation hub.

3.Packages are routed to a particular fleet or vehicle. This method can be automated (as with on-demand delivery), human, or a hybrid of the two.

4.Orders are scanned as they depart the transportation hub to keep the system—and all stakeholders—informed throughout the last mile.

5.The parcel is delivered to the final location, and the attempted delivery is confirmed.

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