The Future of Last Mile Delivery

In today’s world, last-mile delivery is a boon for consumers managing their work, travel, and shelter all in one place. Last-mile delivery offers a variety of services, such as delivery of food, groceries, medicines, E-commerce, and logistics

The main advantages of last mile delivery are reduced time consumption and improved productivity. With online shopping on the rise, the demand for last-mile delivery solutions is also increasing. The last mile delivery market is forecasted to expand by approximately USD 60.82 Billion and have a compounded annual growth rate (CAGR) of 5.12% between 2023 and 2028.

There are several factors attributed to the growth of increased shopping trends, fashion, appliances, E-commerce, and premium smartphones, gadgets, and watches.

We will see how the impact of technology has transformed last mile delivery by enhancing efficiency, cost-effectiveness, customer satisfaction, safety, and security, mainly by adopting the use of electric vehicles to reduce the carbon footprint.

Big Data:

In today’s era, data plays a vital role in giving input to a company/business to know their customer’s age, location, geography, gender, interest, and previous shopping history, which allows them to scale up their business and serve the consumers. This also helps businesses/companies gather customer feedback and provide better service.

Big data helps companies to enhance quality, performance, demand, supply, and transport routes by having real-time data collection and analysis helps to achieve more customer satisfaction and loyalty. E-commerce giants like Flipkart and Amazon use predictive analytics to recommend products to customers based on their liking, search history, and purchase history.

Urban warehousing:

Nowadays, consumers are expecting the same business delivery, businesses seek ways to minimize the time and enhance the delivery experience by locating warehouses in urban areas, and companies reduce the distance between customers and warehouses by improving speed and efficiency.

AI powered-real-time tracking technologies:

AI and machine learning have helped last-mile delivery by tracking the current, live, and dispatched locations. It enhances operational efficiency, customer satisfaction, cost savings, improved decision-making, and reduced uncertainty.

By implementing real-time logistics data tracking using advanced GPS tracking and software systems, we can know order receipts, shipping details, regulatory data, etc.

Unmanned Aerial vehicles (UAV) Drones:

Walmart has completed over 600 drone deliveries within 30 minutes/less. It also plans on using its 4700 stores as delivery hubs. Contactless delivery is becoming more relevant as businesses adapt to the new post-pandemic

Internet of Things (IoT) and Blockchain technologies:

IoT offers real-time data for optimized delivery routes, tracking, efficiency, and trust. Blockchain ensures transparency, and traceability, and promises operational efficiency and cost savings.

It can redefine the logistics industry by transforming it to over $1.5 trillion by 2025.

Omnichannel retailing and predictive shipping:

It is becoming more popular as customers expect a seamless shopping experience. Amazon allows customers to pick products from a nearby store and return them.

Predictive shipping is a strategy used in supply chain management that uses predictive analytics to forecast and anticipate demand, inventory, and transportation needs. It allows companies to plan routes, allocate resources effectively, and minimize delays, speed, and reliability.

Conclusion:

Last mile delivery has a bright future ahead, which most people aren’t aware of. It has more inclined growth towards automation, artificial intelligence, and drones. This will create a huge impact in this sector by bringing new technology, new jobs, and innovation into play.

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