Advancement in technology always bring new solutions to age old problems, such as delivery of goods. Who would have thought that pressing a button on the phone can bring your goods at your door step? However, new Technologies also comes with new problems. One of the main concerns of supplies and demand are last mile delivery logistic technology. Companies are trying to find a better solution with custom software development for last mile delivery.
What is Last Mile Delivery?
The last part of the delivery chain, when parcels is moved from warehouse to the consumer. This is the last section of the logistic where goods are delivered to the door steps.
Current Problems with Last mile Delivery Technology
This is not something new, last mile deliveries cost more than any other part of order fulfillment. If we factor in fuel price, labor cost, vehicle and delays, it covers 53% of total delivery charge. When customer chooses the free delivery option, it means that companies have to bear the expenses of it.
Discrepancy between Urban and Rural Delivery
There is a big difference between last mile delivery in rural area and urban. Consumers in rural area mostly don’t get same day delivery or even speedy delivery. Also, there is the issue of live tracking. customers can only track their parcel in some areas and not the other.
Seasonal weather can affect last mile delivery in a big way. Rain is the biggest factor for late deliveries. This is something we cannot control but there should be a solution for this too.
Issue with Route Planning
To maximize the output of a delivery person, we need to provide them with the best route planning. Where they can deliver multiple parcels on the same route and save time. Currently our technology is subpar at best to create route like this and we need to depend on the delivery person to manage it.
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How Technology Advancement Makes Last Mile Delivery Efficient?
The first hurdle to cross is cost efficiency. In order to lower the cost of last mile delivery, we need to implement use of technology at the ground level. There is certain easy way Last mile delivery logistic solution can fix it, such as crowdsourcing. Instead of employing a delivery person full time, make it a gig work.
Real Time Tracking
Currently most delivery companies use this technology but not as effectively. Real time tracking allows customer to pin point location of their parcel instead of tracking location of warehouses.
Better Route Planning
By incorporating AI and machine learning to your custom software development of last mile delivery, we can map out better route. Instead of depending on delivery person, they can rely on the technology to guide them on most cost-effective route. They can also add weather prediction into it and update both delivery person and consumer about the weather condition during time of the delivery.
Future Trends of Last mile Delivery
If pandemic has taught us anything about future of supply chain and logistic is that demand for last mile delivery will rise. Every day, millions of people choose to order goods online and it has become a harder and harder to fulfil it. Here are some of the latest technological trends that will ease that burden for last mile delivery.
We all have seen those pictures where robots are being used for everyday work, but how realistic Is the vision? It is more practical than it sounds. Autonomous Delivery Robots is currently valued at USD 42.92 Million in 2021 and it is projected to reach 274.37 million by 2030.
Everyone has seen little robots roaming around in the street of China delivering for Alibaba. More and more companies are using these kinds of robots to deliver goods. Amazon has recently invested a large amount to self-driving cars. This all just a small indication of where the current last mile delivery trends are going.
In order to shorten the delivery distance, companies are now opening storage center in urban areas. This is an easy solution to reduce the cost of last mile delivery. Many companies like Amazon, wall mart and Ikea has started renting warehouse in populated areas to accommodate quick delivery.
Fulfilment warehouses can stock various items that are in trend and fulfil the order in short amount of time. They can also use this warehouse to store different goods from different industries. Also, by being at the center of large city, companies can find labor worker easily.
AI and ML
As we mentioned earlier, artificial inelegancy and machine learning can pe applied to solve some last mile delivery issue. AI can create best routes for delivery, track traffic, weather pattern and traffic congestion. This will ease the burden for delivery person and allow them to reach at the destination in short amount of time. Apart from that, these technologies also help with live tracking.
Crowdsourcing and SaaS
Finally, to cut down the labor cost, companies can use crowdsourcing. Instead of a full-time employee, someone can work part time to make last mile delivery. One of the benefits of this is hiring a local person as they are more familiar with the place. Also, most people have GPS in their phone, there is no need to provide extra appliances to for work.
Companies like Uber and Airbnb uses their SaaS to hire people. By applying software as a service, locals can sign up for temporary work and complete the task at a fraction of the cost. Gig economy allows companies to save cost on every delivery and provide better services to their customer.
In today’s age, finding last mile delivery logistic solution is not easy. Customer needs fast services and it is costing the company. However, last mile delivery also helps company with its reputation. Faster and better delivery means repeat customers. With Custom Software development for last mile delivery, we can update the last mile delivery technology, so that both customer and companies can take advantage of that.