In this article, Vardan Markosyan, the CEO of Less Platform, reflects on how the delivery industry is rising to the challenge for better last-mile logistics and what to look out for in the coming years.
Last-mile logistics and route planning is changing. In the last few years, the home delivery industry has boomed, and more investment has been made in solving the inefficiencies of the final stretch. These include inner-city traffic and parking restrictions. In this article, we look at some of the ways the industry is rising to the challenge for better last-mile processes and what to look out for in the coming years.Â
1. AI and Last-Mile Logistics
Although artificial intelligence has been long used in the logistics industries in the form of tracking and data applications for freight, the last decade has seen an improvement in technologies and a rise in the use of AI to diversify distribution possibilities.Â
The three trends driving the current surge in AI technologies are cheaper and better computing power, the use of big data, and an improvement in algorithms. These forces are evident in the form of better applications, more advanced hardware, and new possibilities for efficiency in last-mile logistics.Â
Whether through better route management, drones, or self-driving vehicles, AI is revolutionizing the last-mile of distribution channels. The improvement in efficiency using this technology is so encouraging that a fully integrated AI-driven industry looks more like an inevitability than a possibility. Â
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2. Alternative Transportation and Logistics Methods
The last-mile logistics industry has become more complexOpens a new window in recent years due to customers’ changing demands as more and more commerce is transacted online. Logistics is no longer a simple case of managing a schedule and fleet of workers; there are new technologies to integrate and expectations to meet.Â
Customers can optimize their orders to be delivered according to specific schedules. However, retailers often incentivize specific schedules for customers to help with bulk orders. Customers sign up for a specific delivery schedule offered by the company and receive an offer or promotion in return.Â
Delivery methods are also changing. At present, the logistics network for last-mile deliveries is dominated by vans and labor services. As more AI is introduced, there could be significant improvements in efficiency followed by new delivery modes such as drones and autonomous vehicles.
3. Drones
According to data, the last mile is the least efficient part of the delivery process because of traffic, parking restrictions, and waiting times, especially if vans have to travel long distances for a single delivery in a rural location. Drone technology offers a way of making the last mile more efficientOpens a new window and offering customers a better experience.Â
Companies that have introduced drones to their logistics processes have noted a significant increase in efficiency and customer satisfaction. Drones can deliver local parcels in around ten minutes, avoiding traffic and parking restrictions. As drone delivery services expand, it will become increasingly difficult for logistic networks to compete without them.Â
Despite the obvious benefits of drone delivery, some obstacles remain before this new technology can be fully implemented as a workable alternative to last-mile vans. There is currently a weight limit for drones — they can only deliver single parcels and have a limited flight range.Â
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4. Self-Driving Cars
The autonomous self-driving car has been on our radars for a few years now. More and more startups are developing these autonomous vehicles with various objectives in mind. While some of the kinks still need ironing out, this fascinating technology presents huge possibilities to the last-mile logistics industry.Â
A startup project named Nuro, for example, uses robotics to improve everyday lives. It has now plunged into last-mile logistics by developing an upgraded autonomous vehicle that delivers parcels and groceries locally.Â
Automotive vehicles offer several benefits to logistic companies for last-mile deliveries. They can be easily programmed and encoded with instructions. The programs are also fully flexible. Since autonomous cars drive at continuous slow speeds, the time management for last-mile deliveries is more accurate for customers.Â
5. Route Management SoftwareÂ
While drone technology and autonomous vehicles are still in the near future for last-mile deliveries, route management software is very much in the here and now. There are various route management software for companies to choose from, each with its advantages. This software is now invaluable.Â
Route management software allows delivery companies to program an algorithm that orchestrates the daily orders. The algorithm will prioritize orders and automatically adjust the schedules of drivers, eliminating wastage and improving customer experience. It also allows operators to change the last mile route management in real-time.Â
The majority of last-mile operators now use route planning software to improve efficiency and facilitate a better customer experience. The future looks bright for last-mile delivery efficiency, particularly with AI, autonomous vehicles, and drones. Until then, however, effective route management software is the best way to build an effective last-mile logistics strategy.
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