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Last mile delivery is the last leg of a marathon. It’s the home stretch that truly tests a company’s endurance and preparation. Getting it right means winning the customer’s trust and appreciation. However, getting it wrong could spell disaster for the company. More so in today’s world, with global e-commerce sales growing by 27.6% this year alone. The sudden growth spurt has driven the E-commerce market past the $4 trillion-mark globally. In fact, predictions show that the Indian e-commerce sector alone will grow to $99 billion by 2024, which is a CAGR of 27% from $30 billion in 2019. At the rate that the Indian e-commerce market is growing it is poised to become the world’s second-largest E-commerce market by 2034.
The explosive growth in the E-commerce industry has transformed the last mile delivery ecosystem. Research shows that the growing need for last mile delivery services could increase by 78% globally before 2030. The global food delivery service market alone could post an annual growth rate of 11.51%, crossing $154 billion by 2023. Such tremendous growth means that last mile delivery needs to be more efficient, cost-effective, and fast, something that can only be achieved through technological solutions.
Let’s take a look at how technology is optimising last-mile delivery -
Live Monitoring
Real-time tracking technology has paved the way for a clearer understanding of the distribution process at every stage. It gives customers peace of mind as they can gain insight into the status of the delivery. Brands can also use it to track their packages and shipments or field officers as well. Thus, real-time tracking offers transparency of the entire delivery process.
AI
One cannot venture very far without AI (Artificial Intelligence) in today’s business world. One does not require deep insight to see that AI is increasingly becoming the core of business operations. So, it’s no surprise that most companies are adopting AI in some way. AI has enabled companies to handle complex data sets without hassle. It sets the foundation for other solutions like predictive analytics, which brings us to the next point.
Predictive Analysis
As technology makes its way into the last-mile delivery ecosystem, it offers companies a mountain of granular information or data. And, predictive analytics solutions tap into said data to reveal areas where there is room for improvement. For instance, data can be used to optimize shipping, warehousing, routes, and so on. Predictive analytics can also help businesses improve their operations by detecting market trends, future demand, etc.
Faster and More Convenient Deliveries
Everything boils down to the customer. Let’s face it, nobody likes a long and complicated shopping experience. Therefore, customers will always choose the most convenient way to shop. One bad experience could be enough for a customer to abandon you completely. Delayed delivery or a long wait time in today’s ‘same-day delivery’ world could mean that a customer will look elsewhere. So, a customer must be able to place and receive orders across all available channels. This is where omnichannel solutions make a world of difference.
In conclusion, the aforementioned points give us a glimpse into how technology is strengthening its grip on the last-mile fulfillment space. Moving forward, technology will no longer be a luxury but a basic need to keep your company’s head above water.
By Sunny Nandwani, Founder and CEO, Acuver Consulting