8 Trends that will transform last mile delivery logistics in 2020
Last Mile Delivery is going through exciting times in the age of Amazon. Consumers now demand instant gratification, and their preference is inclining towards faster delivery fulfillment, which demands last mile delivery to be orchestrated with more precision.
Same-day deliveries have been on fire. This growing uberization of delivery has brought a new dimension to last mile delivery logistics.
Workflows in last mile delivery are shifting towards more optimization, and tech enablement to provide a great experience to the end consumer as well as stay profitable in the long-run.
In 2020, last mile delivery will continue to transform, perhaps in ways unimaginable. However, here are a few trends that we expect will continue to shape the delivery logistics landscape for last mile:
1) More disruptive delivery SLAs to follow
Demand for speedy deliveries has brought a lot of disruption in the way demands are being fulfilled. Delivery disruption has led to the emergence of same-day delivery, next-day delivery, 2-4 hour delivery as well as hyperlocal delivery. Free and fast shipping is a hot trend picking up with customers. Reportedly, same-day delivery will reach a 25-percent market share by 2025.
Customer touchpoints provide the data that can be churned with the help of technological tools to arrive at more disruptive delivery models in the last mile supply chain. Expect this disruption to continue in the years ahead as technology gets more smart and intelligent.
How Dista helped a pizza chain to fulfil its SLAs and scale up delivery operations. Read the complete success story.
2) Delivery fulfilment that is fast and efficient
Customers are spoilt for choice with shorter delivery windows, and this trend will continue in the last mile space, especially in the e-commerce segment. Consumers, primarily millennials, are willing to pay up to 30% premium or more for same-day delivery, reports McKinsey & Company, with an overwhelming majority willing to pay extra for guaranteed delivery. This clearly indicates that companies will need to work around this very important insight.
Your customers want all the information about their package and they want it now. So delivery fulfillment will see a more structured approach to drive efficiency and speed. Delayed or missed deliveries will jeopardize customer experience resulting in loss of business.
3) Preference for omni-channel delivery
82% of customers say they are more likely or much more likely to purchase from a brand with multiple delivery options. Seamless connectivity will drive the last mile delivery as customers want the flexibility to place and review their orders across devices, channels and platforms.
For example, for the QSR food delivery industry, customers may choose Zomato, Swiggy or UberEats, over app, call or desktop. It is expected that restaurant delivery will become a $200 billion industry by 2025. So the delivery process needs to be well-orchestrated to accommodate this huge growth with multi-channel functionality and integration.
4) Intelligence and analytics will see a spurt
Make way for intelligent last mile delivery operations. We have already seen an increasing spurt of advanced technology in the delivery industry. IoT based connectivity ensures tracking appliances are connected at all times, even offering offline connectivity. Intelligent scheduling uses advanced algorithms for matching the right task with a rightly skilled delivery executive. Real-time tracking and route optimization creates an efficient eco-system to plan for accurate ETAs and meet delivery SLAs.
Customer data points across the delivery lifecycle are constantly being evaluated with analytics tools to present detailed dashboard reports providing a review of delivery performance. Delivery automation is going to become more intelligent to make last mile deliveries more predictive, which opens up a huge opportunity for cross-selling, and eventually, more business revenue.
5) Autonomous vehicles, bots, drones, robots
In advanced markets, the delivery space is already seeing the emergence of autonomous vehicles, robots, and drones to take up some of the load. Blame it on labor shortage or offloading routine tasks to speed up delivery operations, these advanced unmanned channels will see a spike at places where limited human intervention is necessary. We already have chatbots bringing in a significant amount of success with handling customer queries virtually. Cut to field, unmanned assistants will see more interest to make delivery competitive.
6) Delivery optimization with location intelligence
Optimized routing has a significant role to play in achieving successful last-mile deliveries. Better routes determine better fleet and resource utilization with less idle time on the road as well as fuel efficiency. Hence, this location intelligence will be vital for companies looking to transform their last-mile delivery numbers. Based on address data, companies can plan their field runs and work out the best possible combinations for optimized results.
7) Pushing the mandate for sustainable deliveries
Sustainable last mile is going to be the trend to watch out for. Companies are pushing the mandate for eco-friendly last-mile deliveries. To make this a reality, technology will be remarkably leveraged. This could be in the form of optimized routes to save fuel and time, optimized scheduling to allocate jobs to the nearest runner boy, as well as the adoption of zero-emission fleet to manage the carbon footprint.
8) Transforming urban logistics
Given the evolution of last mile, logistics and warehouse models will also see a significant transformation in way they handle deliveries. With customers demanding speedy deliveries, the logistics part will have to be worked around to meet the needs.
Hyperlocal is another delivery model coming up to the front, where the focus is on sourcing and delivering from local vendors to meet the shorter delivery windows. This will see consolidation and integration between several logistics and third party fleet operators to sync up in the race to provide the most effective delivery channel.
Delivery management software like Dista makes it easy for businesses to automate, manage and analyze their on-demand deliveries.
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