9 trends in the delivery of Last Mile logistics
Last mile logistics in Supply chains and suppliers, supply material from business to business, but the growth of trends such as e-commerce, mass applications, and same-day delivery has changed the last mile segment. If the final mile is ready for disruption, supply chains need to start to improve these operating processes to find new and cost-effective ways of delivering products to customers.
Amazon Prime stimulates a lot of innovation and destruction. Since 2011, the service has grown by 30% a year, says Andre Faran, a leading Accenture postal consultant and package.
Of course, supplies to residential customers are inefficient and expensive than deliveries to businesses. Carriers bring individual packages to low density areas and are often not at home. However, customers need faster and cheaper provision.
Here are nine trends that affect last mile logistics achievement:
1. Faster action
Particular attention will be given to the logistics and operation of the contract in relation to the increase in demand on demand or on the same day.
“We are aware of the huge pressures and pressures of action to reduce orders to range and speed much faster than many technologies can do today,” said Michael Armanius, vice president of sales and marketing at Datexcorp, logistics provider. third party (3PL) Warehouse Management Solutions. “What would usually take less than an hour, all sudden needs had to go in minutes, causing planning problems.”
Examples include pharmaceuticals and food supplies. Customers want a delivery box in a few hours. “When the order arrives, it must be processed and ready to go so that we can meet this very narrow window,” said Armanius.
2. Gig Economy / Mass Access Applications
There is no better way to show the growth of a huge economy and the use of mass applications as if you are looking at the venture capital that flows into the last mileage sector and urban logistics.
Venture capital investments in supply chains and logistics launch in 2015 were more than four times higher than in 2014 ($ 1,202 million versus $ 388 million), Farand said in venture capital investments in the same place in the first quarter of 2016 was $ 1.75 billion. Companies like UberRUSH for packages, Postmates, Deliv and even Amazon Flex provide independent drivers on the spot market. Companies publish delivery tasks in their requests to alert drivers to available concerts. “Collecting ad hoc and shipping is not as effective as providing something where you have reliable route management, with items in your truck, and you know where you’re going,” said Farand. But technology uses this car, and those with a car (or even a bicycle) who want to make extra money can do so.
The geographic coverage of these services is limited and they are not yet widely used, as in the case of traditional carriers. They are usually delivered to large cities only. “This worries the hereditary carriers, but they have not yet been affected,” Farand said.
Venture capitalists have an interest in knowledge and technology based companies, not assets such as vehicles. They are targeted at companies that use analyzes and information to find out how to make less money, and use drivers with their own vehicles as too much capacity. “There will be a battle between the boys with buildings and property, against boys with applications and information.” The winner will be a combination of the two, ”said Faran.
3. Focus on visibility
Legacy media has better tracking capability with classification and tracking information being confirmed. Regional and local mileage organizations do not necessarily have the technological bandwidth to provide this data.
“As a result, you have a lot of data requirements to communicate with them, which complicates the task,” Farand said. This data is important for tracking whether a package is delayed or lost. However, Smartphone apps have revolutionized GPS tracking.
Now, customers can see where the driver or package is located. “We can do a very simple and cost-effective delivery test with a signature at the delivery point,” said Faran. “We can decide whether this person who delivered the load went to a physical object.” Although this process has not yet been standardized in all areas, consumers will increasingly require industry to move in that direction.
4. The postal service is developing
Expired carriers, such as the US Postal Service (USPS), change over time and continue to grow. In order to reduce mail distribution, the increase in e-commerce packages may not be introduced at a more appropriate time.
It is only a surcharge for USPS to add a package to a home delivery service because the carrier is going to the house anyway. For UPS or FedEx, the same shipping costs pay more because it is an independent stop.
According to Armanius, the USPS is also seeing a revival of non-traditional freight processing. “Many customers return them to their ranks to introduce special products in one day or several days,” he said. Another change is the distribution of Sunday parcels.
Other changes may also be on the horizon if other national postal services are examples. Although the USPS does not supply food to the restaurant, New Zealand Post has launched a pilot project to provide Kentucky fried chicken to increase revenue as mail distribution has fallen in recent years.
5. When last mile delivering goods
More and more companies are using their own vehicles or sharing them to deliver the last mile – and that includes Amazon. “Traditionally our customers have not been involved in transport. They had no trucks, minibuses or vehicles, but they are now starting to work with competitors or other companies in the region to use vehicles, ”said Armanius.
Some 3PL companies now have their own local supply services. They have their own vehicles and payment factors for local, short-term transport. “In New York, we have a customer with a 400,000 sq ft warehouse and 17 vans, and distribute and distribute goods to customers all day,” Armanius said.
6. Urban warehouses
Last year there were at least 58 Prime Now Amazon centers in the United States for customers who needed to be delivered immediately on the same day. The increasing trend is that organizations can create or use these urban storage areas and have easy access to products for the rapid delivery of customers.
“This is the only way to reduce the speed of distribution or transport,” said Faran. Amazon’s two-hour presentation is not being heard. “That’s what prevents everyone. I have not heard of any seller or distribution company that could offer the same price as Amazon. ”
Amazon has a market advantage and most retailers are trying to catch up. Large, large boxes offer minimum orders two days, while Amazon offers two hour delivery. According to Faranda, the three-day presentation was considered quick.
7. The carrier becomes a seller
With large data, retailers can predict what else a customer will want, even if they have not asked for it. The concept of a mobile warehouse is gaining momentum. The supplier can supply uncontrolled supplies to lorries for delivery, allowing drivers to sell more during the distribution process.
Like Amazon, customers can see other products they would like to see during the registration process, the driver can bring products that the user has previously ordered or may require or want, and process’ the possible additional order in person. “We see it on the food side,” Armanius said, as well as household items and even clothes. From a pharmaceutical perspective, drivers can sell tablets and syringes.
8. Technology and intelligent sensors
In addition to providing supplies and supplies at any point in the process, customers want to track items that are temperature sensitive. “Many of our clients give different sensors and monitoring devices in their packages,” Armanios said. Therefore, a pharmaceutical company, a manufacturer of frozen foods or alcoholic drinks knows the temperature of the probe and, optionally, the moisture level at each stage. It becomes an industry standard.
Performance Centers use weather data to plan the addition of additional packaging materials to reflect temperature changes. If they know that they distribute to Tulsa, well in summer, and that the temperature will be 102 degrees, they can add more freezing or dry packages. The carriers then use the audit data to track the product accordingly.
9. Distribution by cars, robots and robots
While these futuristic delivery options evolve and prove, they are not yet in the trend. But watch them in the future.
According to Faranda, if packages can be provided by independent vehicles or UAVs, this will greatly change the game. The highest cost of supply is work, which accounts for 60% of the cost. Labor supplies, availability and change currently limit supplies. Robotic provision can be made 24 hours a day. However, the distribution of drones may be limited in areas of high urbanization due to regulatory and operational problems.
The introduction of the robot has already been tested in San Francisco’s Yelp Eat24 using marble robot on the urban pavement. One minus? The robot needs an escort in case of problems. McKinsey will present the future where independent vehicles and drones provide 78% of all items, with only 20% of traditional deliveries and a further 2% being delivered by carriers.
Whether the future is independent, these nine trends show that stakeholders across the supply chain are trying to improve the last mile to keep pace with higher consumer demands.