Top Trends in Logistics: Delivery Innovations in the Last Mile
The last mile is the most crucial step in the supply chain. Ensuring your goods reach the store or customer intact, on time, and efficiently can feel like a constant battle – but recent innovations may change the way you look, work, and handle your logistics.
At Allegro Logistics, we stay on top of current and emerging trends in last-mile logistics and delivery to ensure every customer order is treated with respect and fulfilled with excellence. In this article, we’ll dive deep into last-mile delivery, detailing innovations, best practices, and the future of the industry.
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Understanding Last-Mile Delivery in the Logistics Chain
Last-mile delivery is the final step of your logistics supply chain. It includes everything involved in getting your package from the transportation hub (i.e. the warehouse) to the final destination (i.e. the retail store or end customer).
As last-mile delivery is the final stage of fulfilment, it is often regarded as the most crucial step. All other efforts build up to this point, so ensuring a streamlined last mile will help your labour reach fruition.
To properly handle your last-mile logistics, a number of processes and parties are involved. These include:
- Third-partly logistics (3PL) providers
- Warehouse and stock management
- Asset delivery (including picking and packing)
- Scheduling and receipt of goods
- Failed delivery management
Each of the processes involved can be enhanced with the use of modern technology and innovations – finding out which of these you’re already using, and where you can improve, will greatly influence customer experiences and the overall efficiency of your logistics.
Learn more about the role of third-party logistics in your supply chain >
How has Technology Impacted Last-Mile Logistics?
The impact of modern technology is far reaching, but there’s perhaps nowhere more affected than logistics. With different applications from route planning and warehouse management, through to e-commerce integration and real-time feedback, there are countless ways that technology has improved the supply chain.
Here are some of the key benefits recent innovations are offering the last mile:
Data Flow. Better handling of data from A to B means you can be sure metrics like delivery time, stock, and costs are up to date – providing a holistic view of your logistics.
Visibility. More in-depth analysis of your stock and locational information means you can provide a clear view to clients on whether they can make a purchase, and when it will arrive.
Transparency. Improvements to record-keeping methods mean you can prove authenticity at each point in your supply chain, enhancing trust factors while reducing the potential for fraudulent activity.
Security. The application of new and better technology comes with added benefits to device and network security, reducing the likelihood of data loss and disruption due to cyberattacks.
Optimisation. Modern route planning and supply chain analysis tools enable better-optimised routes, cutting down on delivery costs and times while improving the customer experience.
Sustainability. Paper free systems and electric vehicles all feed into a greener supply chain economy, helping you meet your sustainability goals while provider a more positive impact on the planet.
Emerging Trends in Last-Mile Delivery
There are a huge number of emerging trends that are impacting the last mile. These come in many different forms such as process improvements, delivery methods, and customer expectations, all utilising technology such as AI and integrations to streamline previous inefficiencies.
Here are the top 10 emerging trends to keep your eye on:
- Real-time tracking
- Generative AI in various applications (e.g. customer support, warehouse integration)
- IoT devices
- Smart co-bots
- Heatmaps, analytics, and digital reporting
- Recyclable packaging
- Electric transport (e.g. electric vans, cargo bikes)
- Drop-off points
- Drone delivery
- Variety in delivery times and methods on offer
Take advantage of the top trends with cutting edge fulfilment from Allegro logistics >
What are the Best Practices for Optimising Last-Mile Delivery?
When thinking about optimising your last-mile delivery, it can be easy to get lost in the sea of information and innovations available to you. To help you stay afloat, here are the top three things to prioritise during your optimisation process:
Create a robust strategy
Every good plan starts with a strong, informed strategy. Without having data to guide your efforts, you’re likely to miss out on receiving the best return.
Building a strategy means:
- Analysing what you’re doing now and your current market position
- Taking a look at what is out there and where your inefficiencies lie
- Creating an implementation plan that prioritises critical elements
Once you’ve got your strategy in order, and are satisfied it is back by relevant and accurate data, you can move on to making the change.
Key Fact: Customer expectation, satisfaction, and retention are the core of any supply chain’s needs. Make sure your strategy focuses on these elements to secure the best results!
Implement the base framework
Your foundations are what everything else is based on, so you need to make sure they’re solid before you start adding any fancy technology on top. Some key points of note include:
- Ensuring your systems are digital or able to be digitalised (e.g. warehouse stock, paperwork, communications)
- Preparing employee training to manage new technologies
- Informing customers and stakeholders of any changes in service
Once all the building blocks are in place, you’ll find it much easier to utilise new technologies in your logistics. Working with a third-party logistics provider can also offer great improvements, as they are likely to already have much of this framework in operation.
Integrate additional technologies
Finally, you can move on to the fun part – adding the modern innovations that are taking the industry by storm. Since you’ve already made a strategy, you can prioritise the technology that will be most profitable and beneficial for your business. And, since you have the framework in place, these systems will be easier to implement and start making use of.
As you progress with your strategy, more tools and technologies will open up or become available. As such, it is important to review and update your strategy as needed. However, once you begin this process, you will find a futureproofed and scalable solution that can adapt to your changing needs and growth.
The Future of Last-Mile Delivery in Logistics
Automated Delivery
Unmanned delivery methods e.g. through drones is still a long way off due to hazards to pedestrians and packages, limited capacity, and regulations; similar issues also arise with automated road vehicles.
As AI develops, these issues will be minimised, but they will need to reach safer-than-human levels before they can be properly considered, especially in busy urban centres.
Drop-Off Points
Drop-off points and pack stations will likely become more popular, as people and businesses focus more on sustainability and delivery times begin to stagnate due to the volumes of orders vastly outweighing the availability of transit and drivers.
Individual Requirements
Meeting individual needs will be easier, and more important, with things like developed AI chatbots taking centre stage – a practice that’s already in progress throughout many industries.
Third Party Providers
As technology progresses, it will become harder to ensure you’re keeping up to date with every innovation in logistics – without the help of a dedicated third-party partner. Luckily, we know the perfect choice to enhance your supply chain, now and into the future…
See how we’re helping companies like Lubin to bring their logistics into the future >
Streamline Your Last Mile with Allegro Logistics
Between sourcing new technologies, identifying your current logistics pain points, and implementing a strategy, there are many different steps to benefiting from top trends and last-mile innovations. However, they are more than worth pursuing, as the subsequent benefits should not be underestimated.
The easiest way to take advantage of the trends in last-mile delivery is to work with a trusted logistics partner that’s done it all before. At Allegro Logistics, we apply our expertise to every order, ensuring a timely and efficient last mile for your deliveries. Find out more about our e-commerce fulfilment services, or get in touch today!
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