Last mile delivery is one among the most dominant segment of supply chain. The functioning of supply chain cannot exist without proper functioning of last mile delivery. With the sudden increase in demand of ecommerce business and online shopping apps, a sudden spike is seen in the demand of last mile delivery services. As we know that supply chain is nearly incomplete without adequate delivery services of products. So, the last mile is one of the major term in search trends since online shopping came into play. Let us have a look at forces that are driving increase in demand for last mile logistics.
Pillars for Evolution of Last Mile Logistics
There are some verticals that are responsible of growth of last mile logistics. Let us have a look at the factors driving logistics-
Urbanization is one among the major factors contributing the growth of this industry. People in urban cities following urban culture have less time and busy schedules. They don’t get time to simply walk out to market for small things. They rather order essential as well as non-essential items online and would like to have door to door delivery as service. The development in infrastructure has also opened multiple horizons for this industry.
People are getting more interested for service rather than just product quality. Everyone wants world at their fingertips in this digital era. Like final user want products to be delivered at their doorstep earliest as possible. This demand of early delivery is a challenge as well as opportunity for logistics.
Well ecommerce is the most basic factor for growth of logistics. Supply chain has got a new face and collected new opportunities with the emerging ecommerce trends. We can see a sudden boost in the demand of last mile delivery services when the idea of online shopping was implemented. No ecommerce company can survive in this market without proper delivery system that will deliver final goods to end users.
Challenges in Last Mile Logistics
In every industry, some challenges are present. So, last mile industry is not an exception, it is also having a set of challenges. Here is a list of challenges
Customers will receive real-time alerts on the status of their shipment thanks to robust retail delivery tools. The customer, as well as the store manager, will monitor the shipment’s progress before it reaches the customer. The store manager can actually monitor last-mile deliveries with this feature.
Companies have had to deal with the high-cost problem in the past. However, with new and higher consumer expectations, the strain on your budget is much greater today. Even though many consumers are willing to pay for expedited delivery, most businesses find it difficult to do so without losing money. The presumption of same-day delivery has a significant financial effect.
Customers today have higher standards than ever before, and keeping them happy has been the driving force behind effective last-mile logistics. Customers expect fast delivery based on efficient processes as the environment has become increasingly on-demand. However, productivity entails much more than just getting things done quickly. Efficiency increases consumer satisfaction while lowering costs. One way to boost productivity is to ensure that delivery trucks and people are carrying the most weight possible while making last-mile deliveries.