In the world of logistics, the last mile delivery system is the final stage of the transportation process, where the package is delivered to its destination, which is usually a residential or commercial address. Last mile delivery is considered the most critical and expensive part of the entire logistics chain, accounting for over 50% of the total logistics cost.
In this article, we'll go over the definition of tracking last mile delivery and the current trend of this system. We'll also look at the reason why last mile delivery system is the future of logistics.
Thus, whether you're a business owner or a customer, keep reading to learn more about this expanding industry!
The last mile delivery system is a complex process that involves several stakeholders, including retailers, logistics providers, transportation companies, and customers. The process requires a high level of coordination and collaboration between these stakeholders to ensure the timely and efficient delivery of packages.
Currently, the last mile delivery system faces several challenges, including traffic congestion, rising fuel costs, labor shortages, and environmental concerns. However, the emergence of new technologies and innovative solutions has provided a ray of hope for the future of last mile delivery.
The last mile delivery system has undergone significant changes in recent years due to the growth of e-commerce and the changing preferences of customers. In the past, most deliveries were made to businesses, but today, the majority of packages are delivered to residential addresses. According to a report by McKinsey, e-commerce sales in the US increased by 44% in 2020, and it is expected to reach $1.5 trillion by 2025.
The increase in e-commerce sales has led to a surge in last mile deliveries, which has put pressure on logistics providers to develop innovative solutions to cope with the growing demand. Currently, logistics providers are exploring several options to optimize the last mile delivery system, including the use of drones, autonomous vehicles, and crowdsourced delivery.
Drones have emerged as a promising technology for last mile delivery, especially in urban areas. In 2019, UPS received approval from the Federal Aviation Administration (FAA) to operate a drone airline, which would enable the company to deliver packages to remote areas and urban centers. Similarly, Amazon has been testing its Prime Air drone delivery service since 2013, and the company recently received approval from the FAA to operate its fleet of drones.
Autonomous vehicles have also gained traction as a potential solution for last mile delivery. In 2019, FedEx announced that it would partner with the autonomous vehicle manufacturer, Nuro, to test autonomous delivery vehicles in Houston, Texas. The partnership aimed to evaluate the feasibility of using autonomous vehicles for last mile deliveries and explore the potential benefits of the technology, including reduced delivery costs and improved efficiency.
Crowdsourced delivery is another innovative solution that has gained popularity in recent years. Crowdsourced delivery involves using independent contractors or freelancers to make deliveries on behalf of logistics providers. Companies such as Uber, Lyft, and Postmates have entered the crowdsourced delivery market, offering same-day or on-demand delivery services to customers.
The last mile delivery system is considered the future of logistics due to several reasons, including:
The growth of e-commerce has led to an increase in last mile deliveries, which has put pressure on logistics providers to develop innovative solutions to cope with the growing demand. With the increase in online shopping, more customers expect fast and reliable delivery, and the last mile delivery system is the key to meeting these expectations.
Customers today are more demanding than ever before, and they expect a seamless delivery experience. They want to track their packages in real-time, choose a delivery time that suits them, and receive their packages at their doorstep. The last mile delivery system plays a crucial role in meeting these expectations and providing a positive customer experience.