Top 5 Trends in Last Mile Logistics

Top 5 Trends in Last Mile Logistics

Last mile logistics refers to the final step of the delivery process where goods are transported from a distribution centre or facility to the end user. The deliveries can range from a few blocks to 400 or 800 kilometers. Here are the top 4 trends in last mile logistics, with technology playing a huge role.

Fulfillment times get faster.

Fulfillment timetables are changing due to consumers’ wants, and shippers need to move more products at a faster pace in order to keep up. Shipments that previously required 1-2 hours to process are now being forced into 3-minute intervals, if not even faster times. As a result, last mile logistics is finally in a position to become part of this push toward faster fulfillment. Consumers, especially millennials, are willing to pay a premium of up to 30% more for same-day delivery, reports McKinsey & Company.

Shippers are turning to smart tech to track shipments.

The increasing use of Uber-like apps indicates another trend in last-mile logistics – the use of smart technology for tracking purposes. Through the Internet of Things (IoT), smart technology and sensors, companies are able to track shipments in real-time. Consumers and shippers are both able to receive SMS alerts, email alerts and even Google notifications at each step of their shipment’s journey. This trend is expected to continue to grow as tech gets better and better.

Analytics will drive costs down.

Automated systems and smart technology generate a lot of information, which can have another purpose when applied through analytics. Analytics allows supply chain entities to isolate the cost-impacting factors across all shipments. Although small changes may not have a major impact on initial costs, data analytics provide a means on pushing those costs to their limits. As a result, the overall costs of last mile logistics can be pushed down even further, which would encourage more consumers to make use of the same-day delivery and faster delivery options.

Autonomous vehicles, drones and robotic deliveries will become more important.

AV’s, also known as self-driving vehicles, will have a big impact on last mile logistics in the near future. Self-driving vehicles, robots and drones will become key to increasing last mile delivery options while still maintaining high reliability and same-day delivery in both rural and urban areas.

Exciting things are happening in last mile logistics and the level of technology leveraged to push the frontiers of last mile logistics and same-day delivery continues to grow in scope and complexity. Make sure your business is keeping up! Visit our website to find out more about our technology and what it can do for your business: www.centralstation.co.za

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