Av Trimble smartdelivery | Article | November 16, 2018

How to Introduce Disruptive Technology in Last Mile Delivery?

State-of-the-art solutions in logistics are underway to evolve the delivery of goods, particularly last mile delivery. Along with consumers, now retailers have also started to become more demanding. In addition to that, instant deliveries and user experience are gradually turning into critical aspects within the market. All this is mainly coinciding with an incursion of technologically advanced startups within this domain, which are presenting innovative value-added services that have never been experienced before.

According to current studies, approximately 40 % of the total cost of logistics is spent on last mile delivery. This has eventually led logistics and transportations businesses to consider disruptive technologies as an alternative medium to take care of the increasing challenges associated with last mile delivery. Integration of connected devices, advanced stock management systems, machine learning, data analytics, and further interrelated disruptive technologies are turning into crucial elements that drive last mile delivery.

One of the three parties who usually arrange last mile delivery can be a supplier, an intermediary, or a consumer. As of today, they have the choice to make use of conventional mediums of delivery or applications that are driven by innovative algorithm and analytics. In the future, drones, driverless delivery vehicles, and delivery robots will become challenging new choices in different markets and geographic settings. Considering the little hurdles in introducing innovative services based on advanced algorithm and analytics, they will possibly continue to develop while catering to different requirements of consumers. Due to the cost-effectiveness of some of these models still being uncertain, inventive businesses that are capable of minimizing the structure of cost with the help of fresh models will be able to accomplish ultimate advantage.

At this point, innovative algorithms and data analytics have been the main facilitator of introducing disruptive technologies in last mile delivery. Previously, in order to enter the delivery market, substantial investment in terms labor and capital was required. However, today you can make your mark in the delivery market without them. Uber, Postmates, and Instacart are major examples of such startups that only require an app to force their way into the industry by connecting the buyer with the delivery person. Their overall operating cost has been considerably low and at the same time, they are capable of offering more flexible and on-demand delivery of services to their users.

Future disruptive technologies in last mile delivery are being tested by presently established organizations with a substantial market presence such as Google and Amazon. They are analyzing futuristic solutions for drone delivery, delivery robots and driverless delivery vehicles for effective operability and testing their capability to meet consumer expectations pertinent to last mile delivery. While these technologies are anticipated to alter the competitive environment, they also might have the potential to revolutionize the delivery systems of postal services and their way of serving clients.

Developing an e-commerce market along with seamlessly connected technology will empower service providers to offer real-time delivery of packages. Smart apps and solutions based on crowdsourced platforms are the present disruptive technologies in last mile delivery.