{"id":71787,"date":"2022-10-05T15:30:17","date_gmt":"2022-10-05T13:30:17","guid":{"rendered":"https:\/\/visionarymarketing.com\/?p=71787"},"modified":"2022-12-20T22:34:02","modified_gmt":"2022-12-20T21:34:02","slug":"last-mile-delivery-first-priority-for-companies","status":"publish","type":"post","link":"https:\/\/visionarymarketing.com\/en\/2022\/10\/05\/last-mile-delivery-first-priority-for-companies\/","title":{"rendered":"Last Mile Delivery: First Priority For Companies"},"content":{"rendered":"

Last mile<\/strong> delivery is the most strenuous<\/strong> and expensive<\/strong> part of the supply chain<\/strong> when delivering goods<\/strong>. Whether it\u2019s a commercial shipping<\/strong> such as UPS or Fedex, an internet enterprise<\/strong> like Amazon or Alibaba, or even a startup company<\/strong>, the last mile<\/strong> is what many<\/strong> companies<\/strong> have turned their attention<\/strong> towards.<\/em><\/p>\n

What is the last mile and why is this an issue? What effects is this having on companies and the environment? What are some solutions these companies are coming up with?<\/em><\/p>\n

In this article, we look into the problems,<\/strong> effects, and solutions<\/strong> to the last mile<\/strong> and how this bottleneck<\/strong> in the transportation sector<\/strong> is transforming<\/strong>.<\/em><\/p>\n

Last Mile Delivery: First Priority For Companies<\/strong><\/h2>\n
\"\"
Companies are facing major issues with the last mile of delivery<\/figcaption><\/figure>\n

<\/p>\n

What is the Last Mile?<\/strong><\/h3>\n
\"Amazon
Amazon’s last mile delivery tracking<\/a><\/figcaption><\/figure>\n

The last mile<\/strong>, or the final mile, is exactly<\/strong> what it sounds like!<\/p>\n

It is the last leg of\u00a0the delivery<\/strong> process from the distribution hub to the final destination<\/strong> of the package.<\/p>\n

Although this is the final<\/strong> part of delivery, this is also the first<\/strong> thing that consumers<\/strong> think of when describing at-home<\/strong> deliveries.<\/p>\n

You may have experienced<\/strong> this personally<\/strong> as you intently stare at your Amazon<\/strong> (NASDAQ: AMZN<\/a>) delivery status<\/strong>. Watching as your package<\/strong> slowly make its way to your house<\/strong> from down the block.<\/p>\n

Identifying the Struggles<\/strong><\/h3>\n

It\u2019s no secret that supply chain<\/strong> and logistics<\/strong> have been struggling<\/strong> to solve the matter of the last mile<\/strong> since the beginning of doorstep<\/strong> delivery. However, this issue has become highly stressed<\/strong> in the recent months as consumers demand<\/strong> quicker (or even same day<\/a><\/strong>) deliveries while remaining virtually free<\/strong>.<\/p>\n

As a result, companies<\/strong> and their drivers<\/strong> are struggling<\/strong> to keep up. In highly dense cities<\/strong>, one UPS states<\/a>:<\/p>\n

\n

On average, I drive around 125 miles a day and deliver 225 or more packages<\/p>\n<\/blockquote>\n

With the increasing age<\/strong> of the workforce<\/strong> and the stresses<\/strong> of increasing expectation<\/strong>, companies are finding it difficult<\/strong> to find drivers<\/strong> to fulfill their promotions<\/strong>.<\/p>\n

Technology<\/strong> is also hardly keeping up<\/strong>. According to the most recent 2020 ARTS release<\/a><\/p>\n

\n

The rise of Covid-19<\/strong> resulted in a 43%<\/strong> rise<\/strong> in e-commerce sales in 2020<\/p>\n<\/blockquote>\n

As a result, more places<\/strong> need to be reached in a shorter time.<\/strong> Though routing technologies<\/strong> aren\u2019t sending drivers on the most efficient<\/strong> paths.<\/p>\n

Not to mention the many issues<\/strong> faced with timely deliveries to the rural<\/strong> parts of the country<\/strong>.<\/p>\n

The Effects of the Last Mile\u00a0<\/span><\/strong><\/h3>\n

The last mile<\/strong> is not only the most difficult<\/strong> part of the delivery stage, but is also the most expensive<\/strong>. Statistically,<\/a><\/p>\n

\n

53% of the total shipping costs is spent on the last mile of delivery.<\/p>\n<\/blockquote>\n

For urban<\/strong> areas, this includes driver salaries<\/strong>, gas<\/strong> spent<\/strong> on slow speeds<\/strong> and constant idling<\/strong>, and failed delivery<\/a> attempts<\/strong>. In contrast, for rural<\/strong> areas this includes the many miles<\/strong> of driving for not<\/strong> very many deliveries<\/strong>.<\/p>\n

In turn, this usage of gas powered vehicles<\/strong> creates obvious negative effects<\/strong> on the environment<\/strong>.<\/p>\n

Technological Solutions<\/strong><\/h3>\n

There are many creative solutions<\/strong> being implemented<\/strong> to attempt to counteract<\/strong> the last mile<\/strong> issue. The two<\/strong> main categories include technological solutions<\/strong> and infrastructural solutions<\/strong>.<\/p>\n

The technological solutions<\/strong> are very creative<\/strong>. To combat the routing issues<\/strong> mentioned before, UPS<\/strong> (NYSE: UPS<\/a>) has began implementing Orion<\/strong><\/a>. Juan Perez<\/strong>, the UPS chief information<\/strong> and engineering officer<\/strong> says:<\/p>\n

\n

The new Dynamic Optimization component will improve the accuracy of UPS delivery time estimates and give our customers better visibility into their shipments<\/p>\n<\/blockquote>\n

This technology<\/strong> improves<\/strong> drivers routes in real-time<\/strong> throughout the day as traffic conditions<\/strong> alter and orders change<\/strong>.<\/p>\n

Amazon<\/strong> has also started implementing<\/strong> a creative solution<\/strong> to the rural last mile<\/strong>. They’ve announced<\/strong> the use of drones<\/a><\/strong> to not only solve environmental issues<\/strong>, but also the driver shortage<\/strong> issues as well.<\/p>\n

\"last
\u201cEmployees at Amazon Prime Air<\/strong> flight test facility in Oregon<\/strong>\u201d \u2014 source: Amazon<\/a><\/figcaption><\/figure>\n

In even more recent<\/strong> developments, Nuro<\/a><\/strong>\u00a0has developed<\/strong> a self-driving<\/strong> electric vehicle. They have begun working with Uber Eats<\/strong>, Domino\u2019s<\/strong>, and many<\/strong> other companies<\/strong> in order to improve<\/strong> the last mile for many food deliveries<\/strong>.<\/p>\n

Infrastructural Solutions<\/strong><\/h3>\n

Infrastructural solutions<\/strong> to the last mile utilize systems<\/strong> already in place. This improves<\/strong> deliveries to places outside normal routes<\/strong> and helps companies reach carbon neutral<\/strong> goals<\/strong> set for the near future<\/strong>.<\/p>\n

UPS<\/strong> offers careers<\/strong> for people to deliver<\/strong> using their personal vehicle<\/strong><\/a>.<\/p>\n

Uber Connect<\/strong><\/a> allows for same-day<\/strong> package deliveries with no postage required<\/strong>.<\/p>\n

Many companies<\/strong> are also beginning<\/strong> to connect<\/strong> with local<\/strong> or non-professional couriers<\/strong> in order to reduce<\/strong> delivery times by way of crowdsourced delivery<\/strong><\/a>.<\/p>\n

How does this help small businesses?<\/strong><\/h3>\n

This makes puts a lot<\/strong> of pressure<\/strong> on smalle<\/strong>r and medium<\/strong> sized companies<\/strong> to increase<\/strong> delivery times. To help with this situation, UPS<\/strong> has bought Ware2Go<\/a><\/strong>.\u00a0Ware2Go<\/strong> allows for companies to easily<\/strong> purchase warehousing space<\/strong> to expand<\/strong> their inventory<\/strong> in new cities on-demand<\/strong>.\u00a0<\/span><\/p>\n

In conjunction, UPS<\/strong> has also acquired Delivery Solutions<\/a><\/strong>.<\/p>\n

\n

By connecting to the Delivery Solutions technology platform, businesses can easily access a global ecosystem of same-day delivery companies, enabling retailers and platforms to meet the special delivery needs of their customers, while maintaining a total control over their e-commerce brand image<\/p>\n<\/blockquote>\n

So not only can a company expand<\/strong> their warehouse locations<\/strong>, but they can also access<\/strong><\/a> this developing world<\/strong> of same-day delivery<\/strong> and transparency<\/strong> with ease<\/strong>.<\/p>\n

Last Words for the Last Mile<\/strong><\/h3>\n

The last mile<\/strong> has been the first priority<\/strong> for many companies<\/strong> recently. As a result, technology<\/strong> and infrastructure solutions<\/strong> are being developed<\/strong> and improved<\/strong> in order to fulfill same-day<\/strong> delivery demands. These solutions<\/strong> are also keeping the environmental<\/strong> promises of these companies<\/strong> in mind.<\/p>\n

The world<\/strong> of the last mile<\/strong> allowing for merchants<\/strong> to deliver<\/strong> to their consumers quicker<\/strong> than ever before<\/strong>. At this rate, we can expect to receive goods<\/strong> from any<\/strong> company<\/strong> or e-commerce site<\/strong> in a matter of hours<\/strong>. Though, this begs the question<\/strong>, what does the future<\/strong> hold for the last mile<\/strong>?<\/p>\n","protected":false},"excerpt":{"rendered":"

Last mile delivery is the most strenuous and expensive part of the supply chain when delivering goods. Whether it\u2019s a commercial shipping such as UPS or Fedex, an internet enterprise like Amazon or Alibaba, or even a startup company, the last mile is what many companies have turned their attention towards. What is the last …<\/p>\n","protected":false},"author":113,"featured_media":71800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5076],"tags":[],"class_list":["post-71787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce"],"yoast_head":"\nLast Mile Delivery: First Priority For Companies - Logistics<\/title>\n<meta name=\"description\" content=\"Last mile delivery is the most strenuous and expensive part of the supply chain when delivering goods. 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