Expectations of Last-Mile Delivery Software
As E-commerce continues to grow at a rapid rate, customers are also demanding more affordable and faster deliveries. An AlixPartners survey revealed that the maximum time an average shopper will wait for their delivery is 4.5 days. This is down from 5.5 days that was acceptable in 2012.
As a result, businesses have begun to adopt innovative technologies to speed up deliveries and increase parcel capacity to please clients. It is one of the ways to retain clients seeing that 50% of shoppers will abandon an online purchase because of unsatisfactory delivery options according to a survey by Toluna survey tool. One of the ways that businesses are able to fulfill this is through the use of last-mile delivery software.
Simply put, last-mile delivery is movements of products from a warehouse or transportation hub to the client’s address/final destination. Last-mile delivery seeks to deliver goods within the shortest time possible while minimizing costs at the same time.
More companies are investing in software that makes last-mile delivery as efficient as possible. As time goes by, however, the scope of delivery is changing for the better. There are many changes you can expect to see with last-mile delivery in the coming years. Below we look at some of the expectations that businesspersons and clients have when it comes to last-minute delivery.
Swift Order Fulfilment
In the future, physical stores may not exist. Forbes acknowledges that there will be a huge decline with physical stores even though they might not die completely in the next 20 years. It is becoming easier for consumers to find all the products and services they need online. As online shopping becomes faster and easier, the demand for same-day or one-day delivery continues to grow. Rapid order fulfillment is especially important for meal and pharmaceutical deliveries.
Modern clients want to know what is happening to their orders at all times. This is from the time it leaves the warehouse to the second it arrives at their location. It is one of the reasons the delivery company utilizes a real-time delivery tracking system. Nowadays, you will not only know the route that the parcel is taking. Technology has made it possible for clients to track things like humidity and temperature levels.
This is helpful if the items on transit include pharmaceuticals, frozen foods, spirits, and other perishable items. Delivery companies also use smart technology to predict weather patterns. It helps them to package the products better so that they remain safe during all the delivery stages.
Fulfillment Centres in Major Cities
Having warehouses or fulfillment centers in many cities is one way of ensuring faster deliveries. This is one of the specialties that Amazon is working with to fulfill their 2-hour delivery promise. To gain a competitive edge with this giant, other firms have also started taking advantage of multiple warehouse spaces to get closer to their clients. This gives them easier access to high demand products enabling swift deliveries usually same or next-day delivery.
Self-Driving Delivery Cars and Drones
Some of the challenges that last-mile delivery faces include the availability of drivers, shifts, and labor costs. Autonomous delivery vehicles and drones can offer practical solutions to these problems. This may come sooner than expected as the government has announced that by 2021, drivels cars might be in full use on Britain roads. Drones and self-driving cars will not rely on human drivers and most importantly, they will make deliveries 24/7. This will, however, need complex route optimization to delivery tracking to set up algorithms that the drones and card will use to handle many deliveries and pick-ups.
Use of Robots
Delivery companies may soon start to use robots to handle deliveries. Just like the use of drones and self-driven vehicles, the machines can deliver multiple packages within a few mile radii. It is likely that the robots will have video cameras, and onboard GPS, and other features that will enable them to cross streets safely and detect obstacles to minimize accidents.
Customers will use their phones to unlock their packages from the robots. Starship Technologies is one of the companies that has launched a robot package delivery service in the UK. The robots will also help in the last mile delivery process by sorting delivery packages in vehicles or helping delivery persons with heavy packages.
Crowdsourcing Applications and Gig Economy
Venture capitalism has been focusing on urban logistics and last-mile delivery for some years now. In 2015, venture capital investments in logistics and supply chain start-ups quadrupled those in 2014.
Firms like Amazon, Deliver, Postmates and UberRUSH use independent delivers to offer delivery services. Such companies publish deliveries in their E-commerce delivery app for drivers to get alerts on available jobs. Although this is currently available in big cities it is expected that in the near future the geographical reach will widen.
Venture capitalists typically invest in companies that are based on technology and information. They mostly deal with organizations that use information and analysis to make their work easier. This is why there seems to be a boom in crowdsourcing applications and the gig economy.
Carries Will Double Up as Sellers
Retailers are in a better position nowadays to predict what customers may want even before they make an order thanks to Big Data. This has seen the concept of mobile warehousing come to life. Drivers get a chance to increase sales as they are delivering because fulfillers load inventory into their vehicles.
The same way Amazon shows shoppers an additional list of products that they may like, a courier may also bring in additional items that the customer may like. It could be things that the individual ordered in the past or may want or need by processing another order. This can work well in several industries including food, housewares, and fashion amongst others. In the future, experts predict that products in your home may be replenished automatically so that consumers do not stress about this says Natalie Berg a retail analyst.
Availability of More Options
The customer remains king more so with last-mile delivery. The guarantee customer satisfaction delivery companies must include more convenient options for customers. For now, a person can change their delivery location depending on where they are at a given time. More companies are also offering pay on delivery option so that clients only pay if they are happy with the goods in front of them.
In 2018, the global last-mile delivery market was valued at $1.99Bn. It is expected to reach $7.69Bn in 2027. It goes to show that this delivery revolution is unquestionable. We can’t wait to see the incredible changes that last-mile delivery will bring to the e-commerce industry in the near future.