Top 5 Last Mile Trends You Need to Know – August 2021
From the time a package leaves the sender to its final destination, each stage of the supply process should be considered. A disrupted supply chain is one of the top reasons for product waste, leaving businesses tens of thousands of dollars short annually. According to USDA Economic Research Service estimates, nearly 40% of food is wasted in North America annually due to issues such as poor storage and overstocking. Thanks to advancing technology in the industry, there have been several solutions put into place to mitigate this issue. Specifically, the most crucial part of the supply/cold chain is last mile delivery. This is when the goods from a transportation hub move to their final delivery destination. Real-time monitoring and tracking of these packages has become increasingly popular as companies like Amazon Prime and Instacart use delivery services for the same or next day delivery. Regardless of the product a customer receives, the goal of last mile delivery is to get the package to the recipient as quickly as possible.
According to Technavio, the last-mile delivery market size in North America is expected to grow at a CAGR rate of nearly 16%, with hardware projected to grow at a 14% CAGR rate, reaching $8.2 billion by 2026. As the popularity of real-time last mile delivery increases, here are five topics surrounding last mile that you need to know!
1. Insufficient Technical Personnel
Technology often advances faster than humans do. The knowledge we gain from new insights can be overwhelming due to the fact that so many people within the cold chain industry need to be updated on how, when, and where this new technology works. With new equipment and storage systems rapidly gaining popularity, those who are able to properly maintain and monitor technical issues may be sparse. Although preventative measures can be taken to reduce the risk of technical issues, there is still a global demand for more certified technical personnel in the cold chain industry. For example, in Mozambique, there is only one technician employee responsible for maintaining and repairing cold chain technical problems. This includes more than 100 health centers, 10-15 district-level refrigerators, and all cold storage facilities. Utilizing simple and reliable temperature monitoring systems can assist businesses in preventing technical issues that may not be easily solvable. Other solutions during time sensitive last mile delivery include careful consideration of overstocking packages to reduce potential damage.
2. Smart Technology
From groceries, to clothes, and pharmaceuticals, the delivery of goods to one’s doorstep is becoming the new normal. With such a high demand for efficient deliveries, it’s becoming more necessary to utilize smart technology within the supply chain. This is already useful for customers looking to track their parcels in transit, but this can also assist in preventing damaged products that are perishable. The ability to track temperature and humidity with electronic monitoring devices can assist in an unbroken supply chain, especially during last mile deliveries. Temperature and humidity sensitive items, such as pharmaceuticals and vaccines, can cost millions of dollars if not stored properly during transit. Electronic monitoring devices that use alerts to notify approved personnel can assist in preventing product waste. Additionally, using smart technology to track environmental factors such as weather and traffic may assist delivery drivers in their drop-off route. Whether you’re an individual customer or part of a large distributor of products, utilizing smart technology provides a sense of security that your items will be safe and readily available during expected delivery times.
3. Real Time Visibility
Customers across the globe have raised their expectations on deliveries since new technology has emerged in the industry. A miscalculated delivery date or damaged product can affect customer satisfaction, thus lowering the chance of the customer purchasing from that provider again. Not only do customers want to receive orders quickly, but there is a higher demand for the ability to track the shipment throughout its entire delivery process. Whether you’re someone eager to get their newest Amazon package, or a large food and beverage retailer, having a sense of security in your delivery items can ease your worry about damaged or late parcels. Real-time visibility not only improves the customer experience, but can assist your business. Fortunately, with advances in smartphone technology, this issue is already being addressed.
4. Cost
Requiring advanced technology or third party providers to assist in last mile delivery may be a supported solution, but cost management must be taken into consideration for those that use it. The size of the parcels, delivery truck, and expected delivery time all play a role in the cost of last mile delivery. Smaller delivery trucks and vans use less gas than larger trucks, but environmental factors such as weather and traffic can dictate the path of your package. Additionally, more stops for idling, delivery, and downtime, all need to be taken into consideration. Delivery drivers, most often from third party providers, also need to be paid for their services.
Although there are a number of costs associated with the efficiency of last mile delivery, customer satisfaction is a goal for all providers regardless of the industry they’re in. Looking at options on how to lower operating costs, such as utilizing hybrid vehicles for delivery, may assist in cost efficiencies.
5. Carbon Footprint
Concerns of environmental effects of different supply chain strategies are growing throughout the globe. In a report published by the World Economic Forum, it is estimated that due to a 36% increase in the number of delivery vehicles by 2030, this will lead to an emissions increase of 30%. Although no single entity can create sustainability within last mile delivery, using the correct strategies in all areas of the supply chain can gradually make changes. Utilizing local fulfillment centers can lower emissions caused by delivery trucks and vans. Tracking and analyzing your delivery data in addition to customer concerns or preferences can better inform you on where and how to cut down on carbon emissions. Electric cars and vehicles may not be the norm in the supply chain, but with the expense of last mile delivery, it may become a new normal. Companies like DHL say that electric vehicles make up nearly ⅕ of their fleet, with more to come.
The rapid acceleration of last mile delivery efficiencies is affecting businesses and individual consumers alike. The year 2020 brought new expectation for fast, real time delivery services. Like any other trend in the cold chain industry, there are both challenges and solutions to the different aspects of last mile delivery. There is no one solution, but when each individual in the delivery process is aware of how to mitigate and prevent concerns during last mile delivery, it will positively impact both consumers and providers.
Bluline Solutions solves cold chain temperature excursion threats by offering its clients cloud connected IoT wireless sensor technologies. Our broad range of active and passive logger devices and sensing options means you can accurately measure what matters and not settle for an approximate or close enough measurement.
Live monitor temperature, humidity or door opening events with Blulog RF and access to your data using our complimentary web dashboard console or mobile app. If you transport temperature sensitive products using a contracted carrier, Blulog NFC technology will record temperatures during transportation and provide any registered system user immediate notification of goods arriving at the point of arrival with a date, time, temperature and geolocation stamp. Both Blulog RF and NFC technologies provide temperature breach notifications, allow report generation, and provide long term subscription free cloud-based data storage.
Blulog is ideal for use in temperature controlled environments, multiple modes of transportation, and commercial retail refrigeration sites. Be confident that your products and perishable items are kept safe and secure with Blulog. Learn more at www.blulinesolutions.com