Google Launches Last-Mile Fleet Solutions – Gamechanger?
Technology provider Google launched Last Mile Fleet Solution on March 17 to provide last-mile fleet operators with real-time routing and tracking capabilities.
Google notes in its announcement that "last mile fleet operators have to work harder to create better consumer experiences and improve their operations."
Among the capabilities of this latest solution are:
Address Capture addresses many common problems with delivery addressing, such as undeliverable addresses, inaccurate address entry from consumers, and the need for adjustments to point-of-delivery locations.
Route Optimization determines the optimal route order for drivers to complete their tasks on time.
Driver Routing & Navigation embeds the Google Maps experience into drivers' apps.
Shipment Tracking provides consumers with real-time day-of tracking of their delivery status for an improved user experience.
Fleet Performance provides fleet operations and support teams with visibility of the driver fleet, including real-time positions, ETAs, routes, and completed and upcoming tasks. It also provides insights into the fleet to optimize performance better.
What makes this different from other solutions in this space is that this is Google throwing its hefty weight into a part of the supply chain that's been long neglected by technology companies. It also shifts the last-mile technology competition to Google, Microsoft, and other large cloud-based API providers. But, more importantly, Google seems to understand the importance of consumer experience.
Where's my package?
A Pitney Bowes study forecasts ecommerce shipments to double by 2026 and that 90% of US consumers expect free two-to-three-day shipping.
However, it took a pandemic to 'discover' the last mile as many providers failed to deliver on time, and shipping costs increased.
Most consumers expect 'free' two to three-day delivery thanks to Amazon setting that expectation a few years ago. But consumers also want the ability to track their packages in real-time.
They also want to know when the package will be delivered at checkout time, not a day or so after the purchase, when the consumer receives an email from FedEx, UPS, or other last-mile providers.
Amazon sets these expectations at the checkout and provides tracking details that allow consumers to track the last leg of their deliveries by following their delivery on a map and showing how many more deliveries are before their own.
Similar capabilities are also available at FedEx and UPS, but they come at a price for their customers, the shippers. As such, the consumer expectation seems to be pushed to the back burner in terms of importance due to the need for shippers to manage shipping costs.
How much Google charges for these capabilities is unknown, and one must contact a Google salesperson for more information. But, if the price is right, Google's solutions can be a gamechanger and open up the last-mile market to more players by providing these tools to providers entering the market and the smaller, regional and local providers.
Microsoft and FedEx
While Google is throwing its tech weight into the last-mile space, Microsoft partnered with one last-mile provider. In a somewhat nebulous-sounding press release from 2020, Microsoft and FedEx announced a collaboration to "help transform commerce by combining the global digital and logistics network of FedEx with the power of Microsoft's intelligent cloud."
The first solution from the duo was FedEx Surround which allows businesses to provide near-real-time analytics into shipment tracking to the zip code, which, in turn, will provide "more precise logistics and inventory management."
In 2022, FedEx and Microsoft announced a cross-platform "logistics as a service" for retailers, merchants, and brands. According to the press release, Dynamics 365 Intelligent Order Management helps brands "access new information and capabilities to better fulfill, ship and service customer orders while easily integrating with their existing e-commerce platforms." The benefits of the press release notes are faster, more cost-effective delivery, near real-time delivery status communications, and convenient, frictionless returns with approximately 60,000 drop-off locations and printerless QR codes.
UPS
Meanwhile, UPS touts its On-Road Integrated Optimization and Navigation (ORION) platform, a proprietary technology that uses advanced algorithms, artificial intelligence, and machine learning introduced in 2012. It updates routes throughout the day based on traffic, delivery, and pickup commitments
According to UPS, since ORION's initial deployment, it has saved the company about 100 million miles and 10 million gallons of fuel per year. The company has also achieved other efficiencies thanks to this and other technologies it employed within its operations.
The customer experience
There are certainly other technologies deployed at FedEx and UPS besides what's been mentioned. Still, none seem to be noticeably focused on the customer experience.
53% of last-mile logistics operators said that ensuring the customer has a great experience is their top concern, according to a survey from route optimization technology provider DispatchTrack.
Indeed, while FedEx and UPS solutions may be too costly for most shippers to deploy, Google has an opportunity to take advantage and provide the right tools to providers to improve customer experiences in the last-mile.
-Cathy
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