Top 7 Last Mile Delivery Trends to look out for in 2023
– By Stuti Mehrotra, Technical Researcher at LogiNext
The COVID-19 pandemic has brought a major shift in consumer behavior. Gone are the days of taking a leisurely stroll in the crowded markets to shop one’s heart and wallet out. Online shopping has emerged as the end all and be all for most of our shopping needs and the trend is here to stay. While industries such as Travel and Tourism have suffered immense losses, eCommerce is having a field day. The global last mile delivery market is growing at an annual rate of 9% and will reach $66 billion in 2026.
With the deluge of orders pouring in, companies have had to ‘‘get with the times’’, as they say. Gah! Even as I type it, I can imagine an “OK Boomer!” coming my way from across the street. What’s even up with these Gen Z kids? I digress, that should probably be a conversation for later (you should read this if you’re in a lighter mood: Why Narcos had the best Route Optimization)
In all seriousness, it seems like there hasn’t ever been a stronger need for businesses to turn to technology as their ultimate savior. As Stewart Brand says,
Once a new technology rolls over you, if you’re not part of the steamroller, you’re part of the road.
In today’s era, companies doing last mile deliveries definitely need advanced logistics software to help them streamline, standardize, and automate their operations.
First things first- What is a last mile delivery?
The term ‘last mile delivery’ refers to the movement of an order from a warehouse or distribution center straight to its end destination, without stops at any intermediary hubs. To ensure that the last mile delivery is a pleasant experience for all the stakeholders—dispatchers, shippers, third-party logistics providers, delivery associates, and the end customers—companies need to be mindful of the ongoing trends in the marketplace.
Top Last Mile Delivery Trends That Are Here to Stay and Slay!
1. Adoption of Last Mile Delivery Technology to increase
A delivery management software that takes care of every aspect of the last mile delivery and takes your woes away. Right from order request management to optimized route planning to order tracking to feedback management—something that transforms your day-to-day operations into a well-oiled machine. More and more enterprises are adopting last mile delivery technology like LogiNext Mile.
2. Touch-me-not deliveries
The pandemic has forced us to keep one-on-one human interactions to a minimum if they are not virtual. Electronic proofs of delivery and digital payment gateways are the gateway out of this crisis. Also check out pandemic proof customer experience features that a route optimization software provides.
3. Fast and steady wins the race (yes, the adage changes for a last mile delivery!)
The moments are fleeting. We want what we want now—later is not an option! With the growing competitiveness in the marketplace around faster deliveries, companies need to ensure that the orders reach their rightful owners as soon as possible with no wiggle room.
4. A increasing use of hybrid model when it comes to delivery associate management
Is your own fleet of delivery associates sufficient or do you need to outsource your orders as well? A hybrid model of using one’s own team of delivery associates along with a freelance crew or third party logistics providers may be the solution to better manage the growing order volumes.
5. The road not taken- Advanced Route Optimization and Planning
Selecting the most optimized route for the last mile deliveries is key! Route optimization is quintessential and companies must ensure that their delivery associates have the best possible route planned out for them with considerations of traffic conditions, roadblocks, and such.
6. Customer comes first, a great customer experience is always a trend!
For a great customer experience, companies must make last mile delivery tracking an experience in itself. While several advanced logistics solutions offer real-time tracking capabilities, LogiNext elevates the tracking experience to a whole new level with opportunities to brand the tracking screen, add product promotions, feedback sections, and more. While customers enjoy the visibility into their order’s whereabouts, they can communicate with the delivery associates, update their availability and notification preferences, and have a top-notch experience.
7. Rise of dark stores and dark kitchens
Having a greater number of warehouses closer to the high order volume areas promise timely deliveries and happy customers. To cater to areas with limited serviceability, companies should look into hiring an outsourced fleet.
The online order volumes are only going to increase and the only way to keep up is to adapt. Survival of the fittest is not just a theory but a proven fact. I’d like to end this article with the note, “get with the times”, although I’d advise you to Google a Gen Z friendly alternative to this phrase.
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