Show sources information Mishra and Balsara (2020) have pointed out that the Covid-19 related lockout has brought everyday life to a halt and disrupted all the economic activities. If you have ever driven through a big city, you know that the roads are narrow, traffic is a nightmare, and parking is near impossible. As we mentioned earlier, many businesses are also relying on costly ad hoc vehicle acquisitions. In 2022, Nuro debuted its third-generation autonomous, zero-occupancy delivery vehicle. EVs, on the other hand, do not yet yield significant cost savings. As a result, such factors are expected to support autonomous technology deployment in the last mile distribution phase. The following steps are adopted (Vaishnavi et al. EVs work well for last mile delivery services since they avoid vehicle idle laws in certain cities, and can make use of stop-and-go city driving to recharge through regenerative braking. The TISM model is shown in Fig. The results indicate that types of goods, achieving routing efficiency and meeting fulfilment timeline are the key factors for last mile delivery projects during the time of Covid-19. Moving goods from one location to another has proved to be a more difficult logistical task than moving goods from one factory to another. People in remote areas also have difficulty obtaining everyday essential items due to widespread geography and severe weather conditions, making the process more complicated and expensive. PubMedGoogle Scholar. Narashimman (2020) has pointed out that the last-mile delivery has been taken to new heights, thanks to the same-day delivery. Last mile delivery - challenges for U.S. logistics providers 2020 Rather than duplicate last mile routing footprints across these two parcel networks [FedEx Express and Ground], LMO [last mile optimization] created the insight and processes to effectively handoff packages between networks and remove redundant routes, said Richard Smith, President, and CEO-elect of FedEx Express. Ann Oper Res 285(1):3566, RMI India (2020) Accelerating Bangalore S mobility transition- insights from the Bangalore urban mobility lab. If a product arrives late, damaged, or is never delivered, there is a good chance that the customer will shop with a competitor next time. The hypothetical mean value was set as 3.5. A proof of delivery is obtained, such as a signature or picture of the delivered order for order records. Without vehicles, customers cannot receive their orders, which is why a reliable fleet of transportation vehicles is a necessity for last mile delivery fulfillment. Instead of relying on humans, which takes a lot of time, effort, and results in costly errors for the brand, automated route planning tools allow the optimization of delivery scheduling by optimizing the service level and cost. The construction of a logistic supply chains last-mile is often the most costly section. Therefore, at least in cities, even significant improvements to total cost of ownership from electrification are not expected to improve delivery cost substantially. Currently, you are using a shared account. Int J Prod Res 59(11):33383359, Menon S, Suresh M (2019) Total interpretive structural modelling: evolution and applications. 2021a). Due to the first and second wave of Covid-19, lockdowns has been imposed in many countries. PDF A Strategic Model to Improve the Last Mile Delivery Performance in E While last mile delivery is the most expensive and time-consuming part of the shipping process, it is instrumental as it is the key to customers overall satisfaction. The inability to stick to predetermined timelines gets expensive for businesses. Statista. Last mile in supply chain management and transportation planning is the last leg of a journey comprising the movement of people and goods from a transportation hub to a final destination. Sustainability 2020, 12, 8769 3 of 20 A fleet manager or software will assign delivery routes based on orders. Factor 5 influencing F8: once the customer purchases the item/product and the last mile process is initiated, there are certain aspects that restrain the delivery to be successful. To help capitalize on the opportunity, the report identifies key strategies for transforming last-mile delivery practices. Buildings 9(5):117, Yu Z, Khan SAR (2021) Green supply chain network optimization under random and fuzzy environment. Factors of the last mile problem include short-delivery frame, same-day delivery, cost of fuel, last-minute route changes, failed deliveries, and customer expectations, just to name a few. (2020) also have studied the last mile delivery. Starting from the mid-1980's to now in the 21st century - the customer now has more faith on a Courier Company than on India Post. Accessed 25 Apr 2021, Jacobs K, Warner S, Rietra M, Mazza L, Buvat J, Khadikar A, Cherian S, Khemka Y (2019) The last-mile delivery challenge. PDF Urban Freight Last Mile Logistics Challenges and Opportunities to Accessed 25 Apr 2021, Hinzmann J, Bogatzki K (2020) Acceptance of autonomous delivery vehicles for last mile delivery in Germany: extension of the technology acceptance model to an autonomous delivery vehicles acceptance model. Amazon is not the only company that can succeed with last mile delivery. It has been used to develop a theoretical framework, through the principles established in the current literature and experts opinion (Corbin and Strauss 1990). Use Ask Statista Research Service. https://assets.kpmg/content/dam/kpmg/lk/pdf/last-mile-delivery-optimisation. In rural areas, delivery points along a particular route could be several miles apart, with only one or two packages getting dropped off at each one. new processes are put in place to ensure Last Mile Delivery Challenge is minimized to the maximum. The knowledge of advanced logistic and distribution is required because this area of knowledge assigns all the tasks in the project process. For many customers, home delivery has provided a solution to some of the challenges of Covid -19. (2020) have pointed out that the national lockdown has brought the challenges of reaching welfare recipients to the frontline. Download the PDF Last mile strategies Amazon has set the standard for last mile strategy, putting severe downward pressure on fulfillment service levels at much lower costs. Last Mile Delivery (LMD) In the literature, last mile delivery (LMD) refers to the activities required for physical delivery to the receiver's chosen nal destination [15]. https://www.dvara.com/research/wp-content/uploads/2020/05/Last-mile-Delivery-of-PM-Garib-Kalyan-Yojana-Benefits-during-the-COVID-19-Pandemic.pdf. The Indian consumer goods industry is in a state of flux. Int J Healthc Manag 14(1):290299, Suresh M, Sangeetha D, Kumaraswamy S (2021b) Modelling of factors influencing saving behaviour of women in India: an interpretive structural modelling. 2020; Sreenivasan and Suresh 2021). The MICMAC study includes the development of a graph that categorizes factors based on driving power and dependence. With the program Amazon partners with entrepreneurs interested in starting a logistics business (delivery team). Territory design for last-mile delivery faces the challenge that regions have to be determined without deterministic know ledge on the varying sets of customers that have to be serviced each da y. And with the growing ubiquitousness of free shipping, customers are less willing to foot a delivery fee, forcing retailers and logistics partners to shoulder the cost. You can solve this challenge with effective route optimization. But we are also seeing the beginning of series productions and scaling of technology deployment by several companies. The customers of e-commerce expect the same-day deliveries; thus, shorter delivery times must be given to ensure greater customer satisfaction. It brings products to the final station before being loaded onto vehicles for delivery. Many e-commerce companies and startups are now providing quicker delivery options like the same-day and instant deliveries due to improved fulfilment processes. To offer increased transparency into last-mile delivery, sign up for delivery management software that offers real-time status. Last mile delivery is a fast maturing, yet challenging component of the logistics and transportation space. PDF The last-mile challenge in Canada - It's time to jumpstart the But, last-mile delivery is the most expensive part of the supply chain. Businesses can compete by ensuring that their eCommerce operations and strategies are 100% customer-focused. A paid subscription is required for full access. Due to these relevancies, the volume of the order is getting unstable in delivery. In addition, EVs also emit no carbon emissions from the tailpipe and require less maintenance. Some businesses have implemented new social distancing protocols in warehouses, disinfected work environments or provided protective gear to protect their employees' wellbeing. Do you work in the transportation and logistics industry. Qual Sociol 13(1):321, DellAmico M, Hadjidimitriou S (2012) Innovative logistics model and containers solution for efficient last mile delivery. Home service providers must not only increase the pace of their last-mile operations but also ensure that each job is completed professionally and to the highest possible quality standards. The struggle to deliver a quality customer experience is one of the vital challenges requiring an efficient delivery framework. The comprehensive route optimization software must provide a number of features in last mile delivery. Companies like Amazon have created a culture of immediacy. A look at examples of IoT devices and their business applications in 2023, Best technology companies to work for, according to employees, Latest technology trends in 2022: Top 5 technologies digitally transforming industries, our research on digital transformation is exhaustive, Klarna heaps praise on AI and partnerships as it edges toward profit, Fintechs are planting the seeds for agricultural banking, where theres still plenty of room to grow. Factor 6 influencing F2: the rerouting and long travels for the delivery person make them even more exposed to the chances of getting infected with the corona virus. This project is to meet the demand for fast shipping among consumers, especially in the e-commerce, food and retail industries. Advances in materials research. As a result, businesses that digitally transform their route to market and develop robust positive capabilities, including e-commerce, would win in the long run. The propsed model would definitely improve the performance of the last mile delivery projects and would also help in attaining the goals of both delivery team and logistic organisations. Although the significance of the last mile in achieving progress cannot be overstated, the difficulties in making it as effective as possible are numerous (Macioszek 2017). volume15,pages 399412 (2022)Cite this article. https://www.capgemini.com/wp-content/uploads/2019/01/Report-Digital--Last-Mile-Delivery-Challenge1.pdf, Jena J, Sidharth S, Thakur LS, Pathak DK, Pandey VC (2017) Total interpretive structural modeling (TISM): approach and application. Small and Medium Enterprise (SMEs) would serve as micro-hubs for storing electric vehicles and products, allowing them to be used for final-mile delivery. .. Retailers, LM service providers and customers are the main players in the last-mile logistics. To run the t-test, Microsoft Excel was used. Interested in learning more? This makes deliveries a bit more time-consuming than they would be in the suburbs, which can lead to significant delays. Level I: level one has three factors, which are factor 3, 7 and factor 8. It allows for rerouting of your workforce even in the case of last-minute changes in plan. Traditional online categories like books, apparel and appliances have fueled the growth of incumbent online retailers like Amazon, Walmart and Alibaba. A: The best way to keep track of delivery vehicles while theyre in the field is to utilize connected vehicles that have built-in GPS hardware, and use a solution like TotalConnect to see all of your fleet data in a convenient dashboard. The last mile is a consumer-focused industry with a strong behavioral dimension. Lim and Srai (2018) have studied the last-mile distribution in e-commerce omni channel retailing. 2018), containerization of products (DellAmico and Hadjidimitriou 2012); analysis of transport operators needs (Pronello et al. This gives a clear picture to the management as to which areas need to be addressed as to maximize the performance of delivery projects. For beginners, route planning can be confusing and challenging, consisting of multiple variables that must be taken into account. (PDF) Last mile delivery: modes, efficiencies, sustainability, and trends Springer, Cham, pp 257265, Menon S, Suresh M (2021a) Factors influencing organizational agility in higher education. Int J Log Res Applhttps://doi.org/10.1080/13675567.2021.1879752, Department of Information Science and Engineering, Kumaraguru College of Technology, Coimbatore, India, Indian Institute of Management, Sirmaur, India, Amrita School of Business, Amrita Vishwa Vidyapeetham, Coimbatore, India, You can also search for this author in The closed-ended questionnaire has been developed based on pairwise comparisons of the identified major factors. Dubey et al. PDF An Overview of Courier Industry and Challenges in Last Mile Delivery This is where the last mile delivery officially starts. A: The cost of last mile delivery depends on the company, but on average, 53% of the total delivery cost is last mile. ACEB 14(1):2031, Sarma S (2020) Change is the only constant in last-mile delivery table of contents. JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup, Robots Speed Fulfillment to Help Apparel Company Scale for Growth, New Revenue for Cloud-Based TMS that Embeds Orderfuls Modern EDI Platform, Convenience Store Client Maximizes Profit and Improves Customer Service, A Digitally Native Footwear Brand Finds Rapid Fulfillment. Industry Insights With global eCommerce sales expected to surpass $6.5 billion by 2023, now is the time to establish, optimize, and solidify your last mile delivery processes. This increases precision, lowers fuel costs and reduces preparation and delivery time. The resultant, last mile delivery projects managers are facing many challenges to deliver huge quantities of products to their customers door step and adhering the Covid-19 precautionary and contactless delivery (Viu-Roig and Alvarez-Palau 2020). The last-mile delivery challenge | Research & insight | Capgemini Report shows that food and grocery retailers need to catch up with consumer demand for great last-mile delivery services Skip to Content Insights linkInsights As soon as this statistic is updated, you will immediately be notified via e-mail. Factor 10 influencing F2: the longer the product is not delivered to the customer, it stays exposed to the risk of getting contaminated with the coronavirus, which results in a health crisis. J Trans Supply Chain Manag 12(1):113, Wuni IY, Shen GQ (2019) Holistic review and conceptual framework for the drivers of offsite construction: a total interpretive structural modelling approach. Last mile, sometimes called final mile, is where the item is sent out from a local warehouse or fulfillment center for its final delivery to the customer. Abstract:Last-mile delivery (LMD) is essential in supply chains, and providers of logistics services are aware that they must adapt to changing customer and society expectations, competition chal- lenges, and modern technologies. Lack of visibility. Since the demand for critical goods is strong, warehouses and retailers are concentrating on grocery deliveries while companies in the last-mile segment are providing no-contact delivery options which include robots. Procedia Soc Behav Sci 48:15051514, Deloison T, Hannon E, Huber A, Heid B, Klink C, Sahay R, Christoph Wolff C (2020) The future of the last-mile ecosystem. How and where CPG customers start their shopping journey, Adobe, Google, and more add AI features as martech landscape prepares to be upended. Int J Oper Prod Manag 38(9):17351764, Macioszek E (2017) First and last mile deliveryproblems and issues. You can opt-out at any time. How last-mile delivery could be reshaped by technology | McKinsey statistic alerts) please log in with your personal account. Due to the Covid-19 outbreak, the speed of distribution is now critical in almost every vertical. In a product's journey, it is moved from the warehouse shelf, to the back of a truck, to the customer's doorstepthe final step of this process, known as the "last mile of delivery." The TISM is developed by Sushil (2012). One study finds that 56% of shoppers won't . In addition, shipping and logistics companies must allocate money for complex routes, failed deliveries, extra stops along the delivery route, drivers salaries, and fleet operation. The purpose of this paper is to identify, analyse and categorize the major factors that affect the last mile delivery projects in e-commerce, food sector, retail sector and so on using total nterpretive structural modelling approach during the Covid-19. As a Premium user you get access to background information and details about the release of this statistic. Glob J Flex Syst Manag 13(2):87106, Tiwapat N, Pomsing C, Jomthong P (2018) Last mile delivery: modes, efficiencies, sustainability, and trends. We are a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. 6 0 obj These shifts would bring CV and CEP players closer together. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp, Design, CMS, Hosting & Web Development :: ePublishing, Data Management (Big Data/IoT/Blockchain), Sustainability & Corporate Social Responsibility, How Companies Can Avoid Competing Solely on Price, Climate Change Threatens a World Without Doritos, Watch: Managing Supply Chains in the Face of Climate Disaster. Combined, these trends mandate immediate adoption of these new technologies by last-mile players. Customers would be attracted to and retained by a great last-mile delivery service that delights them. 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International Finance Corporation (IFC), 5. https://www.ifc.org/wps/wcm/connect/2d6ec419-41df-46c9-8b7b-96384cd36ab3/IFC-Covid19-Logistics-final_web.pdf?MOD=AJPERES&CVID=naqOED5. Beyond the technology advances that benefit CEP and CV players collectively, strong business partnerships can result in competitive advantages to individual players depending on the roles they play in the last-mile ecosystem. 30 No. Then the scheduled interviews are conducted with managers, supervisors, and delivery executives in the last mile logistics organizations. This study helps the managers to identify the key factors and to focus on these factors for the successful implementation of last mile delivery project. With global eCommerce sales expected to surpass $6.5 billion by 2023, now is the time to establish, optimize, and solidify your last mile delivery processes. Springer, Cham, pp 147154, Mangiaracina R, Perego A, Seghezzi A, Tumino A (2019) Innovative solutions to increase last-mile delivery efficiency in B2C e-commerce: a literature review. When a packaged good is in transit, unpredictable situations can disrupt last-mile delivery. Global Trans 2:202220, Lim SFWT, Srai JS (2018) Examining the anatomy of last-mile distribution in e-commerce omnichannel retailing: a supply network configuration approach. J Appl Res High Educ 13(2):504539, Menon S, Suresh M (2021c) Modelling the enablers of sustainability in higher education institutions. Constr Innov 20(4):587608, Suresh M, Roobaswathiny A, Lakshmi Priyadarsini S (2021a) A study on the factors that influence the agility of COVID-19 hospitals. Due to the difficult target service levels, small order dimensions, and high level of dispersion of destinations, the last-mile delivery is the least effective and most costly component of the delivery process. Max Kantzer, your host, is joined today by the co-hosts Horst Percival, Anthony Ambrosio, Dennis Wilkinson, and Keith Block. 2.1. (2021) studied the social sustainability implications in multi-tier supply chains. Watch: Is There a Right to Work Remotely? Agarwal N, Seth N (2021) Analysis of supply chain resilience barriers in Indian automotive company using total interpretive structural modelling. Finally, 20 respondents are interviewed based on their willingness and available time to participate in this study.
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