Getting last mile delivery right has long been a challenge for retailers. In 2019, 97% of retail organisations felt their last-mile delivery models were not sustainable for full-scale implementation across all locations. Despite increasing demand from customers, companies were struggling to make the last mile profitable and efficient.
For a moment, the pandemic made things easier. At the beginning of the crisis, consumer tolerance for longer deliveries increased; but, as extremely high delivery demand continues to be normal, customers will expect brands to contract their delivery times. Retailers and logistics companies should still focus on innovation and aiming for one-day, if not same-day, deliveries in the near term.
The pressure will soon resume to reduce their delivery times, while also striking a delicate balance between cost and sustainability. Technology can play a huge role in optimising the last mile. Here, I set out some of the critical solutions that retailers and logistics companies should consider to help improve their last mile delivery strategies.