Last Mile Retail Trends

Last Mile Retail Trends

Take a look at our latest blog which explores some of the trends and focus around The Last Mile.

What is the last Mile?

Last Mile delivery is defined as the movement of goods from a transportation hub to the final delivery destination. The final delivery destination is typically a personal residence. The focus of last mile logistics is to deliver items to the end user as fast as possible.

Why is the last Mile So Important?

Last Mile is typically viewed as the least efficient link in the supply chain. Last-mile warehouses facilitate the movement of goods in the supply chain to the final destination. Being closer to the consumer decreases supply-chain costs while minimizing the time to complete delivery.

What do the Stats Say?

Consumers expectations are increasing. According to same day delivery will receive a 25% market share by 2025 and up to 25% of consumers are willing to pay extra for same day delivery.*

Last Mile Best Practice. Some of the trends around Last Mile Best Practice include:

Faster Fulfillment

Consumers are expecting faster delivery and retailers are responding to try and ensure that their supply chains are as efficient as possible.

Putting the Customer in Control of Their Delivery Window

Its common sense that If a customer can update they will think about what is convenient to them and when they will in at home.

Regular communication

The more regular the communication from the point of order to final delivery will increase the chance of the customer being physically present to take the order.

Tracking & Visibility

The ability to track items through the entire delivery cycle is key and becoming more prevalent. The use of Smart Technology for tracking purposes. Through the Internet of Things (IoT), smart technology and sensors can successfully track shipments in real time with consumers and shippers can both receive SMS alerts and notifications.

The Use of Analytics will drive Last Mile Logistics Costs Down

As retailers use more and more automated systems and Smart Technology there will a rise in the use of analytics to isolate the costs and factors which impact shipment and to continually improve the process.

Delivery by Autonomous Driver, Drones & Robots

Not yet main stream but McKinsey envisions a future where autonomous vehicles and drones will deliver 78% of all items, with traditional delivery accounting for only 20% and another 2% by bike couriers**