Winning in last-mile delivery has long been a critical piece of the logistics puzzle. But in recent years, increasingly high customer expectations have put new pressure on ecommerce businesses to find new ways to make deliveries faster and smoother than ever.
Thankfully, emerging technologies are giving retailers great opportunities to improve that customer experience and maintain a competitive edge. The problem? New tech can often come with a learning curve. To help you and your team better understand the options available and shed light on how they can benefit your business, we’re outlining five technologies that are reshaping last-mile delivery. Ready to bring your last-mile delivery processes up to speed?
Cross-docking: Streamlining operations and cutting costs
Cross-docking is becoming an increasingly popular strategy for logistics professionals looking to streamline operations and reduce costs. By eliminating the need for long-term storage, cross-docking allows goods to move directly from inbound to outbound transportation with minimal handling and delay. The benefits start when retailers eliminate the overhead associated with warehousing costs — but they certainly don’t end there. Businesses that take advantage of cross-docking can speed up delivery times, helping set themselves apart from the competition, increase customer satisfaction and reduce cart abandonment.
Drone and robot delivery: The future is at your doorstep
Logistics will always require human intervention, but the right kind of tech can help take over some of the heavy (or not-so-heavy) lifting — literally. Drone and robot deliveries are no longer futuristic concepts; they’re rapidly becoming a reality in last-mile logistics. Globally, the drone delivery market is expected to reach $4.3 billion by 2027, and robotic vehicle delivery could reach $1.8 billion by 2028.
While consumers have some concerns with privacy, security and package handling, positive attitudes toward autonomous deliveries are growing. College campuses nationwide are finding great success with autonomous vehicles used for popular food delivery services. Students say the convenience of autonomous deliveries helps them avoid standing in long lines or trekking across campus for a meal, letting them put more time toward studying. Meanwhile, senders using drones appreciate that airborne vehicles can conveniently bypass road traffic and reach more remote locations, making last-mile delivery even more efficient and accessible.
Artificial intelligence: Doing the digital heavy lifting
Making the most of drivers’ time on the road is one way to maximize your bottom line while ensuring customers receive their packages on time. The more packages a driver can deliver in a single run, the less wear and tear on the vehicle, and the more happy customers you can have in fewer miles. As a logistics tool, artificial intelligence (AI) helps teams analyze data and find the best options for batching and routing deliveries. AI doesn’t just account for where deliveries are headed, but also the best method for getting them there quickly. From traffic patterns to weather conditions, AI can analyze a variety of delivery optimization data quickly, all while accounting for customers’ requested delivery windows. Need to make changes to the route? Ask AI to recalculate, and save yourself the hassle.
Real-time tracking: Enhancing visibility and customer trust
Online shoppers don’t just want to get their orders fast — they want to know where their items are at every point from order to doorstep. As a business, real-time order tracking technology lets you give customers what they’re asking for, while simultaneously giving you a better grasp on your deliveries. For customers, watching the location of their orders and receiving photographic proof of delivery helps build trust, satisfaction and loyalty. For retailers, the same real-time data can help monitor drivers’ movements, identify potential issues and make adjustments on the fly — a win-win for businesses and their customers.
Electric vehicles: Driving toward a sustainable future
When it comes to business success, technology often focuses on speed, efficiency and growing the bottom line. In logistics, the results of emerging technologies also lead to sustainability and environmental benefits. Electric vehicles (EVs) are a perfect example. The last mile can account for as much as 50% of delivery-related CO2 emissions, but transitioning delivery fleets to EVs can help reduce your business’s carbon footprint while still meeting delivery demands. As battery and charging technology improves, EVs are becoming a more viable option for a greener last mile.
Staying ahead of the delivery technology curve
As the last-mile delivery landscape evolves, embracing new technologies isn’t just an option — it’s a necessity for logistics professionals looking to stay competitive. Cross-docking, drone and robot deliveries, AI-driven route optimization, real-time tracking and electric vehicles are no longer just buzzwords. They’re game-changing technologies that can streamline operations, reduce costs and improve customer satisfaction.
By staying ahead of these trends and integrating the right solutions, businesses can meet customers’ high expectations while carving out a reputation for efficient, quality delivery service.