How to make last-mile delivery more effective

 Insight 1

Fundamental buyer behavior has been altered as a result of the pandemic, creating shockwaves across the business landscape.

This is heightening the need to improve last-mile delivery (LMD).


 Insight 2

Companies must invest in their LMD capabilities to meet continuously evolving customer expectations.

Digital technologies can help companies seize opportunities to improve LMD.

 Insight 3

The stakes are high, as are expectations.

Consumers increasingly expect a frictionless delivery process, empowered by real-time traceability, visibility and constant communication. Here are the key emerging trends and investments that businesses should consider.

 Insight 4

The benefits are tangible. 

We have seen that retailers can effectively triple the inventory they ship while reducing costs by 10% to 30% by properly optimizing their resource planning and warehouse management systems.

businessman checking box product business online owner concept

From a strategic standpoint, this may require:

  • Growth strategy and competitive analysis
  • Service-level targets
  • SKU segmentation
  • Customer segmentation
  • Cost-to-serve optimization
  • Omnichannel supply chain and partnerships
Worker and businessman with digital tablet and clipboard in warehouse

In planning, this translates to:

  • Advanced forecasting capabilities and a demand-driven network with integrated business planning and systems
  • An omnichannel network design and multi-echelon inventory management
  • Agility to scale supply up or down based on market volatility
Industrial 4.0 , Augmented reality and smart logistic concept. Robot adviser with AR application for check order pick time in smart factory industry warehouse.

In warehousing, advanced capabilities include:

  • Automated decision making
  • Advanced picking automation and robotics to boost speed and performance
  • Micro-fulfillment centers near demand points to expedite delivery enabled by spoke-and-hub replenishment
  • Optimized warehouse management systems 
semi truck on road

In transportation, an optimized supply chain makes use of advanced technology to provide the best experience for customers. These capabilities include:

  • Frictionless order management
  • A network of owned or partner carriers with immediate availability
  • Optimized delivery routes
  • Supplier drop-ships
  • Crowdsourcing and specialized couriers
  • IoT-enabled tracking  

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