An in-depth explanation of the definition of the last mile, its importance, and the future brought about by technological innovation
The last mile is an important part of the logistics process that greatly affects customer satisfaction, and efficient operation is required. Here, we’ll take a closer look at the basic concepts of the last mile, its importance, the challenges and their solutions, strategies for success, and the future of technological innovation.
First, it has a direct impact on customer satisfaction. When customers buy products online, the speed and accuracy of delivery is a major factor. When the last mile goes smoothly and the product arrives on time, customer satisfaction is greatly improved. Conversely, late deliveries or damaged products can lead to increased customer dissatisfaction, which can lead to fewer repeat customers and negative reviews. Today’s consumers are more likely to demand immediacy, and delivering a quick last mile is key to building a company’s credibility.
Second, the last mile also has a significant impact on logistics costs. The last mile is often the most expensive of the overall logistics costs, and establishing an efficient delivery method is the key to cost reduction. In urban areas, traffic congestion and securing parking spaces are issues, while in rural areas, delivery distances are long. In order to solve these problems, it is important to optimize delivery routes and establish distribution bases for each region. The efficient last mile reduces delivery costs, resulting in higher profit margins.
In addition, the last mile has a significant impact on a company’s brand image. The response of the delivery staff and the condition of the product greatly affect the impression that customers have of the company. For example, when polite and fast deliveries are made, customers are satisfied with the quality of service of the company and their confidence increases. Conversely, a series of shoddy responses and delivery errors can negatively impact a company’s reputation. Therefore, quality control in the last mile is an essential element in protecting a company’s brand value.
The evolution of technology is also having a significant impact on the last mile. Today, many companies are adopting AI and automation technologies to improve the efficiency of their deliveries. For example, a variety of innovative methods are being tried, such as deliveries using drones and self-driving cars, and simplifying pickup using smart lockers. This is expected to reduce shipping costs and shorten delivery times.
Finally, the last mile also has an impact on the realization of sustainable logistics. Adopting eco-friendly shipping methods is also important for corporate social responsibility. For example, efforts to reduce environmental impact are required, such as promoting eco-friendly delivery using electric vehicles and bicycles, and using reusable packaging. By enabling sustainable logistics, companies can contribute to protecting the environment and gain the trust of their customers.
As you can see, the last mile plays a very important role as the linchpin of logistics, and its efficiency and improvements are directly linked to increased customer satisfaction, cost reduction, improved brand image, and sustainability. For companies, optimizing this area is a must-have to increase competitiveness, and it will continue to attract a lot of attention in the future.
The last mile is the most complex and expensive part of logistics. There are several challenges at this stage, each of which requires an effective solution. In the following, we will discuss some of the most common challenges and their solutions.
Delays in delivery times due to traffic congestion → AI-powered route calculation
First of all, there is the problem of traffic jams in urban areas. In big cities, delivery vehicles are often stuck in traffic jams, which makes it easy for delivery time delays to occur. As a solution to this problem, companies are implementing delivery route optimization techniques. It uses GPS and AI to calculate the optimal route in real time and make efficient deliveries while avoiding traffic jams. Deliveries using public transport and bicycles are also being considered. This minimizes the impact of congestion while ensuring faster delivery.
Driver shortage → Improvement of working environment and introduction of autonomous driving technology
Then there’s the problem of missing drivers. In Japan, the shortage of drivers is becoming more serious throughout the logistics industry. One of the reasons for the shortage of drivers is the harsh working conditions, including long working hours. The aging of drivers is also a problem, with a decline in the number of young drivers, resulting in an overall labor shortage. As a solution to this problem, it is necessary to improve working conditions. Specifically, it is necessary to shorten working hours and enhance welfare programs in order to create a comfortable working environment. The government is also taking measures. From April 1, 2024, the overtime limit will be applied to truck drivers. As with other companies, this regulation applies to the principle of 45 hours per month and 360 hours per year, and in special circumstances, the upper limit is set at 960 hours per year. The regulation is expected to improve the working conditions for drivers and encourage the entry of young people. It is also important to enhance education and training programs to promote youth employment. In addition, the introduction of autonomous driving technology can be used to supplement the labor shortage.
Improve delivery efficiency in rural areas → Establish a pick-up point
Another challenge is the low delivery efficiency in rural areas. In rural areas, shipping destinations are spread over a wide area, which reduces the scope that can be covered in a single delivery, reducing efficiency. This problem can be addressed by adding more regional distribution points and shortening delivery distances. In addition, there is an attempt to increase the coverage rate of the last mile by utilizing local residents and stores as collaborators. For example, you can use a local convenience store or post office as a pick-up base for efficient delivery.
What to do when you’re out of the office → Expand your pick-up options and improve your advance notification system
In addition, the absence of the delivery address is also a big challenge. The absence of the recipient will require redelivery, which will increase time and cost. As a solution to this problem, the use of delivery boxes and smart lockers is effective. Even if the recipient is not present, the product can be left at the designated location, eliminating the need for redelivery. You can also reduce your absentee rate by notifying your customers in advance of the delivery time and letting them choose a time when they can pick it up.
Consideration for the environment → Improve delivery efficiency and consider the introduction of electric vehicles
The environmental impact of the last mile is also an issue that cannot be ignored. With a large number of delivery vehicles coming and going in the city, CO2 emissions will increase, and there are concerns about the impact on the environment. In response to this, the introduction of electric vehicles and the promotion of bicycle delivery are effective. By adopting eco-friendly shipping methods, businesses can achieve sustainable logistics and contribute to protecting the environment.
Respond to customer needs → Utilize various systems for delivery management and inquiry response
Finally, it’s important to be flexible and responsive to customer needs. In order to accommodate different delivery times and methods for different customers, you need an advanced delivery management system. There is a need for technology to improve customer service, such as a system that allows customers to check the delivery status online in real time and a chatbot to respond to inquiries.
As you can see, there are many challenges in the last mile, but concrete solutions have been found for each of them. By addressing these challenges, logistics companies can provide more efficient and happier delivery services. It is expected that the last mile of improvement will continue in the future as technology evolves.
First, a customer-centric approach is key. Meeting customer needs and expectations is critical to last-mile success. Specifically, they are expected to offer flexibility in shipping times. Many consumers want to receive their goods at a certain time of day. Businesses can improve customer satisfaction by giving customers more time slots to choose from and offering real-time delivery tracking. You can also increase your receipt rate by notifying your delivery in advance. On the other hand, it is also important to take measures to reduce re-deliveries and promote efficient deliveries by gaining cooperation and understanding with customers. For example, drop-off significantly reduces the need for redelivery. Drop-off delivery is a delivery method in which a product is left at a location designated by the customer. This allows you to receive the goods even in the absence of the recipient, which reduces the number of re-deliveries and increases the efficiency of delivery. In addition, drop-off allows drivers to navigate the route efficiently, saving time and money.
Next, you need to optimize your delivery routes efficiently. In urban areas, traffic congestion and lack of parking spaces are problems, so AI-based route optimization technology is effective. AI analyzes real-time traffic information and suggests optimal delivery routes, reducing delivery times and costs. You can also divide your delivery zones into smaller zones and assign dedicated delivery staff to each zone for efficient delivery.
In addition, the use of technology is the key to success. By implementing the latest technology, you can improve efficiency in the last mile. For example, drones and self-driving cars can be useful, especially in congested urban areas. These technologies reduce manpower, allowing for faster deliveries and lower costs. They can also install smart lockers and offer in-store pick-up options to make it convenient for customers to pick up their products.
Sustainability is also an important part of the strategy. By adopting eco-friendly shipping methods, businesses can earn the trust of their customers while remaining socially responsible. Efforts to reduce environmental impact, such as deliveries using electric vehicles and bicycles, and the use of reusable packaging, are required. This allows companies to contribute to environmental protection and achieve sustainable logistics.
Finally, data analysis and the use of feedback are key to success. By collecting and analyzing data at each stage of the delivery process, you can identify bottlenecks and areas for improvement. It’s also important to actively incorporate customer feedback to help improve your service. For example, identifying the cause of delivery delays and taking appropriate measures can increase customer satisfaction.
Thus, a successful last-mile strategy includes a customer-centric approach, optimizing efficient delivery routes, leveraging the latest technology, working sustainably, and leveraging data analytics and feedback. By incorporating these factors holistically, companies can overcome last-mile challenges and take a big step toward business success.
First of all, drone delivery is attracting attention. Drones can make deliveries from the air and avoid traffic jams, especially in urban areas. This reduces delivery times and significantly improves efficiency. For example, Amazon is developing a drone delivery service called “Prime Air” that aims to deliver small packages in less than 30 minutes. Drone delivery has a low environmental impact and is expected to be a part of sustainable logistics.
Second, the adoption of self-driving cars is on the rise. Autonomous vehicles can make deliveries without the need for a driver, which contributes to reducing labor costs and improving delivery efficiency. Advances in autonomous driving technology will also improve safety and make it possible to handle long-distance deliveries. Many companies are conducting demonstration tests of self-driving cars, and preparations are underway for commercialization.
In addition, the use of artificial intelligence (AI) and big data optimizes the last mile. AI optimizes delivery routes and forecasts demand to ensure efficient deliveries. By leveraging big data, you can analyze historical delivery data, identify bottlenecks, and take corrective action. This increases the speed and accuracy of deliveries and increases customer satisfaction.
The spread of smart lockers is also one of the important technological innovations. Smart lockers are installed in designated locations and allow customers to pick up goods at their convenience. This eliminates the problem of re-delivery due to absenteeism and improves delivery efficiency. In addition, smart lockers have the advantage of being highly secure and can be used by customers with peace of mind.
Blockchain technology will also bring innovation to the last mile. Blockchain increases the transparency and traceability of the delivery process, reducing the risk of fraud and loss. For example, you can see in real-time where a product is in transit, providing accurate information to your customers. This will help you gain the trust of your customers.
Finally, the introduction of sustainable shipping methods will shape the last mile of the future. Eco-friendly deliveries using electric vehicles and bicycles, the use of reusable packaging, etc., allow companies to achieve sustainable logistics while contributing to the protection of the environment.
As you can see, technological innovation has the potential to have a profound impact on the last mile and significantly change its future. Drones, self-driving cars, AI, smart lockers, blockchain, and sustainable delivery methods are just a few of the technologies being used to make the last mile efficient and effective. With the advancement and adoption of these technologies, the last mile will evolve to be faster, more reliable, and more environmentally friendly.
The modern logistics industry is constantly changing, and the pursuit of efficiency is constantly required. At the heart of this is the Warehouse Execution System (WES). WES is revolutionizing the logistics industry by automating warehouse workflows and dramatically improving operational efficiency.
WCS is an integral part of modern logistics and warehousing operations, and its importance in the 3PL industry is growing every year. In this section, we will explain the basic definition of WCS, its benefits, use cases, and its impact on the 3PL industry.
Warehouse management systems support a series of logistics operations from inventory receipt to shipment and is the central system of warehouse operations that tracks the movement of inventory in real time.
International precision equipment transportation using multiple types of containers, balancing tight lead times during New Year holiday while still considering cost-effectiveness.
