With the continuous innovation of technology, the last-mile delivery landscape is also changing quickly.
It became more agile and improved to meet changing customer expectations.
Some trucking companies also grow from simple deliverers into innovators. They enhance last-mile
efficiency. There is a tough competition in the market, so it is important to develop more innovative
solutions to make the best of the business operations. Technology continues to evolve, so there are
more opportunities for businesses to be more successful. The following are some of the technologically
driven trends that reshape the last-mile delivery.
With the use of live tracking technology, better insights about the steps in delivery can be provided. It is
also beneficial for trucking companies to determine potential issues and solve it before it escalates. It
results to lower costs and more streamlined deliveries. With that, the business can attain its goals and
missions by increasing its performance. There is also less disappointment since there will be no
problems during the operation.
On-the-go traceability is also helpful for customers since they can have access to accurate information
about the delivery status. With that, there is no confusion and other further problems. Customers can
also decide on their specific needs. So, they can receive the highest satisfaction that they need and
On-demand Delivery Platforms
On-demand delivery platforms connect trucking companies with shippers. It provides an excellent way
of communication for successful transactions. The goal is to have shipments delivered in a city, a specific
time slot with minimum concern. It is easy for a small business owner, user-consumer, and big
corporations to plug and play. These new platforms increase reach, lower costs, and encourage
flexibility. It helps businesses to attain their goals without spending more money on their operations.
The expectations of customers on immediacy and choice have been raised by the service they get from
e-commerce sites. Nowadays, last mile delivery shippers expect same-day service, wherein about 23%
are prepared to pay extra for it. The new platforms deliver the immediacy and choice that meets the
expectations of customers. Since it helps customers to get their needs, businesses can also have the
chance to improve their brand recognition. Businesses can earn the trust and support of their potential
customers. It also helps to establish good relationships between customers and businesses.
Telematics is also a booming field that covers the wireless communications networks which connect
remote applications. For example, trucks can have a centralized system. They also bring end-to-end
connectivity to last mile delivery.
Telematics is also efficient in offering more visibility on fleet operations. One example of it is the way it
helps by influencing the behavior of the driver to lower the risk of accidents.
The On-demand (Gig) Economy
There are some instances that technology provides more than just innovation to the industry. It also has
a power to disrupt and offer new opportunities. Uber does not just provide new technology in the taxi
industry. Thus, it brought a whole new business model.
As Uber leads bringing contact drivers to make a fleet, some local trucking companies already adopt the
same solutions, which add flexibility to fleet size.
The new technologies being taken by the last mile delivery industry also give lots of valuable new
granular data. Predictive analytic tools can also harness data. It can also offer new opportunities to
enhance the route optimization.
Predictive analytics can also recognize patterns, and it helps to improve operations in the business. One
example is with forecasting future demand.
Hybrid Fleet Systems
The traditional business model that trucking companies own their entire fleet and afford full control for
their operations. However, it has a drawback of not being able to give more flexibility in the size of the
fleet. With that, it can result to problems as demand changes.
On the other hand, the hybrid fleet model, a mix of the trucking company’s own contractors, fleet,
freelance drivers, and third-party partners, offers this flexibility. But it also has a downside, which is a
difficulty in the operations control. This downside was addressed by the advent of centralized hybrid
fleet management systems. The systems offer trucking companies with control and flexibility.
This approach is a great example of the present emerging supply chain concept, the control tower. With
this concept, a centralized hub integrates real-time data from disparate sources. It also harnesses to
improve supply chain operations.
Digitizing the supply chain is important to lower the costs, improve agility as well as enhance the
business performance. Last mile delivery is one link in the supply that already improves into its
Those trucking companies who understand the opportunities that new technologies provide and who
adapt to the new environment will thrive. To sum it up, technology plays a significant role in enhancing the operations of the business.