Solving the last mile delivery challenge by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

  1. Crowdsourcing

This model allows retailers and logistics partners to connect with local couriers who use their own transportation to make deliveries. In this gig economy, crowdsourcing is a great way to ensure customers get faster delivery and it also eliminates the possibility of repeat attempt deliveries by providing the option of on-demand and scheduled deliveries to customers.

  1. Brick-and-Mortar Distribution Centers

Some retailers are using their storefront as a solution to the quick delivery problem. They have transformed their stores into distribution centers so that options such as same-day delivery are available to the customers.

  1. Smart Technology

The advancements in technology have inspired solutions that are cost-effective and convenient for both the retailer, as well as the customer. They make use of smart technology like sensors to provide retailers information regarding temperature variation in packaging, weather conditions for route planning, etc.

  1. Data Analytics

Advanced analytics (such as machine learning) help retailers optimize their last mile delivery operations. Data analytics can inform the company (or logistics partners) regarding customer-specific delivery constraints. Studying GPS traces along with relevant insights into the availability of local infrastructures such as roads and parking spaces can help make the entire process more efficient.

  1. Futuristic Delivery

Many startups, retailers and logistics services, are discovering new ways to tackle last mile delivery. Drone delivery, for instance, can not only shorten the time spent on delivery but also reduce the expensive human workforce. This workforce can then be directed towards more complex tasks. Autonomous self-driving vehicles with lockers are predicted to be the most dominant form of last mile delivery in the future.

Reference:

6 Last Mile Delivery Challenges and Solutions in Today’s Market. (2018, December 28). Retrieved from https://volttech.io/last-mile-delivery-market/.

 Questions:

  1. What are the different ways to tackle the last mile delivery problem?
  2. How do brick and mortar stores help in solving the last mile delivery problems?
  3. What are the futuristic delivery options to solve the last mile delivery problems?

 

Autonomous Vehicles transforming supply chains by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

Last Mile Delivery and Distribution Center Implications

The final mile of delivery is usually a bottleneck in the delivery process, both to suppliers and distributors alike. They result in delays frequently, even with the close proximity of the product to the end consumer. Thus, companies have begun experimenting with autonomous vehicles, that could deliver goods to the end costumer without the presence of a driver within the vehicle. Self-driven vehicles seem to affect coordination by decreasing costs and delays. They may to incredibly affect distribution and production centers as well. A common hone has been to construct these in cheaper areas, where good roads and human resources were available. With a move in customer prerequisites that presently call for speedier deliveries, these huge centers will have to be built closer to the end buyer. These centers will also have to be smaller in size, since companies want to be present near the end consumer at various places rather than being present in limited or central locations. This would increase the cost of real estate, warehouse costs and operational costs. However, these costs can be offset by the reduction in costs due to the implementation of these autonomous vehicles for the last mile deliveries. These vehicles can operate for longer hours, are less prone to accidents due to human errors, thus increasing operational efficiencies.

No drivers for long hauls

It is most likely that these autonomous vehicles will see their implementation in long distance travel first. Since driving on highways is more predictable than on city roads, it requires for lesser skills to navigate. Currently, a large chunk of the transportation costs arise from having to pay drivers. Also, drivers can only drive for a certain number of hours at a stretch and then need to rest. Thus, the vehicle lies idle for that duration. Hence, driverless vehicles would reduce these costs and improve efficiencies.

Corporations are also looking into “platooning”,  in which a group of trucks would travel together over long distances.  The lead vehicle would fix a speed and direction and the following vehicles would just have to follow it.During the last leg of the travel, or the last miles, these vehicles would go in their separate directions respectively. This would not only reduce the costs of having drivers, but also reduce the risk accidents and fuel costs.

Reference:

Impact of Autonomous Vehicles in Your Supply Chain – Bâton Global. (n.d.). Retrieved from https://www.batonglobal.com/post/impact-of-autonomous-vehicles-in-your-supply-chain.

Questions:

  1. How will autonomous vehicles change supply chain as we know?
  2. How will driverless vehicles solve the last mile delivery issue?
  3. How can driverless vehicles be used to reduce transportation costs?