Urban logistics in e-commerce: the last mile challenge
4min read
30/07/2019
The spread of online shopping among people of all ages has had a significant impact on mobility in cities. Consumers are increasingly demanding and want their experience to be seamless, including, of course, the delivery of the package on time and in the right place. This is where urban or last mile logistics comes into play, i.e. the part of the supply chain that goes from the last distribution point until the item reaches the end customer.
Urban logistics in the age of e-commerce
The study Last Mile Delivery: What Shoppers Want and How to #SaveRetail, by Conveythe study highlights that:
- More than 73% of shoppers expect the delivery company to give them a delivery forecast of at least an exact delivery date and tomorrow or tomorrow afternoon.
- While 45% want to be assured of a specific time slot of a maximum of two hours.
These desires clash with the reality of an urban ecosystem riddled with obstacles for delivery drivers, with traffic jams, traffic restrictions, hard-to-reach locations and the pressure of having to meet draconian delivery times to achieve profitability levels.
Last Mile Challenges in Online Retailing
The Ultimate Guide to Last Mile & White Glove Logistics, by Cerasiswe want our small purchases to be delivered to our doorstep as quickly as possible (within a day or a few hours from the time of purchase) and at a time that suits us. How to combine this with:
- … the increasingly stringent traffic, parking and loading and unloading regulations set by local councils?
- … the enormous fuel costs of having delivery drivers on motorbikes, vans, etc., driving back and forth all day?
- … and with the consequent environmental pollution generated by the emissions of their vehicles?
It is therefore urgent to find imaginative solutions to provide a service that meets the expectations of customers, but without turning cities into small, unbreathable hells.
Solutions to optimise urban logistics
Among the proposals being considered by the sector are:
1.amazon-style ‘lockers’
This would involve setting up spaces with lockers where companies can deposit several orders at the same time, and users can pick up their products at the time they prefer.
2.pick-up points
These are becoming increasingly popular, whether they are physical shops of the brands themselves or establishments dedicated to other purposes, they are very useful for those who spend a lot of time away from home.
3.drones and robots
Although there is still a lot of technological development to be done, drones are emerging as a fast, autonomous and cheap solution for delivering light packages to hard-to-reach places.
4.transportation Management Systems (TMS)
A TMS is software capable of planning and modifying transport routes in real time to save time and money. With the help of big data, a TMS makes it possible to deal with unforeseen events, choose the clearest routes and establish the optimal delivery order to maximise the return on investment.
5.up-to-the-minute traceability
Calming users’ anxiety and improving their shopping experience is also possible through traceability apps, which inform them about where their orders are at all times.
6.alternative delivery vehicles
Hybrids, electric vehicles and even bicycles are environmentally friendly transport options that are more viable for delivery in certain areas.
how does packaging help to improve urban logistics?
It’s not just technology that helps to improve urban logistics: choosing the right packaging for e-commerce orders is equally crucial to succeed in the last mile. Etane Derhy, RAJA Group’s European Key Account Sales Director, points out that this “not only reduces logistics costs, but also saves time” in order preparation and delivery.
” Packaging optimisation is the path to profitable and sustainable last-mile logistics,” says Bernard de Paauw, Managing Director of Rajapack Spain, and among all possible measures, the fight against overpacking stands out: “Adapting the size of packages to the volume of their contents, with products such as variable-height boxes, or standardising order picking with solutions such as instantly inflatable air cushions are ideas that make life easier for delivery companies, so they can make the most of the space available in their vehicles,” Bernard De Paauw sums up.
Bernard de Paauw, Managing Director of Rajapack Spain
“Packaging optimisation is the way to cost-effective and sustainable last mile logistics”
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