Blog
Resources

Last Mile Revolution: Optimizing Delivery for Successful E-Commerce

Louise
December 17, 2024
-
5
minutes of reading

Révolution du Last Mile : Pour une livraison toujours plus efficace

Introduction

The last kilometer, or "last mile", is often the sinews of war in logistics. In fact, it accounts for a large proportion of the cost of the overall delivery cost envelope: this is the point at which pooling per parcel is at its lowest. This crucial stage, although short in distance, is therefore the most complex and costly in the logistics chain. Optimizing the last mile has become a strategic and differentiating challenge for e-retailers, who are looking for new offers and are increasingly demanding of their transport partners.

Find out why the last mile is so important. There's no shortage of innovative solutions to optimize it, and the promising future of these technologies is reinforced by the regulations that are regularly coming into force. We'll also look at the trends that will shape the future of delivery.

Why is the Last Mile so important?

  • Exorbitant costs: The last mile accounts for a significant proportion of logistics costs: this is due in particular to the multiplicity of deliveries over short distances, and the consequent non-mutualization of transport costs over these distances.
  • Customer satisfaction: Speed, reliability and transparency of delivery are key factors in customer satisfaction and loyalty. An unreliable delivery (missed or late) will undoubtedly damage the brand image of both the carrier and the e-tailer.
  • Urban complexity: The urban density of large cities, traffic & parking restrictions and the multiplication of delivery points make last-mile logistics particularly complex.
  • Environmental issues: As road transport is a major emitter of greenhouse gases, optimizing the last mile is essential to reduce the sector's carbon footprint. Carriers are increasingly required to use low-carbon solutions for the last mile, and legislation in many countries is taking this issue to heart.

Keys to optimizing the Last Mile

  • Artificial intelligence and algorithms: AI enables us to calculate optimized routes in real time, taking into account traffic conditions, time constraints and the specific features of each delivery.
  • Electric and alternative vehicles: Adopting fleets of electric vehicles reduces emissions and fuel costs, while improving the corporate image. Above all, they enable access to certain cities or neighborhoods while complying with new regulations. In addition to improving corporate image, soft mobility is also becoming increasingly popular, providing access to new routes (cycle paths, reserved lanes, etc.).
  • Collection points and connected lockers (the choice of French customers in 24% of cases): These solutions offer customers the possibility of collecting their parcels at their convenience. These are increasingly popular solutions, as noted in the ECN article in November 2024. They also reduce the number of unsuccessful home deliveries.
  • Drones and delivery robots: These technologies enable deliveries to be made to hard-to-reach areas. They also reduce costs: labor and fuel. However, the development of these solutions raises a number of issues (safety, regulation and social acceptability) that will gradually become part of everyday life.
  • Data and personalization: Data analysis enables us to better predict demand. By knowing customers' consumption habits, it is possible to offer personalized delivery slots.

Last Mile Risks and the Importance of Ad Valorem Insurance

Despite all possible optimizations, the last mile remains exposed to risks:

  • Package loss or theft: Packages can be lost or stolen at any time during the delivery process. In urban environments and during the last mile, this risk is heightened, and delivery trucks often attract the unwary.
  • Damage to the parcel: During the last mile, parcels are very often handled and returned. They also regularly change place as the route and delivery order are updated. This over-handling can unfortunately result in damage to the contents of the parcel.
  • Delivery delays: Unforeseen events (weather, traffic, etc.) can lead to delivery delays and customer dissatisfaction.

To protect themselves against these risks, many companies take out parcel insurance. However, traditional solutions can be complex and time-consuming. Claisy offers an innovative, fully digital approach that simplifies the management of risks associated with the transport of goods.

By choosing Claisy, e-tailers benefit from a genuine long-term partnership. We offer tailor-made solutions, adapted to their specific needs, with numerous connectors to market tools to integrate with their IT.

The future of the Last Mile: what are the trends?

  • Hyper-personalized delivery: Customers expect increasingly personalized delivery experiences, tailored to their needs and consumption habits.
  • Integrating Last Mile Solutions into Urban Ecosystems: Cities are becoming veritable laboratories for testing new delivery solutions, in collaboration with local players.
  • Development of Micro-Warehouse Networks: to reduce delivery distances and improve responsiveness.
  • Autonomous delivery: autonomous vehicles could revolutionize last-mile delivery in the years to come. Initial experiments are already underway in the USA and China, with deliveries made by both flying and ground drones.

Conclusion

The last mile is a major challenge for e-commerce and logistics companies. By investing in innovative solutions and adopting sustainable practices, it is possible to optimize costs, improve customer satisfaction and reduce environmental impact.

Don't hesitate to contact us if you would like to find out more about a particular aspect of this subject, such as :

  • The role of blockchain in securing deliveries
  • The challenges of rural delivery
  • The impact of regulations on the development of last mile solutions
  • Insurance and complementary Claisy solutions at the Last Mile