Last Mile delivery
Introduction:
For retailers, ensuring a smooth and satisfactory “last-mile” delivery – the final leg of the
journey where a product lands in a consumer’s hands – is now more significant than ever. A
superior last-mile experience engages and retains consumers, with our research
showing that three-quarters are willing to spend more if they are satisfied with the
delivery services.
While this is good news for retailers’ top line, today’s delivery models are not proving to
be profitable, with retailers absorbing a part of the cost of last-mile delivery. As more
consumers shift to online ordering and expect frequent deliveries, our research shows that
meeting demand and service-level expectations will hurt retailers’ profitability.
Organizations absorb some part of last-mile delivery cost, enough to erode
profits.
Global Market Research
● The Global Last Mile Delivery Market Size is valued at 151.87 billion in 2022
● Predicted to reach 357.45 billion by the year 2031
● The market is expected to register a CAGR of 10.17% over the forecasted period of
2023-2031.
● The market is fairly consolidated with a few large and medium-sized players accounting for
most of the market revenue share.
● Global last mile delivery market analysis along with current trends and future
estimations to depict imminent investment pockets.
● The overall last mile delivery market opportunity is determined by understanding
profitable trends to gain a stronger foothold.
The last-mile delivery market shows significant growth potential due to the increasing
consumer preference for specialized products. While large corporations like Amazon and
Flipkart already dominate the market, they still face certain challenges. This presents an
opportunity for smaller players to cater to a niche market segment that can afford
tailored solutions.
Moreover, the rise of online and social media marketing has enabled startups to
prioritize customer satisfaction, which, in turn, enhances their brand image. By
focusing on meeting the specific needs of customers and providing exceptional service,
these startups can differentiate themselves in the market and establish a strong reputation.
This emphasis on customer satisfaction not only drives their growth but also contributes to
the overall expansion of the last-mile delivery sector.
Indian Market :
● 74% of Indian businesses struggle with last-mile logistics,
says Locus Maturity Assessment 2023 : Economic times
[Link]
ile-logistics-says-locus-maturity-assessment-2023/articleshow/[Link]?utm_source=contentofint
erest&utm_medium=text&utm_campaign=cppst
● India's last mile delivery to become US$ 6 Billion profitable
market by 2024
[Link]
024
Scope of improvement, Software Features Include :
Providing real-time tracking information to customers is crucial for a positive delivery
experience. there can be gaps in accurate tracking updates, leading to uncertainty and
frustration for customers.
One potential solution to address the gap in last-mile delivery is to provide customers with
the option to select a general region or city where they want their product to be
delivered. However, instead of providing a specific delivery address during the initial order
placement, customers would receive a link on the day of delivery or a few hours before,
allowing them to add the precise location where they want the product to be delivered.
Implementing this approach would reduce the likelihood of failed delivery attempts, as
customers can provide accurate and up-to-date information on their preferred delivery
location. This solution enhances convenience and ensures a higher success rate in
delivering products to the desired destinations.
Market Restraints:
● Corruption Supply Chain Reducing the Reliability : When a product is ready
to be delivered from the distribution center to the end-user, the entire supply chain
involves different stages of inventories, starting from SKUs, stock assignment, and
dispatch to delivery.
● Lack of Transparency Taking Away the Trust from Consumers
Last Mile Delivery Solutions in India :
1. Multiple 3PL Management : advanced 3PL allocation engine can
help prioritize logistics partners based on delivery SLAs, geographical
strengths, service types, past performance, and cost structures. It can also
assist in managing NDR by validating unsuccessful deliveries with customers.
This engine enables retailers to provide various delivery options and coordinate
deliveries across multiple 3PLs.
AI-powered solutions, like Shipsy’s multiple 3PL management platform helps:
● Reduce last-mile delivery costs by 12%
● Increase deliveries per rider by 12%
● Increase in order pickup within 24 hrs by 30%
● Deliver on 30 mins SLA promise
● Increase in customer experience by 64%
● Boost on-time deliveries by 24%
2. Automated Route Planning and Optimization :
automatically generate efficient last-mile delivery routes while considering order
and vehicle constraints. Advanced routing solutions take into account factors such
as weight, volume, and promised SLAs for orders, as well as vehicle make,
capacity, distance, and delivery time slots when creating routes. These tools
also allocate the routes to drivers through a rider application, instantly and
automatically, once the routes are generated.
Shipsy leverages advanced AI algorithms for route planning and optimization that helps
businesses unlock:
● 31% Increase in vehicle capacity utilization
● 25% More deliveries per vehicle
● Up to 13% enhancement in delivery schedule adherence
● 12% Reduction in total transportation cost
3. Smart Driver Management :
Ensuring driver engagement and satisfaction is crucial for businesses in the retail and
eCommerce industries. To achieve this, they must digitize driver onboarding, document
verification, and performance management using user-friendly rider applications.
Incorporating gamification features in the app enables delivery managers to provide fair
compensation and recognize exceptional work with awards and incentives.
Shipsy’s smart rider management capabilities have helped businesses to unlock:
● Reduce fake delivery attempts by 23%
● Increase delivery success rate by 8%
4. Excellent Digital Customer Experiences
To enhance customer satisfaction, businesses should digitize their final interaction with
customers by utilizing advanced logistics management tools. These tools can significantly
enhance address accuracy and enable seamless communication of delivery time slots
and ETAs, saving time for both customers and delivery executives.
Real-time order tracking on a map and live updates through WhatsApp, SMS, and
email are some of the benefits offered by such tools. They also provide customers with
greater flexibility in selecting delivery time slots, changing addresses, and choosing
convenient payment options.
Shipsy’s AI-powered digital customer experience management capabilities have helped
businesses to:
● Reduce call center resources needed to ascertain location reduced by 85%
● Increase delivery success rate by 12% to reduce ND and RTO costs
5. Address Accuracy
An advanced geocoding engine can assist retailers and logistics service providers in
converting incorrect and fuzzy, text-based addresses into precise latitude and
longitude-based locations. Geographic Information System Mapping (GIS) data
is utilized to ensure address accuracy. With Shipsy’s geocoding engine, delivery
stakeholders can reduce order allocation time by up to 15%.
Last Mile Delivery Solutions Provider in India :
(Competitor study)
1. Shipsy : Advanced capabilities and diverse feature set help businesses to reduce
their operational costs, cut down inefficiencies and resource wastage, and leverage
smart algorithms to optimize their asset use. The company offers a bevy of modules
for logistics automation and supply chain management across multiple industries,
such as on-demand, quick commerce, retail, manufacturing, and CEP.
Key offerings:
● Automated label generation
● OMS/WMS/ERP/CRM integrations
● Intelligent 3PL management
● Configurable trigger and automated alerts for multiple stakeholders via multiple
channels
● TMS
● Automated return to origin (RTO) and non-delivery reasons (NDR) management
● Real-time shipment tracking
● Fleet, vehicle, and rider management
● Advanced data analytics and reporting with no-code data visualisation platform
2. OnFleet : OnFleet is a San Francisco-based company and a popular solution
for last mile delivery in India. The software offers a consolidated routing and dispatch
operations management dashboard, auto-order allocation, and proof of delivery
management.
Key offerings:
● Data analytics
● Driver chats
● Predictive ETAs
● Real-time tracking
3. Locus : The software offers diverse functionalities for delivery management,
routing and route planning, and real-time tracking. Businesses can manage orders,
order allocation, and vehicles, etc., and unlock higher efficiency in last mile.
Key offerings:
● Capacity management
● Route planning
● Control tower
● Driver companion app
4. LogiNext Mile : The software helps businesses automate their last mile with
smart process flows, such as automated and optimized pick-ups, planning,
delivery scheduling, routing, etc. Businesses can also leverage the multiple
integrations and manage their last mile efficiently.
Key offerings:
● Data analytics and reporting
● Automated order allocation
● Real-time notifications
● Customer-preferred delivery orchestration
5. Tookan
6. [Link]
7. Starship Technologies
8. Track-POD
9. FarEye
10. ClickPost
Improve Performance Monitoring and Service Delivery
AIOps can help predict performance issues and resource consumption. They focus on the
most likely cause of a subject by using probability analytics. Problems that cause incidents
can be identified utilizing clustering and anomaly detection features. Machine learning,
artificial intelligence, and automation may relieve the help desk crew by evaluating support
tickets, use patterns, and user interaction statistics.
PORTER
● Logistics Startup Porter Posts Loss Of INR 122 Cr In FY22, Revenue Grows
2.6X YoY
[Link]
● Porter launches intracity logistics services in Kochi
[Link]
● Porter completes divestment of Modern Trade business to COGOS
Technologies
[Link]
usiness-to-cogos-technologies-122072600624_1.html
SHADOWFAX
● Shadowfax joins ONDC to offer end-to-end logistics
[Link]
LICIOUS
● Licious names Ajit Narayanan as Chief Product and Technology Officer
[Link]
[Link]
Zypp Electric
● ZYPP ELECTRIC TO DEPLOY 2 LAKH EVS
[Link]
gy
● FROM B2C MOBILITY TO LAST-MILE DELIVERY SERVICE, HOW ZYPP
ELECTRIC FOUND ITS NICHE
[Link]
OTIPY
FRESH 2 HOME
● FreshToHome enables 29 Minute Delivery in Mumbai, Pune
[Link]
l
SOLUTION PROVIDERS
● Locus launches brand new enhancements to its Last Mile Logistics platform for retail
& courier verticals
[Link]
its-last-mile-logistics-platform-for-retail-amp-courier-verticals20230503123209/
● Locus Recognized as a Representative Vendor for the Third Consecutive Year in
Gartner® Market Guide for Last-Mile Delivery Technology Solutions
[Link]
he-third-consecutive-year-in-gartner-market-guide-for-last-mile-delivery-technology-solutions-
[Link]
Growth in indian last mile delivery
National Logistics Policy lead a new growth for last-mile
logistics :
NLP aims to address these challenges and bring down the cost of logistics from
the current 13-14% to align it with that in developed countries, which is around
8%
Challenges
Poor infrastructure
Traffic congestion
Lack of digital systems
Route planning.
Personalised vehicle insurance