Ecommerce continues to grow despite the rising cost of commodities in the Philippines. With just one click at the button, you can buy and sell almost everything online such as clothes, shoes, bags, food, and beauty products. Thanks to technology, you can do Ecommerce transactions whenever and wherever you are. A 2019 report reveals that over 70% of global Ecommerce activities are in the Asia-Pacific region. Meanwhile, the Philippines has the fastest Ecommerce growth at 24.1% among the five Southeast Asian countries included in a report in 2022. This ranking is predicted to remain the same until 2026.
The rising growth in Ecommerce sales is an opportunity for retailers to look for better ways to expedite their deliveries to meet customers’ demands. Last mile delivery is key for any business to succeed. As more consumers demand quick shipment of their orders, retailers have to ensure an efficient and fast delivery process until the items reach the doorstep of clients. This affects customer satisfaction which may lead to repeat orders or not. A trends report in 2022 shows that 61% of consumers would shift to another brand after a single bad customer experience. This is why last mile delivery is crucial to a business. If you are a retailer, you must look out for last mile logistics trends to keep your business growing in the coming years. Here are 6 last mile logistics trends that you must be able to track this 2024.
6 Last Mile Delivery Trends to Watch Out For
1. Sustainable Practices
Sustainability is one of the last mile logistics trends as many businesses are now embracing eco-friendly practices in their delivery process. Sustainability reduces ecological footprint in deliveries like carbon or greenhouse gas emissions. There are now electric vehicles, bicycle delivery services, parcel lockers and other green alternatives to protect the environment. More consumers favor businesses that have eco-friendly delivery options. A study shows that 44% of consumers are more likely to purchase from a brand which is committed to sustainability. If you are a retailer, you can win more customers by practicing sustainability in your last mile delivery.
2. Micro-Fulfillment Centers
Last mile logistics trends include having micro-fulfillment centers situated nearer the consumers. These are small, automated fulfillment facilities used by Ecommerce businesses where they can store their stocks to lessen cost and delivery times. Micro-fulfillment centers are convenient to use, especially in heavily congested areas. This helps retailers to fulfill orders more efficiently.
3. Smart Technology
Tracking the current location and status of a shipment is a concern for both Ecommerce retailers and clients. Smart technology is part of last mile logistics trends that can address real-time logistics visibility. As consumers, you do not want to wait forever for your package to arrive. Using smart technology can let you monitor the status of your package en route to your doorstep. GPS and RFID tags are used by shippers and logistics companies to track shipments in real-time. Accurate updates are also sent via SMS alerts and email notifications to provide customers with the necessary transparency.
4. Analytics Capabilities and Artificial Intelligence (AI)
One of the last mile logistics trends to watch out for is the continuous advancement of AI to analyze customers’ data and predict their preferences. It helps Ecommerce businesses to suit their delivery services according to the needs of each client. This leads to enhanced customer experience. AI can process large amounts of data which can be used by companies to improve their logistics operations and minimize costs. According to a Gartner study, 50% of supply chain organizations will invest in applications that support AI and advanced analytics tools by 2024.
5. Instant and Same-Day Delivery
Same-day and instant delivery services continue to be in demand. These last mile logistics trends reduce transit times as more customers want their orders to be delivered on the same day and within hours. More innovations in warehousing and inventory management are being developed to meet immediate delivery requirements of clients.
6. Omnichannel Retailing
Last mile logistics trends include Omnichannel retailing. This strategy provides consumers with a unified shopping experience that integrates all channels of their choice like physical stores, online stores, mobile apps, marketplaces, and catalogs. A customer can purchase a product online and pick it up from the store. Omnichannel saves time for an item to move across intermediaries and makes last mile delivery more efficient.
However, last mile delivery also encounters several challenges. The following are 6 common obstacles that arise for online retailers.
6 Last Mile Delivery Challenges
1. Expensive Delivery Costs – the high costs include expenses on fuel, labor, vehicle maintenance, and urban congestion.
2. Customer No-Shows – there are failed delivery attempts because some customers are not available to receive their deliveries at the scheduled time.
3. Traffic – maneuvering through congested roads results in delays and additional fuel consumption.
4. Environmental Concerns – minimizing the environmental impact of carbon emissions and finding eco-friendly solutions are challenges.
5. High Expectations from Customers – clients expect faster delivery times, transparent communication, and real-time tracking to know the status of their orders.
6. Accessibility – there are locations that are not easily reached for on-time deliveries like remote areas and inadequately mapped regions.
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There is an increased demand for fast and efficient last mile delivery services as Ecommerce continues to grow. Failure to meet these expectations has a negative impact on customer satisfaction. Embracing last mile logistics trends helps Ecommerce shippers meet the demands and keep up with the latest trends. They must understand the last mile delivery trends to adapt to the changes. This will help their businesses become more competitive in the industry. For businesses, the best solution to keep abreast of last mile logistics trends is to outsource to a third-party logistics (3PL) provider that can efficiently handle the challenges of last mile delivery.
Worklink Services, Inc. (WSI) has been a trusted logistics company since 1999. It offers fast and reliable trucking services to ensure that your shipment will be delivered safely and on-time to your desired destination. All it takes is for your cargo to get picked up by WSI’s first available driver until it reaches the receiver. Be assured that your shipment is in good hands. WSI provides the latest updates regarding the delivery of your cargo. Are you looking for a dependable logistics company to safely take your shipment to any destination around the Philippines? WSI can help.