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Published- March 2022 Number Of Pages -107
The last mile logistics stage of the delivery process is the most time consuming and expensive. One of the most difficult difficulties for most businesses is dealing with the competitiveness of E-commerce in the face of continually altering customer demand.
Furthermore, last mile delivery performance has become the most important component in the relationship between E-commerce shop and end consumer, as it may either develop or break the bond, which has a direct impact on the client’s reordering choice.
Customers now have a plethora of online purchasing choices to choose from. As a result, merchants put pressure on last-mile service providers to improve their performance.
The transfer of people and commodities from a transportation hub to a final destination in the house is referred to as the last mile (LM) in supply chain management and transportation planning [Wikipedia].
The cost per parcel in rural regions is significant. Retailers, LM service providers, and customers are the essential players in last mile logistics. Sometimes the store conducts the last mile delivery itself, while others outsource that stage to a third-party logistics provider (3PL).
The “Last mile” is a logistical concept that entails tailored methods to guarantee that final delivery is both comfortable and efficient for clients.
The most expensive and time-consuming element of the shipping process is last mile delivery. The “last mile” delivery, which accounts for 30% of overall E-logistics costs, became one of E-bottlenecks. commerce’s
In the previous several decades, India has seen a tremendous upheaval in the delivery environment. The increased need for local goods, combined with an unexpected surge in hyperlocal entrepreneurs, has given rise to a new delivery sector, the hyperlocal or last mile delivery ecosystem.
As part of their environmental goals, e-commerce corporations and third-party logistics providers are pledging to include electric cars in their fleets. Amazon India said in January 2020 that it will integrate 10,000 EVs (both 3Ws and 4Ws) in its delivery truck fleet by 2025.
The India Last Mile Delivery Market is served by traditional logistics service providers (LSPs), e-commerce store logistics providers, and captive logistical arms.
In recent years, dedicated LSPs for e-commerce transactions have entered the market, utilising a technology-centric approach that allows the firms to develop facilities and systems, and still provide affordable prices to customers.
Logistics is critical in e-commerce retail. There has been a substantial amount of investment, with foreign corporations viewing India as a promising market.
Furthermore, as the e-commerce retail industry transforms, with a greater proportion of demand projected from tier II and tier III cities and air to surface movement, current players are searching for novel concepts to improve end-to-end logistics.
Pack Stations or Parcel Lockers are a Western concept that is gaining traction in India. This kind of Last Mile delivery is more appropriate for B2C shipments because the cargo is intended for an individual client who is gone on business during the day.
The parcel station is kept in a strategic place in a densely populated region, is easily accessible 24 hours a day, and the consignee may come and receive the cargo on their own. For the convenience of customers, parcel lockers might be built in major metro stations or near shopping malls.
The India Last Mile Delivery Market can be segmented into the following categories for further analysis.
As of Feb 2021, around a hundred of them have already been deployed into service in seven cities in the country like New Delhi, Bengaluru and Hyderabad
Final mile delivery may also be thought of as the point at which the last mile meets the recipient. Last-mile delivery and last-mile transportation are inextricably linked and, as a result, are frequently studied in tandem. The majority of the funds are allocated to developing technologies and innovations, notably goods reception solutions.
The Internet of Things improves the availability of critical package information such as parcel contents, parcel position in the supply chain, and parcel arrival. It also allows for speedier information flow in the supply chain, which improves customer satisfaction.
It links numerous technical devices (such as cars, loading and unloading equipment, and so on) to one another via sensors mounted on these devices, allowing for real-time monitoring of vital parameters such as temperature, filing rate, and so on.
One of the primary areas of concentration in becoming a Digital India is the development of a new era addressing system for the country.
One of the most significant advancements is the digitization of addresses in order to synchronise physical addresses with current technologies. As a result, India has seen the emergence of a number of firms concentrating on address digitization.
This is predicted to provide a variety of benefits, including, but not limited to, reduced transit time, fewer delivery attempts, fewer customer-initiated returns, and enhanced last-mile delivery accuracy.
E-commerce and fast-moving consumer goods (FMCG) account for roughly 70% of the last-mile delivery business, which comprises the movement of products within 200 kilometers with a round trip time of fewer than 24 hours and a load weight of fewer than 5 tonnes.
Porter, LetsTransport, Blowhorn, and Lynk are the market leaders in the intra-city category.
Over the last year, e-commerce behemoths such as Amazon, Flipkart, and Reliance have collaborated with third-party players, SMEs, and neighborhood retailers, as well as employed hundreds of delivery executives to efficiently manage last-mile deliveries. The businesses have also planned strategies to improve their delivery capacities through contactless solutions.
IKEA plans to be completely electric in terms of transportation by 2030. Their Hyderabad shop was the first of its kind in India to use electric cars to carry small cargo to customers’ houses.
Flipkart has pledged to replace 40% of its delivery fleet with electric vehicles. For almost a year, companies such as Amazon, Big Basket, Grofers, and Swiggy have used electric cars for home deliveries.
Last-mile deliveries in India were launched by FM Logistics. After all, the company’s utilization of cutting-edge technologies and forward-thinking perspectives on sustainability have helped it establish an international delivery operation and a reputation for excellence. It reached its current position by implementing cutting-edge tactics to overcome significant logistical obstacles along every link in the supply chain.
They’re constantly seeking novel approaches to get over the major obstacles to more efficient logistics. To that purpose, FM Logistic has contributed to the spread of transportation pooling, in which freight from various upstream providers is loaded into a single cargo per distributor to speed up and greenify deliveries.
A one-roof fulfillment management concept also uses the same reasoning but with storage space. In addition, it advertises environmentally friendly co-packing options and has set a lofty goal of running carbon-neutral storage facilities.
These are a few strategies the organization has employed to quickly create more environmentally friendly supply chains. In order to scale its delivery operations effectively, quickly, and sustainably throughout the international markets where it operates, it has resorted to another ground-breaking idea, Urbantz’s last-mile delivery management software. Prior to the use of Urbantz, establishing routes and assigning last-mile delivery assignments required manual labor.
On the basis of the local knowledge of their transport managers and customers, they were manually processing route construction and optimization. However, this couldn’t be scaled. Just preparing the schedule for the day took several hours, and depending on the season, much longer.
It was a significant effort every day. Proof of delivery could only be delivered to customers, in the best case scenario, a day after their delivery was finished, demonstrating exactly how time-consuming the last-mile operation had grown.
Before scanning the appropriate paperwork, drivers had to finish their route, go back to the distribution center, and then return. However, the FM Logistics team has previously witnessed a convincing proof of concept for a smaller, more effective operation. one that quickly allocated and optimized routes while taking hundreds of criteria into account by use of strong algorithms.
This was due to the fact that the business has spent several years developing CityLogin as a dependable last-mile delivery brand. CityLogin was already utilizing Urbantz to manage its Spanish fleet of low-emission cars, which was created with the specific intention of providing environmentally friendly deliveries to companies and consumers in built-up regions.
The transport managers are freed to provide more value to clients and support to drivers because Urbantz handles all the labor-intensive tasks for them. FM Logistics was able to reap real rewards by using Urbantz across the entire firm, including a significant reduction in the amount of resources needed for route planning.
The capacity to improve delivery experiences for clients and receivers by giving transport managers proactive support through real-time, live order tracking across the field.