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2024 Update Coming Soon Published- March 2022 Number Of Pages -107
The Indian last mile delivery market is on a surge, fueled by the booming e-commerce sector and a growing preference for online shopping. This segment is expected to witness significant growth between 2024 and 2030.
Several factors are contributing to this rise. Increased internet penetration and smartphone adoption in India are creating a vast pool of online consumers, particularly in tier 2 and tier 3 cities. This demand for local goods has spurred the creation of a hyperlocal delivery ecosystem, catering to quick deliveries within a specific area.
Traditional logistics providers, e-commerce giants with in-house delivery networks, and independent third-party logistics providers are all vying for a piece of the last-mile delivery pie. Mergers and acquisitions are becoming commonplace, with companies looking to expand their reach and service offerings.
Sustainability is a growing concern, and electric vehicles (EVs) are gaining traction in the last-mile delivery landscape. E-commerce companies and logistics providers are actively integrating electric three-wheelers and four-wheelers into their fleets to reduce emissions and operational costs.
Technological advancements are another key driver. Last-mile delivery companies are leveraging artificial intelligence (AI) for better route optimization and delivery scheduling. This improves efficiency, reduces delivery times, and enhances the overall customer experience.
However, challenges remain. Fragmented infrastructure, especially in rural areas, can lead to last-mile delivery bottlenecks. Traffic congestion in urban centers also adds to delivery delays. Cash on delivery (COD) remains a popular payment method, posing cash management challenges for logistics companies.
Despite these hurdles, the future of India’s last-mile delivery market appears bright. Increased government focus on infrastructure development, investment in logistics startups, and the adoption of innovative solutions are likely to propel the market forward in the coming years. This growth will benefit not only consumers but also businesses and the overall Indian economy.
Last-mile delivery refers to the final leg of the delivery process, where goods are transported from a distribution center or hub to the end destination, typically a residential address or a retail location. This phase of delivery is critical as it directly interfaces with the customer and plays a significant role in shaping their overall experience.
There are several types of last mile delivery methods, including traditional courier services, postal services, third-party logistics providers, and increasingly, emerging technologies such as drones, autonomous vehicles, and crowdshipping. Each method offers its own set of advantages and limitations.
Benefits of efficient last mile delivery include enhanced customer satisfaction through timely and convenient delivery options, improved operational efficiency and cost savings for businesses, and reduced environmental impact by optimizing delivery routes and utilizing eco-friendly transportation methods.
However, last mile delivery also comes with its share of risks and challenges. These include congestion and traffic delays, particularly in urban areas, which can lead to delays and increased delivery costs. Additionally, issues such as address accuracy, security concerns, and the risk of theft or damage to goods during transit pose significant challenges for logistics providers.
Moreover, the increasing demand for same-day or next-day delivery services adds pressure on logistics networks to meet customer expectations while maintaining profitability. Balancing speed, cost, and reliability in last-mile delivery operations requires careful planning, investment in technology, and collaboration across the supply chain.
Overall, addressing the complexities of last-mile delivery requires innovative solutions, such as route optimization software, smart delivery lockers, and real-time tracking systems, to streamline operations and meet the evolving needs of both businesses and consumers in an increasingly digital and competitive marketplace.
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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.
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.
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.
