US LAST MILE DELIVERY MARKET
Last mile delivery is the transfer of orders from a warehouse, shop, restaurant, or any distribution centre to the final destination, usually a customer’s doorstep. This involves different transportation options — by foot, bike, van or eventually even an unmanned vehicle. But no matter the mode, the final leg of a product’s journey still remains the most costly, complex, and critical step of the entire retail supply chain.
The growing demand for eCommerce and rising consumer expectations have placed additional pressure on retailers to expedite delivery without increasing costs. This has brought renewed attention to order fulfilment, especially last mile delivery.
Last mile delivery is an integral component of the order fulfilment process but is often the most challenging to coordinate for a number of reasons. First and foremost, last mile delivery is expensive. Between fuel, vehicle, and labour costs — as well as associated fulfilment and technology costs — the price of last mile delivery really adds up.
In this digital era surrounded by modern smart devices and plenty of delivery businesses, customers are becoming more and more demanding. Their demands might include real-time tracking of orders, free package delivery and easy access through different gestures.
US LAST MILE DELIVERY MARKET DYNAMICS
Nowadays, the idea of last-mile delivery has transformed into innovative smart solutions where products are delivered with the help of drones, self-driving cars, robots, electric vehicles, etc. When we focus on the last mile delivery software companies in the USA, we can point out the best companies that have completely changed the pattern of logistics business to ensure ultimate customer experience and rapid deliveries.
New entrants are redefining the last-mile landscape that has traditionally been the realm of FedEx, UPS, and the US Postal Service (USPS). The booming growth in e-commerce and the high costs associated with the last mile are attracting new participants to a market struggling to keep pace with consumer expectations.
When the major stakeholder companies are not ready to invest a heft amount in mobilising the required infrastructure throughout the US last mile delivery market, The third part logistics came into rescue with the market which operates as per the major stakeholders last mile requirements.
3PL or third-party logistics partners provide warehousing and transportation services that can be scaled and customized depending on your requirements. These days, they are also offering last mile delivery services as well, competing with shipping carriers and outperforming them in terms of flexibility.
Typically, 3PL partners heavily rely on technology solutions to improve efficiency and provide routing visibility. But to reap all the benefits the transportation management systems, warehouse management systems, or other systems used by a 3PL are easily integrated with the retail software.
A few of these integration-based services being provided to the major e-commerce and other stakeholders includes the services from the FedEx logistics services. FedEx has long been a pioneer in sensor-based logistics, providing advanced tracking of urgent and high value shipments for over a decade through its proprietary SenseAware portfolio. SenseAware ID is the latest innovation in FedEx sensor technology, designed to make sensor-based logistics more accessible to FedEx customers.
US LAST MILE DELIVERY MARKET SEGMENTATION
The US Last Mile Delivery market can be segmented into following categories for further analysis.
By Technology Type
- Autonomous Drive Technology
- Robotics Integration
- Droid Based Integration
- Smart Door lock System
- Trunk Delivery
- Parcel Box System
- Parcel Locker System
By Regional Classification
- Western Region – USA
- Mid-West Region – USA
- Northeast Region – USA
- Southern Region – USA
RECENT TRENDS IN US LAST MILE DELIVERY MARKET
The Most recent technological integration within the US Last Mile Market has been through the emphasised manner of operating the requisite and technological performance of the Last Mile technology being implemented in the organizations.
The Application based integral approach has been one of the most developed platform-based usage of technology to have better inference on the delivery driven through the last mile services. A complete software suite to run last mile delivery typically consists of a mobile app for drivers, a fleet management system for dispatchers, and a tracking and notification mechanism (usually, a free mobile app) for customers.
The route optimization algorithm identifies the fastest and most cost-effective, multi-stop routes for drivers, considering numerous factors — such as traffic, travel distances, and time windows offered to customers. Advanced solutions may accommodate predefined routes to real-time changes.
The integrated approach of the SaaS platform offers an API and detailed developer documentation to integrate with almost every platform in the customer’s ecosystem. Due to the modular structure, users can build a customized last mile delivery solution meeting their particular requirements.
From using GPS and RFID tags to track the movement of shipments in real time to embedding IoT-enabled sensors in packages in order to monitor their temperature and humidity, smart technology has enabled retailers to provide their customer base with the transparency and traceability they desire.
Besides the high cost and complexity, the final stage is associated with rising expectations for timeframes. Fast, same-day delivery has become a key to customer satisfaction, with Amazon leading the pack and setting hard-to-beat standards.
Tampa-based start-up Hitch gives consumers, “the choice to be Shippers, Travelers, or both.” The platform touts tapping into people power by pairing up shippers (the people placing the orders) with travellers (the local couriers) who are already heading in the direction that the item needs to go. The app uses GPS to find the quickest route and provide tracking, as well as camera functionality to show proof of delivery.
Postmates is a San Francisco-based urban logistics platform operating in 18 US cities that aims to enable “anyone to have anything delivered on-demand. The company touts ability to empower communities to shop local without waiting and empower businesses to better compete with large companies by offering delivery or pickup through their open API.
FedEx unveiled a prototype of the FedEx SameDay Bot, an autonomous delivery device designed in response to the rapid growth of e-commerce, the complexities and expense of last-mile delivery, and our commitment to environmental sustainability. Roxo, as the bot is known, will travel at moderate speeds along roadsides and on sidewalks to deliver smaller shipments safely to customers at their homes and businesses.
- UPS Logistics and Services
- FedEx Logistics
- XPO Logistics
- United States Postal Services ( USPS )
- Deliv Logistics
- Dark store