Ketan Badhwar is the Supply Chan Solutions and ECommerce Lead (Pacific) at GEODIS. In this guest post, he shares his thoughts about how the last mile is one of the highest focus areas of eCommerce logistics. After all, millions are being spent by both seasoned players and startups alike to solve the last mile puzzle.
Now the logical question is - why so much focus on last mile? The last mile cost represents approximately 28% of the total cost of delivery. However, according to independent estimates, depending on the industry, the last mile cost may represent up to 40% of the transport cost of goods.
Money is being invested in new technologies and innovations alike for example electric vehicles, drones, cycles (for very congested delivery roots) combined with route optimisation technology, GPS, IOT and Big Data to identify and manage this leg of transport.These are very exciting developments with huge implications on the way companies engage with clients and deliver convenience. With introduction of Bots and Artificial Intelligence, some human interaction is also expected to be replaced by technology to enable customer interaction.
What last mile technology your company decides to employ is determined by your industry, geography, socio–political fabric and infrastructure as main factors. However, instead of just focusing on technology deployment and cost optimisation, the focus must come back to the customer. Here are four steps for last mile strategy success:
Ketan Badhwar is the Supply Chain Solutions and ECommerce Lead (Pacific) at GEODIS. GEODIS is a Supply Chain Operator with a direct presence in 67 countries and a global network spanning over 120 countries, managing its customers Supply Chain by providing end-to-end solutions.