• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Home Delivery/Last Mile Logistics - a Disrupter's Market

Home Delivery/Last Mile Logistics - a Disrupter's Market

March 17, 2015
SupplyChainBrain

Home delivery markets are not new. The practice is ancient. But these services were paid for. Free is not cheap. The economics of transportation show that between 25 percent to 75 percent of the transportation costs occur for direct to consumer logistics. With so much money entering into last mile, new regional carriers are expanding, and iconic newer disrupters, funded by investors, have entered the market, offering on-demand approaches.

In 2015, retailers will struggle to find profit or at least be cost neutral. Retailers and service providers need to apply some strategic thinking here. Tacking on some service and posting standards rates won’t be enough any longer.

Home delivery requires scheduling a delivery that contributes to the firms. And it is also about service, not easy in this always on 24/7 and mobile world. Many category retailers, de facto, have to provide services due to the nature of their products—the need for assembly and installation, for example. Specialty retailers know that an extended service relationship under their brand creates loyalty and long-term relationships. But customer service can have a negative effect if not done well. Winning at home delivery takes skill and smart technology.

The technology for last mile can be seen in home-grown solutions in ecommerce, idea-generating software from disrupter service providers, and logistics technology providers who support these sectors.

So what will it take?

• Continuous Route Optimization—specific to the last mile challenge. In the service world, unlike longer haul logistics, new requests keep popping up, so systems have to be responsive and avoid the old-style cutoff points. In 2015, traditional TMS route optimizers will scramble to revise their offerings to meet this challenge.

• Dynamic Incentivized Scheduling—the ability to develop economic models and dynamic schedules to provide attractive choices to the customer and profitability to shipper. This is the gold standard in technology that only a few providers offer.

• Mobile and Telematics for Last Mile—GPS and AVL for precise locating and directing of vehicles. These technologies are blended into the solution to provide driver instructions, monitor delivery status, and link to execution for real-time routing changes.

• Electronic Confirmation and Proof of Delivery—Not just mobile signatures. The system confirms appointments while en route to the customer; validates presence (they came and you were not home); electronic proof of delivery; and follow-up on customer satisfaction on the process.

2015 will see more TMS+ providers try to understand the features and needs for last mile, as more end-users seek better solutions. More acquisitions will emerge with omnichannel pressures mounting.

The Outlook

ChainLink estimates the current sales for a “suite” in last mile to be ~$100m. This year will see significant new sales as TMS+ providers scramble to provide an offering. Most offerings will be modular and retailers will have to integrate and customize to support their own processes. Existing technology leaders, who do have more complete solutions, will gain the upper hand, offering SaaS and mobile applications along with their expertise and advice to customers.

RELATED CONTENT

RELATED VIDEOS

Last Mile Delivery Logistics Logistics Outsourcing Transportation & Distribution Technology Transportation Management Food & Beverage
KEYWORDS Ann Grackin CEO ChainLink Research delivery scheduling Food and Beverage home delivery last mile delivery Logistics Logistics Outsourcing logistics services route optimization Supply Chain Management: Transportation Management Technology Transportation & Distribution Transportation Management
  • Related Articles

    CEVA Logistics Launches Home Delivery Service Center

    Q&A: Innovations in Last-Mile Delivery

    A ‘Food Rescue’ App Finds a New Logistics Partner

  • Related Events

    The Big Picture: What It Takes to Make Last-Mile Delivery Work

  • Related Directories

    Kuebix

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Vaccine Spat Boosts Support for Brexit; India Bans Remdesivir Export

    Coronavirus
  • Semiconductor

    Why Shortages of a $1 Chip Sparked a Global Economic Crisis

    Coronavirus
  • U.S. Manufacturing

    How COVID-19 Will Cause Permanent Changes in Manufacturing Strategies

    Coronavirus
  • Shipping Costs

    Higher Shipping Costs Are Here to Stay, Sparking Price Increases

    Coronavirus
  • Retailers Seen Closing Thousands of Stores

    Retailers Seen Closing Thousands of Stores Even After Pandemic

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

Yang Ming 6 River Systems ArcBest
Armada aThingz BluJay
Burris Logistics DSC Logistics DCSA (Digital Container Shipping Association)
DHL Resilience360 Flash Global Genpact
Geodis GEP GreyOrange
Honeywell Corporate Honeywell Intelligrated Infor
Inmar Kibo Commerce Kinaxis
Logility Magnitude Software MPO
Old Dominion Oliver Wight OpenSky
Paccurate Ports America Purolator
QAD Precision Red Classic Riskmethods
S&H Systems Snapfulfil TGW Systems
Tradepoint Atlantic Transportation Insights Watson Land Company
Westfalia Technologies Workjam
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing