Technology continues to drive innovation across the logistics domain. Consumers and businesses today have greater choice and prefer suppliers that provide flexibility, reliable multimodal transport and on-demand information about their shipments.

While numerous applications are available for optimizing a variety of key logistics functions, the first- and last-mile segments are proving to be especially complex, generating significant costs for shippers and carriers.

In the coming year, global e-commerce sales are expected to grow to $6.3 trillion. That makes it crucial for companies to transform their operations through the integration of technologies that can help counter future disruptions.

Following are some cutting-edge technologies that are having a dramatic impact on last-mile logistics.

Drones, electric vehicles and autonomous vehicles. Drones are no longer the product of far-fetched imagination, but have become a reality that’s revolutionizing last-mile delivery. Amazon Prime Air, for one, has announced the launch of deliveries via drone in several U.S. states, including California and Texas. Electric vehicles are gaining traction as governments issue stricter rules on carbon emissions, especially in urban areas. 

Companies like FedEx and Volkswagen have successfully deployed autonomous vehicles in Germany and China for last-mile deliveries. The U.S. Postal Service is acquiring autonomous vehicles to deliver in 250,000 rural areas by 2025.

Macro warehouses and smart lockers. The growth of e-commerce has raised customer expectations of delivery speed. This puts extra pressure on market players to provide orders within a day or, at most, next day. Helping to make this possible are macro warehouses, which store inventory in limited amounts in urban areas for faster fulfillment. Amazon.com is in talks with the largest mall owner, Simon Property Group, to convert shuttered department-store spaces into fulfillment centers.

Like old mailboxes, smart lockers provide suppliers with an efficient place to store customer orders. Located in malls or other public areas, they can be accessed via web interfaces or apps. 

IoT and blockchain. Optimization of the cloud with internet of things-enabled devices has opened a plethora of opportunities for companies by accelerating real-time insights, acting as a centralized data hub, and streamlining processes via automation. Location intelligence systems equipped with IoT provide logistics companies with accurate geographic details about every vehicle in the fleet.

The technology makes possible real-time updates on driver efficiency and fuel status, suggesting routes to avoid delays. Fleet managers can monitor fuel consumption per minute, engine performance and cargo condition. They can also avoid vehicle breakdowns through with predictive maintenance and scheduling.

Blockchain technology provides a tamper-proof record of each transaction. It ensures the secure movement of goods by preventing counterfeiting, detecting unauthorized diversion of goods, identifying suppliers at risk, keeping proof of regulatory compliance, and providing ledgers of all transactions. 

Route optimization with artificial intelligence. AI-powered route optimization tools streamline the whole process of delivering goods on time, while reducing operating costs through real-time visibility. Organizations can better analyze traffic patterns, road congestion and weather conditions.

Additionally, AI analyzes the capacity of every vehicle in the fleet and optimizes deliveries based on location, time constraints, historical vehicle performance, traffic patterns and fluctuations in demand. It cuts down on transit time and fuel cost by suggesting the best routes for quick and seamless delivery.

The future looks promising for the logistics industry to improve last-mile delivery performance. With the help of new technologies, providers can meet customer expectations, optimize operations, reduce costs, and boost agility.

Abishek Bhat is vice president, business development at Trigent Software.