Startups are bringing retailers a ray of hope in improving the last mile problem.
The last mile often poses the most problems for many retailers. There are many examples of this, if the customer is not at home at the time of the delivery it exposes the goods to theft, damage and loss. When goods are not delivered, it can be costly and time consuming for all parties involved. With a large increase of online orders, instances such as these will continue to increase and become more of a threat to company profit.
In logistical terms, this final struggle for delivery is known as the ‘last mile problem.’ Considering the extent of online e-commerce growth, opportunities have arisen for budding start-ups to change the game when it comes to technology and driver management. The growing number of startups focusing on this issue brings a ray of hope to many retailers worldwide.
Last mile delivery startups are focusing on creating a value ecosystem, becoming the crucial link to improve logistical cost and time efficiency. For many retailers, in-sourcing last-mile delivery can be expensive, it is difficult to forecast the amount of delivery drivers needed to fulfill consumers’ expectations in a cost effective manner. Last mile delivery startups are using revolutionary technologies and processes to maximize company profit and offer high class customer service.
Crowdsourcing is an efficient process in which many startups are using. Drivers are given access to an ‘app’ in which they can choose when and where they want to work. When they are ‘on the clock’ and active, they will be directed to a location near them in which they can pick-up a package and deliver it within a local radius. This ensures all packages are safely transported in an extremely efficient manner. Crowdsourcing can also ensure packages are delivered one by one, meaning goods will not be stacked in a large truck with little care for their handling.
Startup companies are also looking at bettering the technology and tracking of individual packages. With these ground breaking breakthroughs in technology customers will know exactly when and where their package will be delivered. These processes decrease the ‘last mile problem’ substantially, meaning overall e-commerce companies will be less likely to lose millions on lost and broken packages each year. Thus, improving the logistics ecosystem worldwide.
The logistics ecosystem is poised for change as budding entrepreneurs are now focusing on creating and bettering technologies that will allow retailers to outsource their last mile deliveries. These technologies will ensure customers receive high class customer service, with the option to track their deliveries in real time.