According to new research by the world’s largest logistics company, Deutsche Post DHL and Market Research Company Euromonitor, the Increasing urbanization is making the last mile of delivery more complex and critical for the success for the ever-growing e-commerce sector and its businesses.
It is estimated that more than 600 million people will live in urban environments by 2030 and with new technologies creating opportunities for both service enhancement and disruption online retailers and their logistics partners face the challenges of devising new approaches in order to remain competitive and survive.
Chief Commercial Officer for DHL, Katja Busch explained, “The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively, It’s not just about transportation, but about companies’ overall approach to managing inventory – getting the right items to the right place at the right time. DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks.”
The white paper, Shortening the Last Mile found that the major urban trends all create various challenges in terms of cost, service impact and organizational strain. Customer in urban areas is increasingly demanding faster deliveries which force retailers to overhaul their warehousing networks, along with replacing centralized networks with local fulfilment and distribution infrastructure, which results in the more accurate balancing of their inventories.
DHL eCommerce Americas CEO, Lee Spratt said, “The future evolution of this fast-moving, highly competitive e-commerce market is still incredibly difficult to predict, so companies need to remain nimble and efficient while ensuring they are meeting customer demands,”
Mr. Spratt continued, “The last mile requires considerable attention because however, the market evolves, it will continue to be one of the main touchpoints in the customer experience. Those companies that can build effective partnerships to make their urban delivery networks more elastic, invest in the most effective technologies to boost productivity, take advantage of data to build better customer experiences and, most importantly, manage their inventory as efficiently as possible will emerge as winners in the dynamic e-commerce marketplace of tomorrow.”