The impact of last-mile delivery

Logistics
Packaging
Reuse
Sustainability
Written by
Coline M.
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30
July 2024
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3
min
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Today, last-mile delivery is a major strategic challenge for companies, especially in a context where e-commerce is exploding, and consumer expectations are constantly rising. 

Last-mile delivery represents the final phase of the delivery process, from a few hundred meters in urban areas to several kilometers in rural areas, and consists of getting products from the warehouse to the end customer.  To meet these growing challenges of speed and flexibility, companies need to rethink their logistics while offering opportunities for innovation. 

The challenges of last-mile delivery

  • Environmental impact: The increase in individual deliveries leads to a significant rise in CO2 emissions. According to the Comité d'analyse stratégique, this stage accounts for around 30% of CO2 emissions in the transport sector. This carbon footprint is mainly due to the multiplication of short journeys and individual deliveries.
  • Urban congestion: The influx of delivery vehicles contributes to the congestion of city centers, clogging up road traffic.
  • Time loss: Time spent in urban areas is increased by traffic problems. Delays due to traffic jams can affect service quality and customer satisfaction.
  • High costs: Fast, personalized deliveries entail additional costs, due to the need to load and operate vehicles. Decentralized costs per parcel also add extra costs.
  • Logistical constraints: Growing consumer expectations of speed and flexibility put additional pressure on supply chains, requiring ever more innovative and efficient solutions.

Innovative solutions 

Faced with these challenges, many companies are looking for solutions.

  • Optimizing space: pooling deliveries and reducing the number of empty deliveries optimizes routes and cuts costs. 
  • Environmentally-friendly vehicles: The adoption of electric vehicles and environmentally-friendly means of transport (such as cargo bikes) is a direct response to the problem of CO2 emissions.
  • Relay points and automatic lockers: These solutions offer a flexible alternative to home deliveries, reducing delivery failures and optimizing rounds.
  • Artificial intelligence: The use of artificial intelligence (AI) in route management helps to optimize delivery routes. Advanced algorithms help forecast traffic, plan the most efficient routes and improve the accuracy of delivery times.
  • Urban hubs: Urban hubs are distribution centers located in the heart of cities. They bring products closer to end consumers, reducing delivery times and improving logistics efficiency.

The future of last-mile delivery

Innovation continues to shape the future of urban logistics. Companies that integrate these innovative solutions are in a position to meet the challenges of last-mile delivery, 

While last-mile delivery remains a daily challenge, emerging solutions offer the opportunity to rethink this stage, making logistics more efficient, economical and sustainable. For companies wishing to maintain their competitiveness in a constantly evolving market, the integration of these innovative practices will be essential.

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