Events from the past two years have impacted last-mile delivery significantly. However, the changes cease to stop. E-commerce continues to boom while the pressure to perform remarkably increases for last-mile delivery companies.
To help you stay ahead, we've compiled a list of trends shaping last-mile deliveries in 2023.
#1 Decarbonizing the last mile
According to the World Economic Forum, the demand for urban last-mile delivery is expected to grow by 78% by 2030. This will lead to 36% more delivery vehicles in the world's top 100 cities, which will cause a rise in related emissions by nearly one-third.
Consequently, the pressure to be carbon neutral in the logistics industry is stronger than ever.
More and more delivery companies are expected to turn to low-carbon delivery solutions and optimize their last-mile operations. It's time to go green or go home.
#2 Out-of-home delivery on the rise
Delivering parcels to a point or machine convenient for the recipient is known as out-of-home (OOH) delivery. The recipient then collects the parcel at a nearby point within a time frame of a few days.
Increased online purchases, ethical consumerism growth, and driver shortage influenced out-of-home delivery's popularity. PUDOs and parcel lockers progressed during the past year as the preferred delivery method. Parcel locker adoption had impressive growth in Estonia, Latvia, Lithuania, and Poland, as more than 50% of e-shoppers use them routinely. Finland, Slovenia, and the Czech Republic stayed on top of the list for PUDO points density.
CEP service providers are already increasing investments in OOH delivery solutions in preparation. Due to various benefits for all parties involved, the rapid growth will continue throughout 2023.
Hop on the bandwagon and plan the rollout of your network before the market becomes too saturated.
#3 Nano-hubs to support bike city logistics
Many CEP service providers incorporated cargo bikes into their fleets as a sustainable alternative to combat environmental disadvantages. But as their capacity and range are lower than conventional delivery vehicles, there is a need for additional cargo bike hubs near delivery areas.
Analysis and discussions with experts from the CEP sector revealed that the large-scale implementation of bicycle logistics concepts is failing due to a lack of available space and the optical integration of micro-hubs.
New research proposes using nano-hubs as an urban-friendlier and economically better alternative to micro-hubs.
The researchers developed a modular design concept that enables the customization of transshipment hubs considering urban planning restrictions and logistical processes. As nano-hubs require significantly less space, they are easier to integrate into the streets. In addition, the research demonstrated process costs could be reduced considerably compared to the micro-hub concept.
With the rising importance of urban mobility and the cost-ineffectiveness of the last mile, nano-hubs have the potential to become the go-to solution.
#4 C2C trade creates new competition for delivery
Customer-to-customer (C2C) refers to the exchange of goods between consumers. The influence of C2C trade on the delivery industry is already present. An example is Yodel, a UK parcel delivery company that experienced a 132% increase in delivery volume due to its C2C delivery service.
According to McKinsey, C2C trade will continue to expand due to consumers' growing concern about sustainability. A new field of competitive advantage has opened up. To stay ahead of the game, more companies will focus on developing affordable and timely delivery services to suit C2C needs.
#5 Big Data Analytics for cutting costs
Last-mile delivery is the most complex and costly part of the supply chain, reaching up to 40–55% of all expenses. Due to the mentioned and external factors amplifying the pressure on the last mile, logistics professionals started seeking tools that help them make better and more informed decisions faster.
Advanced analytics help them sift through vast amounts of data to understand what is currently happening in their business and what can happen in the future. As a result, logistics professionals can identify possibilities for improvement and lower costs without sacrificing the expected quality of service.
The use of big data analytics to drive strategic decisions will continue to expand through the following years and will soon become the standard in logistics.
Research finds that business leaders think analyzing, processing, and implementing findings are the most intimidating aspects of working with big data. Trying to keep up with industry trends on top of that can be even more overwhelming.
Make the next year easier for you and your team.
Mily Tech is a delivery analytics platform tailored for last-mile deliveries. It collects your data and gives it spatial context to help you quickly understand when, where and what happens on the field. Easily gain visibility of your delivery processes, understand courier productivity and make data-driven decisions that speed up ROI.