Technology to meet the challenges of last mile delivery

Last mile delivery must meet several challenges. Technology is a key element in the transformation that the various players must undertake.

Guarantee to the delivered customer compliance with the delivery window

Customer experience matters. For example, it allows you to follow the position of the vehicle on a map. This is currently insufficient: the demand is compliance with the indicated delivery slot and increasingly the customer's choice of time slot.

Proposing these time slots requires calculation algorithms capable of taking into account multiple parameters: the geographical area, the type of delivery, the customer category, the available resources, identified events and feedback.

Respecting the delivery window is based on 3 fundamentals:

1. a route optimization technology which must absolutely generate deliveries within the chosen time slots,
2. a portal allowing the carrier to view ETAs (Estimated Time Arrival) in real time and to react in the event of a discrepancy observed,
3. visualization by the delivery person of compliance with the ETA for each of its customers to be delivered.

Give the shipper, the brand, real-time visibility on their customer satisfaction

Last mile delivery is the last link in the service chain between the shipper, the brand and its end customer. This is often a “gray zone” of non-visibility for the charger. It is essential to maintain the link between the shipper and his customer during this last step. This link does not consist of geolocating the delivery person. Its sole objective is to achieve customer satisfaction.

This satisfaction is measured according to 3 indicators: compliance with the delivery window, the delivery execution report and the customer's immediate satisfaction survey.

The shipper has access to these indicators in real time, as well as relevant and easy-to-interpret key performance indicators (KPIs).

As much information as possible on the delivery process must be captured, formatted and returned to the shipper: this restitution is done on customizable portals and via real-time web services.

Lower costs and better quality of service for carriers

The carrier's equation is simple to formulate: reduce costs of last mile delivery AND increase the quality of service for delivered customers and ordering parties.

Technology participates in solving this equation with a set of technological bricks:

• The digitalization of appointment making allows you to reduce the costs of this expensive operation. It also provides a service that is highly appreciated by customers. It is in fact more pleasant to choose your delivery time slot when you are available rather than being bothered to make a choice in a hurry. This emergency choice causes delivery failures due to the customer's non-presence. In addition, this digitalization makes it possible to adapt time slot proposals according to the customer, the type of delivery and multiple parameters (geographic area, etc.)

• The route optimizer is a key module. The algorithms are based on standard tangible elements (type of delivery, delivery address, weight, volume, time on site, available resources, etc.) and on predictive data delivered by operators.

But this is not enough, we must integrate:

1. Artificial Intelligence technologies to inject feedback (we speak of self-learning)
2. address correctors to make incomplete or incorrect delivery addresses more reliable.
3. business rules: the minimum turnover that a tour must generate, the required skills (language, technical skills, etc.), costs (vehicle, double crew, etc.), etc.
4. in the case of close urban deliveries, a Clustering function to calculate the optimum stopping point for several deliveries

• The key role of the delivery person: he is the central actor. It has a mobile application allowing it to carry out its deliveries in the best conditions to deliver a quality service. The mobile app must be fluid and capable of capturing all relevant data, especially those relating to customer satisfaction. The technology used for the app must be as open as possible and today the wise choice is PWA Progressive Web App. A PWA app can be deployed on any terminal with a browser and thus overcomes Android or IOS constraints.

• Real-time management: all data relating to the execution of deliveries must be collected and returned to the different players in last mile delivery: the carrier, the shipper, the delivery person and the customer. The type of data returned depends on the target actor. They must be understandable by the user, so the UX (User Experience) approach is a key factor in appropriation. The large volume of data, the need to add it frequently, the speed of analysis and the necessary processing power require relying on NO-SQL databases designed for Big Data. Key performance indicators (KPIs) must be presented and of course customizable.

• The API Hub: the last mile delivery platform is one piece of a global logistics ecosystem. It is necessary to have an API Hub to integrate it into this ecosystem. This Hub must rely on standards such as REST APIs.

Technology provides the means to apply the best business practices of today and tomorrow.

This last mile delivery market is rapidly evolving: delivery volumes are increasing, customer behaviors and lifestyles are changing, major players like Amazon and Alibaba are gaining a foothold in this market and are driving forces, sustainable development is a must… BtoB delivery follows the same movement.

Technology anticipates and supports these changes over time... The progress made in recent years is important but there is still much to do.

However, it is not sufficient: the transformation of a carrier can only succeed if it is instigated, supported and followed by the manager.

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