In recent years, there has been a shift toward “last mile” delivery, which is the final step of the logistics process that gets goods to the customer. This type of delivery has become increasingly important as businesses strive to provide better customer experiences.
However, last-mile delivery can be a challenge due to the increase in small parcel deliveries, traffic congestion, and the lack of visibility into the final stage of the delivery process.
Fortunately, there are a number of ways to optimize last-mile delivery, including using an AI-based solution. Route optimization is a great way to reduce delivery costs and increase efficiency. In this blog post, we’ll discuss the impact of last-mile delivery on logistics, the benefits of route optimization, and how AI can be used to improve the process.
What Is Last Mile Delivery?
The last mile of a delivery is the most important, and also the most expensive. It’s the last stage of the journey where the package is delivered from the transport hub to the customer’s door.
Does last Mile Delivery have an Impact on Logistics?
The cost of last-mile delivery has a significant impact on the total cost of logistics. In the US, for example, last-mile delivery accounts for 28% of the total logistics costs and in Singapore based on a workshop by NUS and The Logistics Institute Asia Pacific in 2017. The cost is between 13% to 75% of the total logistics costs.
Delivery route planning is a process that is used to optimize routes in order to reduce delivery costs and increase drop density.
Route optimization can be done by using several tools, but the most common one is called Dymola. Dymola uses a mathematical model called the minimum spanning tree algorithm which minimizes the total cost of delivery.
The e-commerce industry is growing rapidly, with more and more people buying goods online. This means that companies are competing for customers who are increasingly less willing to pay for shipping.
This is why route optimization has become a must-have tool in the e-commerce industry. Route optimization software can help companies find the best delivery route from their warehouse to their customer, which can increase drop density and reduce delivery costs.
E-commerce is one of the driving forces behind the growth of last-mile delivery. The global e-commerce market is expected to reach $5 trillion by 2022 and $58.74 trillion by 2028.
What Is an AI-based solution?
An AI-based solution is a technology that uses artificial intelligence to automate processes. AI-based solutions enable your organization to run more quickly and grow exponentially because they are characterized by computational precision and quick processing.
Benefits of Route Optimization
There are many benefits of route optimization, including the following:
E-Commerce is a rapidly growing market. With the help of route optimization, businesses can deliver their products to customers more efficiently and effectively.
Route optimization is an important process in delivery planning. Companies can use route optimization software to plan their deliveries and reduce the cost of transportation for both themselves and their customers. Route optimization software helps companies plan routes that are more efficient than going from point A to point B with no consideration for other points in between. Route optimization software also helps companies optimize routes, so they don't have to make as many trips, which reduces fuel usage, time, and the cost of transportation.
The goal of route optimization is to reduce delivery costs and increase customer experience.
Route optimization can be done in two ways, either by using a routing algorithm or by using a simulation. The former is more commonly used because it is more accurate and can be updated in real-time. Route optimization helps companies to reduce delivery costs and increase drop density which in turn leads to better customer experience. It also helps them stay on top of the latest e-commerce trends which means that they can provide the best customer service possible.
If you are looking for ways to optimize your delivery team's performance, you may want to consider using AI to help with last-mile delivery. AI can help you plan routes more efficiently and reduce enroute costs.
The final mile of any product’s journey is crucial. It’s the last opportunity for businesses to make a good impression on customers. Today, many businesses are turning to artificial intelligence (AI) to optimize last-mile delivery and reduce enroute costs.
AI can help businesses in a number of ways. For example, it can help businesses plan the most efficient routes for their delivery team. AI can also help businesses keep track of their delivery team’s progress and provide real-time updates to customers.
Overall, AI can help businesses improve the last-mile delivery experience for both their employees and customers. And when businesses reduce their enroute costs, they can pass those savings on to their customers in the form of lower prices.
As the holiday season nears, the demand for online shopping and last-mile deliveries increases manifold. This puts a strain on the resources of the delivery team and incurs additional enroute costs. uRoute's AI Backed Route Planner and Route Optimizer can help reduce these costs and make the delivery process smoother. The premium plan is available to try at no cost till the year-end. Email the sales team for a FREE demo.