The COVID-19 pandemic has accelerated online retail worldwide by 5 years. This means growing online market share and revenue for both traditional retailers and native e-commerce providers, including Business-to-Consumer (B2C), Direct-to-Consumer (DTC) brands, and Business-to-Busines (B2B). The percentage of global retail revenue attributed to e-commerce has increased from 10% in 2017 and is projected to double by 2022 to 20% as the pandemic accelerates this trend, originally anticipated to take another 5 years.
This compressed transition has placed more pressure on transport operators worldwide, including last-mile providers. These fleets have to accommodate surging demand, along with increasing customer expectations for service. Concurrently, internal pressures remain to contain costs and streamline their operations. Globally, the local delivery telematics market is expected to grow by 17% from 2020 to 2025, according to ABI Research. However, too many businesses continue to use outdated systems and broken processes, lacking a seamless information flow.
The challenges of last-mile delivery include shrinking delivery timelines, profitability concerns, scaling issues, and numerous evolving delivery options. It is critical that businesses fully optimize the final leg of the transportation journey, to not only materially reduce the estimated 50% total cost of delivery, but also to offer a consistent end customer experience, through visibility into accurate ETAs and clear communication and options for the customer.
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