Emerging Technologies in Last-Mile Delivery

The explosive growth in e-commerce that flowed from the COVID-19 pandemic has made last-mile delivery more important than ever in the retail industry. Companies that meet consumer expectations when it comes to last-mile delivery will be well-positioned to thrive.

Meeting those expectations, however, is easier said than done, as consumers want delivery to be fast, reliable and affordable. An increasing number of consumers are also looking for companies to incorporate sustainability into their delivery strategies.

Many companies are turning to technology solutions to drive more effective delivery strategies that satisfy customers. The following emerging technologies are among those having the biggest impact.

AI-Driven Route Optimization

Route optimization is a critical component of last-mile delivery, as making routes more efficient means consumers get products faster. It also means delivery vehicles spend less time on the road, which reduces costs for retailers.

Today’s cutting-edge route optimization technology leverages artificial intelligence to ensure drivers are always on the quickest delivery route. AI-driven route optimization tools combine data on traffic, weather, customer needs and other factors to identify the most efficient routes. They also continue to track relevant data as deliveries are being made, providing dynamic updates when conditions change.

Optimization tools also empower businesses to boost their sustainability efforts. As routes are optimized, companies cut down on fuel needs as well as the carbon footprint resulting from their deliveries.

Autonomous Vehicles

Autonomous vehicles promise to take last-mile delivery efficiency to the next level. By providing a driverless option, autonomous vehicles allow for smaller vehicles to be used. Many of the vehicles being tested today are the size of consumer dishwashers, and few are larger than golf carts.

Because of their smaller size, autonomous vehicles require less energy, which translates to higher levels of sustainability. Additionally, most are electric, which means they have a much smaller carbon footprint than traditional delivery vehicles.

The small size of autonomous vehicles also contributes to greater efficiency in the delivery process. They have the potential to navigate on sidewalks, bike paths, and other unconventional routes, meaning they could improve the speed of delivery in urban areas where traffic congestion is common.

Autonomous vehicles also increase the reliability of the delivery process. They utilize AI to navigate, relying on 360-degree monitoring provided by cameras and sensors. AI’s ability to objectively monitor and analyze data makes it more capable than human drivers to respond to changing road conditions and avoid risks that can lead to accidents.

Parcel Lockers

Parcel lockers are another emerging technology gaining popularity in last-mile delivery. Rather than completing the delivery process at the consumer’s home or office, parcel lockers give consumers the option of having deliveries completed through an automated self-service locker in a convenient location.

Parcel lockers can make deliveries more secure, allowing consumers to receive deliveries at their convenience and avoiding the threat of theft that comes with leaving deliveries in an outdoor location. The lockers also protect deliveries from being damaged by bad weather.

A number of tech innovations are used to optimize the efficiency of parcel lockers. They integrate with online tracking systems to provide notifications when packages are available or have been picked up, and utilize smart locks that can be remotely activated. Some parcel lockers use thermal sensors to monitor optimal temperatures, allowing them to be used for food delivery.

As delivery demands have increased, technology innovations have provided a number of opportunities to improve efficiency. Businesses that take advantage of these innovations will have a competitive edge in meeting customers' expectations and securing their loyalty.

Ray Rosel is the business growth and operations sales leader at Senpex Technologies, a last-mile delivery partner.