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The Effects of Internet Shopping on Last Mile Delivery

Monday, November 26, 2018

Peeling the layers back of the disruption of the retail market reveals a change in shipping and fulfillment at large — and those changes create a ripple effect throughout the transportation industry. Increased e-commerce adds significant trucks and goods on the roads, which creates more overall traffic. The greater demand for shipping and delivering impacts the driver shortage across the board.

The inefficiency of the so-called Final Mile, a term used in supply chain management to describe the movement of goods from a transportation hub to a final destination is considered by many as the final frontier of logistics. Its cost so burdensome that futuristic solutions are plenty — drone deliveries, self-driving vehicles, flying warehouses or other yet-to-be-invented solutions for the Final Mile issue.

Courier, express and parcel services is growing throughout the world and based on data collected in recent years, is expected to increase at a compound annual growth rate of five percent through 2025.

The Final Mile delivery issue is not new. The United States Postal Service has been tackling and trying to improve the inefficiencies of home delivery for centuries. More recently, United Parcel Service (UPS) and FedEx have looked for better ways. However, e-commerce and the Amazon Effect have catapulted Final Mile issues to affect the country’s logistics industry at large, exacerbating fragile infrastructures and testing experts across the country.

Amazon began experimenting with drone delivery in late 2016 and gained a patent for a delivery drone in early 2018. Mobile technology and APIs are already improving to the point of drones being piloted by central technology by someone not even near a particular neighborhood delivering packages to homes in the neighborhood.

Additionally, using autonomous vehicles to cross stock freight in warehouses is already happening and expected to increase as technology improves.

Dupré Logistics is a privately held, asset based provider of transportation and logistics services that include energy and chemical transport, dedicated truck transportation, site logistics, and freight brokerage. We specialize in tanker, hazmat, and petrochemical transportation and complex supply chain solutions in industrial and consumer products. Visit www.duprelogistics.com for more information.

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