The Top 5 Upcoming Trends that Will Disrupt Last-Mile Delivery in the Middle East
As an e-commerce entrepreneur who frequently deals with the challenges of good delivery, you’re probably aware of the term last-mile delivery. Even if you’re not entirely sure what it is, it’s certainly a term you’ve heard before.
As you might suspect, shippers face all sorts of tedious obstacles when it comes to last-mile delivery, and those obstacles tend to change as new trends appear each and every day. Understanding these trends and the logistics that go hand-in-hand with modern last-mile delivery is going to be an enormously important factor for shipping optimization.
For example, according to SupplyChainGameChanger.com, trends such as consumer delivery demands, tracking technology, and even e-commerce industry uptick are responsible for modern changes in last-mile delivery logistics. Because e-commerce is expected to continue to grow (It grew to about $2.4 trillion by 2018.) and the demand for same-day delivery is valued at about $1.35 billion, these trends clearly are affecting last-mile logistics.
The Top 5 Trends That Will Affect Last-Mile Delivery
As you can imagine, understanding the trends in last-mile logistics can help shippers — especially e-commerce entrepreneurs who are competing against e-commerce giants — gain a competitive edge, optimize their performance, and even better serve their customers.
We did the tough work for you and rounded up the top 5 trends in last-mile delivery. Read on for a modern comprehension of what trends you should be looking out for!
01: Faster Fulfillment
In an age of same-day or two-day delivery, it only makes sense that consumers are ready and willing to pay a premium for faster delivery. In fact, this need is becoming so prevalent, it’s essentially considered one of the most important last-mile delivery trends to keep up with.
According to the McKinsey Report, about twenty-three percent of consumers are willing to pay extra for same-day delivery. Though seventy percent of consumers still state they’re satisfied with the cheapest form of home delivery, you can’t ignore that staggering 23 percent. That number only will increase dramatically in the future.
With these statistics in mind, it makes sense how the need for faster fulfillment and speedier delivery could drastically affect e-commerce entrepreneurs.
02: Gig Economy + Crowdsourcing Apps
If you’ve never heard of the gig economy, don’t sweat it — we’ve got you covered. The gig economy — at its most basic definition — is the term used to describe the workforce environment where short-term “gigs” are the norm.
The gig economy — along with the innovation of crowdsourcing apps — is a huge factor in last-mile logistic trends. Both of these factors are, essentially, revitalizing and revolutionizing the delivery system as a whole. In 2015, venture capital investments in supply chain and logistics start-ups were four times higher than the year before. Then in the first quarter of 2016, the venture capital dollars invested in the same space was estimated at $1.75 billion. That number only has increased since.
Consider companies such as Postmates, Deliv, Amazon Flex, UberRUSH and more. These companies continue to revolutionize ad-hoc delivering. While this isn’t the same exact type of delivery entrepreneurs dabble in, it leverages the technology.
03: Optimized Delivery via Traditional Postal Channels
A modern trend in last-mile delivery logistics is for companies to invest in traditional postal services to navigate local deliveries. This isn’t an entirely new concept. Well-known companies, such as Emirates Post Group, already have integrated this into their optimized delivery services.
You might be thinking no one uses traditional carriers anymore; USPS is a thing of the past. But as third-party carriers have advanced last-mile delivery services, traditional channels also have stepped up their game. Their e-commerce package delivery services have grown. Now they offer competitive delivery prices that often can create a more efficient service for local deliveries.
04: Local Warehouses
To fully integrate and optimize last-mile delivery services, it might be necessary for companies to use local warehouses to ensure their last-mile delivery is as efficient and fast as possible. The idea? Using local warehouse space to help create easier access to faster deliveries.
This trend is something even the big e-commerce companies are investing in. For example, Amazon Prime now has almost 60 hubs in the United States. This number is increasing every day due to the demand for same-day or next-day delivery. That type of competitive edge is something that puts Amazon above the rest. It makes sense that it could help your e-commerce shipping logistics too, right?
05: Smart Technology for Tracking
As customer demands increase, so do their requirements for tracking information. With this demand comes the growth of company-provided, resilient and effective tracking systems. This use of smart technology isn’t just an option anymore. It’s essential for winning at the last-mile delivery game. The interesting part? This type of technology is adapting and changing every day. With the use of drones, self-driving cars, AI, smart technology, and sensors, better tracking systems are becoming more prevalent and more necessary than ever.
It’s important for shippers, e-commerce entrepreneurs, and others to pay special attention to the trends in last-mile logistics today to stay at the top of their industry. If entrepreneurs choose to ignore last-mile logistics, they risk losing their competitive edge. Which often is one of their most notable advantages versus e-commerce giants (such as Amazon, Walmart, Target, and more). The fact of the matter is, new trends in the last-mile delivery process will dramatically affect most industries. Are you prepared to optimize your last-mile delivery logistics?
We are Fetchr; a company specialized in e-fulfillment. We help e-commerce entrepreneurs grow their business in the Middle East. Let’s make it happen! One box at a time. Learn more here.
This blog is intended for informational purposes only, and should not be considered business or legal advice. MENA 360 DWC-LLC (Fetchr) will not be held liable for the use, non-use or misapplication of this information, lost profits, personal or business interruption, or any other loss.