AI technology now makes it possible for customers to know exactly when their orders will arrive at their doorstep. Instead of wondering when the delivery guy will show up, they get a clarifying sms a few hours before arrival telling them precisely when – timed to the minute..
Modern technology and logistics infrastructure have made sending a package anywhere in the world easier than ever imagined. The most visible part of logistics – the last mile – is as important as ever, and yet it continues to be complicated.
In major cities, commonplace obstacles like road closures, construction, heavy traffic, and even parking restrictions make the last mile remarkably time- and energy-consuming. For example, London recently announced the expansion of its ultra-low emission zone, making the deployment of last-mile delivery vehicles even more complicated for logistics companies. On the other hand, in more remote areas, the infrastructure (or lack thereof) as well as a low volume of deliveries often render the logistics excessively inefficient.
E-commerce continues to boom and spread to previously untapped markets, with some conservative estimates noting that total annual e-commerce spending could eclipse $2.7 trillion. Meanwhile, environmental reports become more alarming, and the need for smarter logistics has become more urgent than ever. Carbon dioxide emissions from freight transportation account for 30% of all transportation-related carbon emission from fuel combustion. But eco-friendly last-mile delivery solutions could help to make the logistics industry greener and reduce its carbon footprint. There are innovations powered by Artificial Intelligence (AI) in the areas of route optimization, robotics, and anticipatory shipping that can make real and quantifiable improvements on sustainability in last-mile delivery — while making the process smoother and more cost-effective.