The next digital disruption in ecommerce logistics / Part 3

𝗖𝗟𝗦 𝘀𝗽𝗲𝗮𝗸𝘀 𝗼𝘂𝘁: 
𝗧𝗵𝗲 𝗻𝗲𝘅𝘁 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗶𝗻 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗹𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 / 𝗣𝗮𝗿𝘁 𝟯

The result of the #pandemic is a tremendous increase in #ecommerce #volumes, particularly for urban #grocery #delivery. Same-day delivery has become the option of choice for #consumers, partly explaining the huge #success of #Walmart and alike in the USA.

The next step in the digital last mile evolution – car and driver become independent assets 

𝗧𝗵𝗲 𝗻𝗲𝘅𝘁 𝘄𝗮𝘃𝗲 𝗼𝗳 𝗰𝗼𝘀𝘁 𝗮𝗻𝗱 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴, 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 𝗴𝗮𝗶𝗻𝘀 𝗶𝗻 𝗹𝗮𝘀𝘁 𝗺𝗶𝗹𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆.

Whereas previously #digitalization impacted intra-logistics and delivery #optimization (e.g., dynamic route management), now the #deliverymodel itself is changing fundamentally.
#Algorithms that include parcel dimensions and delivery sequence per tour, available in advance, determine each parcel’s optimal position on the automatically loaded roll containers. As a result of #GHG #quota allocations, #electricdeliveryvehicles can even capitalize on their use of “clean electricity” as a fuel. Electric vehicles become standardized and highly digitalized #assets in #lastmiledelivery. 

Consequently, the #transport vehicle and the #subcontractor become independent assets which can be managed digitally and serviced by #hubs preparing standardized transport containers. This #model will manage delivery, both to home addresses and #PUDO locations. 

Such #dynamic and flexible last mile #infrastructures, operated using both independent vehicles and drivers, or only drivers, themselves digitally managed by third parties, has been developed and tested and is ready for implementation: 

· Today’s #parceldelivery subcontractors, using vehicles with conventional combustion engines and set-up / outsourced / provided by #carriers will be forced to adapt and become independent, self-employed #operators in a last mile delivery sector which is accessible to everyone.

·  New #networks of (predominantly urban) highly mobile food & #grocerydeliverers, specialising in same-day or even same-hour delivery, already working in a highly digitalised environment.

To be clear, the next-day delivery model will not disappear. But it will face a significant #challenge from the new model which is able to take advantage of the 4,000 to 15,000 fast-moving consumer products which are already stored and processed in micro-hubs (i.e., retail outlets) in urban areas and regionally. These products represent up to 2/3rds of the #retailmarket.

Optimizing last mile delivery will raise #efficiency by up to 30% compared to today’s #deliverycosts. 

By twinning #digitalization with #sustainability, #retail is being re-engineered to become #omnichannel, bringing efficiency gains and #costsavings.