Looking to learn more about the challenges of last mile delivery and the innovative solutions being explored to optimize this crucial segment of the supply chain? Tune into the "More Intelligent Tomorrow podcast", where host Ben Taylor and researcher Dr. Matthias Winkenbach discuss the complexities and costs of last mile delivery, the impact on the environment, and the technological advances being made to improve the process.
With fascinating insights and expert analysis, this podcast is a must-listen for anyone interested in the future of logistics and delivery. Don't miss out – click to listen now!
Key takeaways you can find listening to this episode:
- "The last mile" refers to the final stretch of the supply chain where goods are moved from the final distribution location to the customer.
- Despite being the shortest segment, the last mile can represent up to 40% of the overall supply chain costs, making it difficult to cover.
- The cost and complexity of last mile delivery come from the fragmentation of shipments, increased customer demand for faster and more flexible deliveries, and the negative impact on the environment.
- Companies have adjusted their network structure to accommodate by moving from large, centrally located warehouses to smaller, satellite fulfillment centers.
- The move to hyper-localized inventory adds complexity to the system, requiring the optimization methods to be updated.
- AI/ML can complement traditional planning methods to create better routes, but variables like traffic, parking, and the mood of the driver can impact delivery in ways the optimal solution can't predict.
- Aerial delivery drones are not the answer due to regulatory, technological, and societal issues, but a hybrid solution of drones and delivery trucks might be possible in the future.
- Utilyzing AV can add value in case the regulations will step up. Tech is moving faster then legal principles.
- Using VR technology to select and order items online can consolidate deliveries in the area and cut down the cost and carbon footprint of the entire process.
- The biggest challenges to covering the last mile are not having many AI/ML models to solve the problem and developing automated logistics that can cover the last mile.
Listen to the full episode: HERE (Spotify)