Ben White looks at logistics and the impact of delivery in the last mile
As shoppers increasingly look to the internet as their prime resource for shopping, the importance of getting a product delivered in a short time-frame isn't an optional extra – it is part of the shopping experience and must be factored into any distribution logistics plan.
3 minutes to read
The 'last mile' of a parcel's journey from the warehouse to a customer is the most expensive (by more than 50 per cent) and time-consuming part of the shipping process and it is the challenge of committing to this last mile, that is having an effect on logistics and warehousing requirements.
One of the key issues around delivery in the last mile is that courier and postal deliveries are not an efficient way to move material around – either in congested urban areas, or in sparsely populated rural locations.
This is because the final part of a delivery journey can include large numbers of stops, often with relatively small numbers or single deliveries at each stop.
In rural regions, delivery routes can be long with large distances between each stop. The situation is not necessarily improved in urban areas, with traffic congestion, parking restrictions, one-way streets and congestion charges all having an impact.
To counter this, many logistics companies have looked at radical ways to shorten those delivery times, including the idea of drone deliveries and driverless cars or vans. These are almost certain to become reality in the not too distant future and the warehouses which continue to cater for the last mile of delivery will need to have functionality built in, such as electric charging points for vehicles and suitable docking stations.
In the meantime, much is being done to speed up other parts of the process to compensate for time and revenue lost in the last mile of delivery.
One notable development is the advent of automated picking and packing in warehouses, where forklift trucks can find and collect the relevant item and deliver it to a pre-determined point without a driver. Automated systems also bring challenges and developers may need to reconsider the volume of power available to a site if the tenants are likely to use heavily automated systems which will require machines powering up and recharging facilities as we move more towards sustainable energy sources.
A more immediate solution to reduce last mile delivery challenges is the adoption of gig-economy options which allows companies to use commonly available resources such as Uber technology to work directly with local, non-professional couriers who use their own vehicles to make deliveries.
In this way, companies can deliver online goods to customers faster, and customers can get their items delivered as, when and where they want them. This ability to make instant and scheduled deliveries can eliminate the need for second attempt deliveries which are another burden on the delivery process.
An alternative option is using the vast amount of vacant high street premises, which could offer a collection and pick up service for a number of online and internet only retailers.
However, these options will have an impact on the development of warehousing. Is it still sufficient to be based out on a motorway-linked industrial site - or do the delivery requirements increase the need to locate closer to a particular conurbation to access affordable delivery means via third parties?
Whatever the solution(s) for the conundrum of last mile delivery, we can be sure that warehousing requirements in the next ten or twenty years will be very different to what was required in the recent past.
