Digitising the last mile: transforming logistics through innovation

At a recent Transport Forum event dedicated to last-mile logistics, Renko Bergh, co-founder of CtrlFleet, brought to light the indispensable role of digitalisation in enhancing delivery efficiency and customer satisfaction in the last-mile segment.

In the dynamic world of logistics, the digitisation of last-mile logistics stands as a beacon of transformation, reshaping the delivery landscape for long-haul transporters. The term “last mile of analytics” symbolises the crucial interaction between data teams and business units. It encompasses the critical moments of interpretation and decision-making based on analytical reports and dashboards. This intersection is where data analytics prove their worth, but also where significant challenges arise. Bergh emphasised the significance of harnessing last-mile data as a vital tool in redefining operational efficiency and customer engagement.

“Despite its designation as the final leg of the supply chain, the last mile is notoriously complex and costly, consuming up to 53% of total shipping expenses. Consumer expectations further complicate this landscape; a vast majority express hesitation to engage with retailers after subpar delivery experiences, underscoring the dire need for speed, convenience, and transparency in delivery services. In this era – where rapid delivery is not a luxury but a standard – the stakes for last-mile logistics have never been higher,” he noted.

The application of last-mile logistics extends across various sectors, each with its unique demands and challenges. “From e-commerce – where the focus is on tracking deliveries from warehouses to customers’ doorsteps – to healthcare, where the timely delivery of medical supplies is crucial, the need for efficient last-mile solutions is universal,” said Bergh. “In the realm of logistics and transportation and retail, it is paramount to optimise the delivery of goods and services and ensure the swift movement of products to stores, as well as direct to consumers.”

Analytical innovation is key to efficiency. “Dashboard analytics, for instance, offer a real-time and historical overview of field activities, unveiling trends and identifying opportunities for improvement. Heat maps and predictive analytics go further, offering insights into operational planning and future demands. These tools enhance visibility; they also empower decision-makers to optimise routes and manage resources effectively to meet consumer expectations with unparalleled precision,” he noted.

The benefits of leveraging last-mile data are tangible across all sectors. In e-commerce, analysis of delivery times and routes can significantly elevate the customer experience. “For logistics companies, real-time data allows for the agile adjustment of delivery schedules, ensuring maximum efficiency. In healthcare, a streamlined supply chain ensures the availability of vital equipment, while in retail, improved delivery processes directly translate to heightened customer satisfaction,” expanded Bergh.

He believes that the transition towards data-driven last-mile logistics necessitates a shift in mindset to prioritise the resolution of business challenges over merely adopting new tools and processes: “This approach fosters a culture of problem-solving and innovation, as exemplified by a South African e-commerce company that, through last-mile analytics, achieved a notable reduction in delivery times, greatly enhancing customer satisfaction.”

The journey towards digitising the last mile is not without its hurdles, however. “The integration of advanced tracking systems demands not only technological adaptation, but also a commitment to sustainable and responsible logistics practices,” Bergh emphasised. “With the global last-mile delivery market projected to witness exponential growth, the imperative for companies is clear: to embrace digital transformation, navigate its challenges, and harness its potential for a future characterised by efficiency, sustainability, and unmatched customer service.”

As we stand on the brink of this digital revolution, CtrlFleet invites industry peers and enthusiasts to join it in exploring and advancing the frontiers of last-mile delivery. “Together, we can drive towards a future defined by precision, efficiency, and excellence in service, meeting the evolving demands of the digital age head-on,” said Bergh.