Consultancy.nl, the platform for the consulting industry, published an article about the possibilities to optimise last-mile delivery. Emixa's Jason Bos shares how AI can be a useful tool for this.
In this era of e-commerce, delivery drivers are on the road all year round. While parcels often travel great distances, it is the ‘last mile’ that proves to be the most complex – and costly. AI can provide a solution, says Jason Bos from Emixa.
The saying goes, ‘The last stretch is the hardest’, and this certainly applies to parcel couriers. The ‘last mile’ – the stage in which a parcel is transported from the local hub to the customer’s front door – is often a logistical headache.
“Last-mile delivery sounds simple, but this final part of the logistics chain is often the most complex and time-consuming,” says Jason Bos, consultant at Emixa. “Despite the short distances, costs can quickly add up. There is plenty of room for improvement in last-mile delivery.”
Optimising the last mile can offer significant benefits. “By leveraging artificial intelligence, costs can be reduced without negatively impacting the customer,” Bos explains.
For example, e-retail giant Amazon uses AI to help drivers locate the correct parcels more quickly at each delivery stop. Normally, sorting packages for the next stop takes two to five minutes, but with AI, this process has been reduced to around one minute.
AI can also be used to optimise delivery routes. “This naturally results in cost savings, as couriers can deliver more parcels within the same timeframe,” Bos adds.
Such optimisations often go hand in hand with sustainability. AI can also assist in determining the most eco-friendly delivery route. Even though many delivery vans are now electric, there is still room for improvement to further reduce CO₂ emissions.
“AI enables the analysis of data from different vehicles and routes to select the most environmentally friendly and cost-effective option,” says Bos. “Many delivery companies are already making use of this technology.”
Customers also benefit, as optimised routes lead to more precise delivery slots. Courier company DHL has been using AI for some time to provide customers with increasingly accurate delivery windows via an online platform.
“When the courier is estimated to be just twenty minutes away, the customer receives a notification with a more specific time window,” Bos explains. “The customer can even make last-minute changes, such as opting to have the parcel delivered to a neighbour.”
This offers two key advantages. First, it improves the customer experience – there’s no need to miss a delivery just because you’re stuck in traffic or a work meeting runs over.
Second, couriers encounter fewer failed delivery attempts. “As a result, they need to make fewer second delivery attempts,” says Bos. “And this, of course, has a positive impact on both costs and the environment.”