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Introduction

 Last mile is a term used in supply chain management and transport planning to
describe the movement of people and goods from a transport hub to a final
destination in the area (Edwards, McKinnon, and Cullinane 2010). Rajadhyaksha
(2009) describes the last mile as a communication catchphrase used earlier in the
telecommunications and technology industry to explain the technologies and
processes needed to connect the end user to a communication network. The last
mile problem poses great difficulties for countries to become part of the
information and knowledge society.
 Competitiveness can be improved through better management of logistics
networks and can lead to the development of new models for different sectors.
The last mile challenge defines different aspects of the solutions to figure out
logistics problems such as build the concepts, manage the requirements of a
changing customers’ demands from supply chain, change industrial policies for
efficient production and movement of goods and services (Neeraja et al., 2014).
 Last mile operations remain the most significant and important component in the
value chain of the postal service business. More often, customers naturally desire
delivery of a sent item in the quickest possible time. Customers are generally
unaware and unconcerned about how the collection point (first mile) and the
intermediate exchange (middle mile) influence the delivery of sent items. In a
quest to remain relevant to the customers within a reasonable profit margin, the
post must integrate dynamic IT offerings with its day-to-day operations. This
would directly influence the overall efficiency of last mile operations.
Last mile solutions

Last mile solutions offer several benefits in the logistics,

A. Time savings: Supply Chain Management interprets and manages manufacturing


and service processes. Routing time can be reduced in the last mile phase.
B. Valuable data control systems: Last mile can use system data, and uses the
necessary information which is required by each process.
C. Security: Signature must accept to the successful delivery. Security becomes
more complex, and smart with logistics and human resources.
D. Energy and environmental effects: It means that the right delivery method can
reduce emissions, and become economically competitive.
E. Customer service level: The characterized service level is based on time windows.
F. Mobility: It means the shipping time and delays are reduced by increasing
mobility.
G. Productivity: Last mile logistic solutions can allow productivity developments.
H. Customer satisfaction: It measures the customer experiences in services/products,
and assessing new markets for services and products that serve the customer's
additional needs.
I. Manufacturing: Logistic issues can be solved where the product is ready. The
manufacturing and service companies are associated with business through the
operation of last mile solutions

Sustainability impact on customer preferences

 One of the articles tried to investigate if E-commerce customers change their


preferred last-mile delivery, when they are provided with additional information
on the environmental and social sustainability impact of the available options.
Last mile challenges

 With penalties for delays in deliveries, adhering to guaranteed ETAs is another


challenge in itself. To add to it, the volatility in demand makes it incredibly
challenging to take decisions on how much inventory to keep, managing
temporary staff and several such factors contributing to overheads.
 It’s not surprising that in many cases, destination grouping/management is a
serious issue. Many brands allocate jobs manually and that leaves ample scope for
human error. Invariably, shipments get missed out on a particular route. In
addition, there is also the challenge of bad address quality, incorrect addresses,
lack of proper signage. These are enough reasons to let the delivery professional
go on a never-ending, tediously long and complex maze.
 Route planning is a necessary evil. It’s mentally taxing, utterly confusing, and is
dependent on multiple variable factors from fuel efficiency to environmental
regulations. But nonetheless, it needs to be done. A key to successful delivery,
one that’s cost-effective and delights customers, is accurate route planning. With
growing pressures of sustainability and managing fuel costs, routing efficiency is
a key component of success in last mile deliveries. Not just the cost component, it
also greatly impacts the delivery experience because it has a direct impact on
ETA adherence. A routing delay or an inefficient routing mechanism can lead to
missed deliveries or slipped SLAs which can greatly hamper customer
experience. While there are several ways to achieve routing efficiency, identifying
which is the best fit for the needs of each organization is a challenge in itself.
With increasing emphasis on same-day deliveries, routing efficiency becomes the
bedrock of fulfilment and this is easier said than done. 
 There is capacity on one side and then there is capability on the other side. To
achieve a fine balance between managing the number of deliveries in a day within
a particular area is a common challenge you would find in the last mile delivery
scenario. This boils down to the following 4 use cases. 

A. Low-Density Short Distances


B. Low-Density Long Distances 
C. High-Density Short Distances
D. High-Density Long Distances 
 Customers are demanding and they generally feel entitled. After all your efforts, if
the delivery timeline is missed due to unavailability of a customer, it would still
lead to a less-than-delightful experience for the customer and thus mitigate the
effect of all your effort in this direction. So, it is essential that you have necessary
checks and balances in place to ensure seamless collaboration and communication
channels between your agents and customers.

 The biggest battle that brands face is timelines. If the timeline is missed, it could
then prove very expensive for brands in both the short and long term. In the case
of food deliveries, some companies cannot charge customers for the delivery if
the guaranteed timeline is missed. Not just that, it also causes damage in terms of
reputation for the brand. Hence, the process of delivery needs to be as robust as
possible to help them fulfill orders in a timely manner. This calls for a lot of
flexibility and agility in the context of delivery management as a process. There
are platforms that can help in this direction solving this specific challenge which
essentially manifests itself in several other forms as mentioned in this post. 

Using Parcel Lockers as a Solution

 One of the articles addressed the use of Parcel Lockers as a Solution to Support
Last Mile Delivery Management in E-Commerce. Parcel Lockers have grown in
popularity over the last few years and are becoming a necessity as more and more
consumers purchase items online. In fact, online shopping has skyrocketed, and so
too have the number of deliveries to multifamily, commercial, and university
properties nationwide. 
Findings

The researches articles establish multiple solutions to the last mile challenges as follows

A. Solution to the last mile challenges includes the web-based DSS for selection of
delivery services has been developed, implemented and evaluated to support
smart e-commerce systems (SESs). This DSS comprises four modules, some of
which provide functional features for intelligent reasoning .The customers of
delivery services are provided with tools for specifying their preferences on
criteria and sub-criteria selections, scoring and weighing scenarios, and delivery
service alternatives to allow the DSS to learn, infer and recommend the best
possible solution(s). The customers and delivery service firm data and historical
transaction data can also be extracted from the web using tools available in web-
data extraction system module. Furthermore, delivery transparency can be
enhanced by providing a traceability system module enabling movement tracking
of the product from a sender to a receiver.
B. One of the most important categories of good practices in current urban freight
transport systems become solutions to rationalize the last mile delivery, through
the use
 Reception boxes, permanently fixed to a wall outside the customer’s home, to
which access is possible using a key or an electronic code
 Controlled access systems, provide the delivery driver with a means of gaining
access to a locked area to leave the goods in; a key may be sealed inside a unit,
which is mounted in a location where delivery staff can access it; the driver enters
an access code into the sealed unit to release the key and open the nominated
delivery location to leave the goods
 Collection points, based on the use of locations other than customers’ homes to
which goods are delivered (the nearest Post Office, convenience store or a petrol
station; often have long opening hours. Goods are delivered by the retailer or their
carrier to the collection point and the customer is informed that their order is
ready for collection. Customers may arrange with the collection point for the
goods to be delivered to their home. Collection points result in fewer delivery
locations and improved drop density
 Parcel lockers can also be successfully utilized in the operation of reverse
logistics, which is a natural consequence of the customer orientation in present
supply chain management, which is of particular importance with regard to e-
commerce. The ability to return goods is one of the key advantages to customers
while making purchases online. Therefore, the utilization of parcel lockers
directly corresponds with the objectives of outsourcing in the context of reverse
logistics

C. Lessons learnt from developed nations are as follows


 Improved route analysis (delivery routing planning tools) and investment in
artificial intelligent dynamic routing decision systems
 Consolidation of deliveries, especially in congested cities, thereby reducing
energy consumption and carbon emission as a result of fewer vehicles on the
road;
 Greener transportation: use of CNG, hydrogen cells and electric vehicles
 New delivery options using temporary lockers for parcels and the Smart Mail
Box through numerous outlet options
 Telecommunication and electronic integrated systems for last mile enhancement
(Short Message Service (SMS), emails, calendar alert, mobile apps)
 Transfer from traditional mail delivery systems to electronic driven innovative
concepts;
D. With respect to sustainability issues customers are willing to wait longer, pay
more or choose a less convenient location, for a more environmentally or/and
socially sustainable delivery. On the other hand, when offered costs benefits,
customers are willing to choose a less convenient location for a more
environmentally- or/and society-beneficial delivery; when offered location
benefits, customers are willing to pay more, for a more environmentally- or/and
society-beneficial delivery and to wait longer for a more society beneficial or both
a more environmentally- and society-beneficial deliver. Displaying the
environmental and social impacts of last-mile deliveries influences customers, and
generally makes them change their initially preferred delivery option, for a more
sustainable one

Conclusion

 The last mile is a term used in supply management and transportation


planning to describe the movement of people and goods from a transportation
hub to a final destination. These are services that include all the last-mile
carriers involved in delivering goods and services within that previous mile.
These are all last-mile logistics solutions. As mentioned above, this generally
means between the last transportation hub (or warehouse) to the final
destination (typically a personal residence).
 This fact means that retailers and logistics companies are now facing an
enormous challenge: to withstand the high costs of last-mile deliveries. The
primary goal is to deliver goods and services to consumers with speed and
cheaply. The purpose is also to keep a high degree of customer satisfaction.
Ultimately, the goal is to save an enormous amount of money and time and a
business profitable and efficient.

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