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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
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.
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
Conclusion