Consumers are increasingly turning to e-commerce as their behavior and buying habits are evolving daily. So, the need for speedy order fulfilment and distribution has become the new norm. In fact, the growing demand for e-commerce and rising consumer expectations have placed additional pressure on retailers to expedite delivery without increasing costs. This has brought renewed attention to increased efficiency and reduced costs to remain competitive, thus leading to the evolution of the concept of ‘Last-Mile Delivery.’

Last-mile delivery, also known as ‘doorstep delivery, is a complex and expensive part of the consumer journey. It refers to the transportation of goods from a warehouse or a distribution center to their final destination, which is the customer’s doorstep.

Last-mile delivery: A smart option

The goal of last-mile delivery is to enable brands to get their products to consumers quickly and cost-effectively, aiming to maximise customer satisfaction while lowering business costs. As today’s consumers are becoming wary of late deliveries, they require adequate order tracking systems.

However, missing, or damaged goods act as barriers, thus, to improve customer satisfaction, last-mile services need to focus on speed, timely delivery, and accuracy. With innovations in technology, companies can overcome these challenges, while making these deliveries cost-efficient and profitable.

Fundamental shift in consumer behavior

With the rise in on-demand shipment through omni-channel modes and digitally advanced supply chains, modern last-mile strategies are becoming more crucial to customers and shippers. According to a report by Capgemini, 59 percent of consumers purchase items online when they need them or on demand, rather than waiting until the weekend to purchase in-store. This potentially indicates a fundamental shift in the decades-old consumer purchase pattern.

This shift in behavior can also be seen in the type of products being delivered. Earlier, the only items that could be brought to a person’s doorstep were food, clothing, groceries, and other necessities. But now, fuel is another product to reach its end consumers through doorstep delivery.

Innovations in last-mile delivery segment

The last-mile delivery ecosystem will continue to thrive in India while gaining importance and significant momentum. With the expansion of digitisation and customers turning digital-first, a boom in the e-commerce sector, and the rise in online shopping, the potential for last-mile delivery is growing in India.

There are a lot of innovations and technologies emerging in the sector which support last-mile delivery for seamless experience. The use of electric vehicles, hybrid or automatic vehicles and drones can help reduce emissions, labour costs and cost-effectiveness. IoT-enabled services and digital systems such as GPS tracking, telematics and geo-fencing can improve fleet management.

With intelligent route mapping options, companies can save a lot on transit cost controlling carbon footprint. Also, adoption of various technologies like apps can help streamline delivery schedules, while considering multiple factors such as day, traffic, weather, location, and mode of transport required.

Potential for last-mile fuel delivery

Doorstep fuel delivery began as a curiosity, but it soon gained traction due to rising demand and increased convenience. Fuel delivery operators can efficiently cater to the increasing needs of their customers by focusing on a holistic last-mile delivery strategy that includes smart technology, an innovative operating model, efficient workforce management and greater customer collaboration. Thus, retailers should ensure that the last-mile delivery system is optimised from all senses, whether it is safety or speed of delivery.

Not only this, but fuel delivery companies, with the use of automation technology, and analytics, can also help you save money by recognising unnecessary usage. Following this, we will reduce our carbon footprint and achieve carbon neutrality by delivering fuel in full tankers rather than half-empty trailers. Further, the last-mile fuel delivery is convenient as there is no need to bulk up on fuel inventory and the customer can order as per their requirements. Lastly, doorstep fuel delivery helps reduce dead mileage by delivering the fuel at the required site, as different people do not have to travel to and from.