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Topic: Elaborate and Find Solutions For Last Mile Delivery Problems For E-Commerce Platforms in India

The document discusses problems with last mile delivery for e-commerce platforms in India and potential solutions. It notes that last mile delivery accounts for 30% of supply chain costs and is the most inefficient part of the process. Challenges include high failed delivery rates, traffic issues, and inaccessibility of remote locations. Potential solutions proposed are customer pick-up, third party logistics, delivery through retailers, crowd-sourcing, and future applications of technologies like AI, automation, analytics, and automated delivery mechanisms like drones. Selecting the right last mile distribution model and collaborating with last mile delivery partners are seen as opportunities for logistics service providers.

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Abhishek Yadav
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98 views2 pages

Topic: Elaborate and Find Solutions For Last Mile Delivery Problems For E-Commerce Platforms in India

The document discusses problems with last mile delivery for e-commerce platforms in India and potential solutions. It notes that last mile delivery accounts for 30% of supply chain costs and is the most inefficient part of the process. Challenges include high failed delivery rates, traffic issues, and inaccessibility of remote locations. Potential solutions proposed are customer pick-up, third party logistics, delivery through retailers, crowd-sourcing, and future applications of technologies like AI, automation, analytics, and automated delivery mechanisms like drones. Selecting the right last mile distribution model and collaborating with last mile delivery partners are seen as opportunities for logistics service providers.

Uploaded by

Abhishek Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Topic: Elaborate and find solutions for Last Mile delivery problems for E-commerce platforms in India

The growth of Indian e-commerce has been remarkable. Millions of packages are ordered and delivered every
day, a feat never thought achievable even 10 years ago. But there are certain glitches and problems in delivery
of these goods which reduces the overall efficiency of E-commerce delivery network.

E-commerce Delivery Network


First Mile Logistics Fulfillment Processing/Sorting Line Haul Last Mile Delivery

What is last mile delivery?


Last mile delivery refers to the final step of the delivery process from a distribution center or facility to the end-
user. Although the name implies it is the final mile of delivery, but actually last mile delivery can range from a
few blocks to 50 or 100 miles. The last mile of the entire supply-chain adds up to about 30% of the cost.

While the importance of the last mile in ensuring success is undeniable, the challenges in making it optimally
efficient are many. Despite being the most important, it is the most inefficient leg of the chain. Logistic Service
Provider as well as customers have concerns regarding the same.

1. Problems faced by customer


• Cost of delivery (if chargeable)
• Security concern in case of prepaid orders (especially in remote areas)
• Damaged parcel received
• Speed (Same day/next day) delivery options unavailable for most of the products
• Lack of flexibility of re-scheduling of delivery

2. Problems faced by Logistic Service Provider


• High failed delivery rates
• Fluctuating volume and volume density
• Order cancellations/Return orders
• Urban delivery becomes difficult with navigating traffic and parking regulations
• Inaccessibility to remote locations (Rural areas)
• Communication barrier with customer during delivery of parcel
• Skill development gap of delivery partners
• Mismatch between person who ordered and person who receives the item

To address these problems, we must shift our focus from traditional last mile delivery operations to new
business models to optimise cost and time efficiencies for last mile delivery.

1. Customer Pick-up
2. Third Party Logistics
3. Delivery through retailers
4. Crowd sourcing

These models have already been adopted in other countries and is yet to be conceptualised according to Indian
demographics. Further, a host of developments involving Artificial Intelligence (AI), automation (Bots) and use
of analytics seem likely to solve problem of last mile delivery.
For a Logistics Service Provider, to convert last mile delivery challenges into opportunities, the most important
step is to select the Right Last Mile Distribution Model. Following are some opportunities for the LSP’s

1. PUDO (PickUP DropOff) Centres - 3PLs (Third Party Logistics) can tie up with local retailers like grocery
stores to act as pick up and drop of points for shipments. Such tactics will enable the players to expand
their reach to pin codes where they do not have direct coverage.

2. Secured Lockers - Logistics companies can start providing a parcel locker facility which houses secure
lockers at strategic locations, where a customer can receive e-commerce parcels and collect them as
per convenience within a given time-frame.

3. Post Offices/Courier – Post offices/couriers can be a convenient mode of last mile delivery. We can
leverage their expertise in local area navigation. Companies can get their online orders to customers
faster, and customers can get their items on desired address at the desired time.

4. Digitisation of addresses – It aims to align physical addresses with modern technology and develop a
new age addressing system for the country. It should also be interlinked with google maps to identify
exact location in case entered address is incorrect. It leads to reduction in transit time, lesser number
of delivery attempts, lesser customer-initiated returns and improved accuracy of last mile delivery.

5. Efficient route planning – Equipping delivery partners with dynamic route planning tools will help him
to have effective route planning for proper vehicle utilisation.

6. Collaboration with Last Mile Delivery Services Partner (NOW Delivery) – It will help them to extend
the reach and delivery capabilities of LSP’s

7. Training of Delivery Partners – A structured training programme must be initiated for educational and
skill training of delivery partners.

8. Application software updation – Provision to enter the contact information of the intended receiver
and communication being sent to ordering customer and intended recipient. Also, a better solution to
request information about the 2nd receiver such as trusted neighbour

9. IOT (Internet of Things) - IoT facilitates availability of key parcel information such as parcel contents,
parcel location in the supply chain and parcel arrival. It connects various technical devices (like vehicles,
loading and unloading equipment, etc.) to one another through sensors installed on these devices,
which enables procuring real-time information of various critical parameters such as temperature, filing
rate, etc. However, data privacy is a key concern, which needs to be guaranteed for last mile.

10. Automated Delivery Mechanism (In Future)


• Drones – Unmanned vehicles that run on battery and fly through air to deliver packages
• Pickup towers – Automated pickup towers in designated areas from where customers can
collect parcels without any human intervention
• Driverless vehicles – Key mode of transportation for the future but they are expensive and face
regulatory hurdles in implementation

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