“Spiraling” last-mile delivery costs force the pace of innovation
“Spiraling” last-mile delivery costs are forcing retailers to look at solutions such as click and collect, parcel lockers, on-demand services, drones and robots, according to a recent industry study.
In a statement issued on Wednesday (28 March), Frost & Sullivan said that its recent report, “Urban Logistics Opportunities—Last-Mile Innovation”, found that global logistics spending is expected to reach $10.6 trn in 2020, with transportation accounting for the majority at 70%.
Frost & Sullivan added: “About two fifths of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities.”
Vijay Narayanan Natarajan, Visionary Innovation Senior Research Analyst at Frost & Sullivan, said: “Spiraling last-mile delivery costs and changing customer demands are causing retailers to rethink their strategies and look toward new business models such as click-and-collect, locker boxes, on-demand, and autonomous solutions.
“Moreover, the influx of start-ups in logistics has enabled innovative solutions that not only provide value-creation customized solutions for the consumer, but also tackle the inefficiencies currently witnessed.”