However, "last mile" logistics also represents the greatest challenge, accounting for over half of total transportation costs and encountering numerous barriers, particularly in large urban areas.
Major Challenges in "Last Mile" Logistics
One of the most significant issues with "last mile" logistics is its high operational cost. According to international research, the last stage of the supply chain accounts for approximately 53% of total logistics costs. The primary causes are the complexities of optimizing manpower, fuel usage, and infrastructure. In Vietnam, logistics companies face additional hurdles operating in major cities like Hanoi and Ho Chi Minh City, where frequent traffic congestion poses consistent delays. Delivering goods to the correct address on time amidst crowded roads requires precise and skilled coordination.
Moreover, rising customer expectations add to the pressure on "last mile" logistics. Today's consumers not only demand fast delivery but also expect precision and convenience, including flexible delivery time slots and post-delivery support. Even minor errors, such as delayed shipments or incorrect addresses, can lead to negative reviews, directly impacting a brand's reputation.
Innovative Technological Solutions in "Last Mile" Logistics
In response to these challenges, adopting technology in "last mile" logistics has become an inevitable trend. One of the most advanced solutions involves using drones and delivery robots. Major corporations like Amazon and JD.com have pioneered this model to provide quicker access to suburban or geographically challenging areas. Drones not only reduce delivery times but also help save on long-term transportation costs.
Additionally, electric vehicles (EVs) and eco-friendly transport methods are gaining traction. Large Vietnamese firms such as GHTK and GHN have begun integrating EVs into their delivery fleets, reducing fuel costs while aligning with environmental sustainability goals. Furthermore, GPS technology combined with artificial intelligence (AI) has yielded remarkable results. AI helps optimize delivery routes, minimizes time and costs, and provides accurate delivery time predictions, enhancing trust among customers.
Additionally, electric vehicles (EVs) and eco-friendly transport methods are gaining traction. Large Vietnamese firms such as GHTK and GHN have begun integrating EVs into their delivery fleets, reducing fuel costs while aligning with environmental sustainability goals. Furthermore, GPS technology combined with artificial intelligence (AI) has yielded remarkable results. AI helps optimize delivery routes, minimizes time and costs, and provides accurate delivery time predictions, enhancing trust among customers.
Trends and Future Potential of "Last Mile" Logistics
The future of "last mile" logistics promises to remain a vibrant field, with numerous innovations on the horizon. Automation will dominate, with increasing involvement of autonomous systems such as self-driving robots and unmanned solutions. These developments not only reduce operational costs but also significantly enhance delivery efficiency in scenarios demanding high-speed execution.
Flexible delivery models, such as same-day or time-slot deliveries, are expected to grow rapidly to meet the increasingly diverse needs of customers. This effort aligns with businesses' strategies to offer personalized experiences and strengthen consumer loyalty.
Furthermore, big data and AI technologies will be more deeply integrated into operational processes. By leveraging data from shopping behaviors and delivery histories, companies can make accurate demand forecasts, optimize warehousing, and improve delivery routes. These innovations not only enhance customer experiences but also enable businesses to maintain competitive advantages.
"Last mile" logistics is reshaping how businesses engage with markets and consumers. Amid increasingly complex challenges, innovation and technology adoption are the keys to optimizing operations and boosting customer satisfaction".
However, innovation involves more than just technological investments; it requires a deep understanding of the market and consumer needs. Developing sustainable solutions from eco-friendly transport options to flexible delivery services enables businesses not only to meet current demands but also to build future advantages.
Looking ahead, "last mile" logistics is not merely about cost or speed. It presents an opportunity for businesses to foster strong relationships with customers, creating seamless shopping experiences and exceeding expectations. In an age where convenience and personalization are increasingly valued, "last mile" logistics will continue to play a decisive role in every business's success.