Yash Jain founded NimbusPost, the third-largest tech-enabled logistics platform in 2018. One of the young entrepreneurs in the country, his passion at age 25 is building products that can simplify businesses. With expertise in Marketing, Tech, and Automation, he is the driving force behind all theTech and Business operations at NimbusPost. By creating this advanced shipping platform, Yash empowered SMEs and large enterprises to streamline their end-to-end logistics operations at the most economical prices.
Ever since the COVID-19 pandemic, disruptions have snuck into every business across sectors. Amid the chaos, the development of new-age technologies such as artificial intelligence came as a blessing in disguise and altered our lives and working conditions. Owing to this fact, every business across sectors has adapted the online route to support their customers’ delivery. In this scenario, the logistics industry has become one of the major beneficiaries, especially in last-mile delivery, or the final stage of the delivery process.
The movement of goods from the point of transportation to the delivery location is referred to as last-mile delivery. It is also regarded as the most significant aspect of logistics because it has a direct impact on customer satisfaction. According to an IBEF report, the Indian last mile delivery market is expected to reach $6–7 billion by 2024. Along with this, they play an essential role in the overall logistics ecosystem, accounting for up to 50% of total shipment delivery costs.
Ways AI Transforming Last Mile Delivery
With the help of cutting-edge technology, automation, and analytics, the pandemic has driven the logistics sector to new heights and vistas by enabling seamless deliveries. With that in mind, here are five ways AI is transforming last-mile delivery services globally.
SaaS Platform Enhancement
SaaS technology is rapidly evolving due to advancements. Intelligent and flexible SaaS platforms achieve end-to-end visibility, essential for last-mile deliveries, and flawless coordination between multipoint pickup and delivery locations. Thanks to technological advancements like AI, blockchain, and big data, this is now possible.
Thanks to cutting-edge technology and artificial intelligence, allocation regulations have become a critical part of every logistic business. Making strategic decisions about micro-warehousing, establishing dark stores, sorting facilities, manpower, rider tie-ups based on pin codes, demand and supply, as well as other issues is no longer a time-consuming process. Hence, with the aid of technology and artificial intelligence, last-mile delivery and end-to-end visibility is maintaining the supply chain robust and adaptable.
Automation in the Environment
Businesses across industries are incorporating automation into back-end processes such as sorting and picking, and the FDA is moving toward automation. The procedure may eventually help with quick last-mile deliveries, endangering human lives. Automation aids businesses in overcoming problems by eliminating mistakes made by people, pointless delays, and risks to human life, ultimately speeding up the process. Aside from warehousing automation, some logistics partners have begun limited-area drone deliveries to improve last-mile delivery.
Inventory with Real-Time Insights
Suppliers can forecast the demand and supply curve and provide inventory with up-to-the-minute information on orders placed and canceled. The technology in place makes the last mile run more efficiently. The logistics team now has access to information about orders placed and revoked from the point at which an order is picked up from the seller until the last-mile delivery to the customer. All thanks to established technologically enabled software that also helps with cost optimization.
Cost-effectiveness and increased skillfulness
At its most basic, AI reduces the need for human intervention while also speeding up a variety of processes. Of course, increased efficiency allows a company to be more productive, lowering the cost of completing a task. Nowadays, customers demand cheaper, faster-shipping options, so businesses must find ways to cut costs in order to take less of a hit. By implementing AI and automating various processes, a business can empower fewer people while lowering costs. Companies have been able to reduce their shipping and logistics costs by using AI’s predictive capabilities and employing fewer people. They use these capabilities to determine how they can improve the efficiency of their processes and effectively do everything most cost-effectively.
With the advancements, AI has helped businesses in a variety of ways, and it will only improve as time passes and companies become more aware of its capabilities. The possibilities are endless, the logistics industry will undoubtedly look very different in the coming years.
In a nutshell, artificial intelligence and other tech solutions have brought efficiency, advancement, and convenience to the logistics sector, allowing unprecedented growth, especially with last-mile delivery.