Context
For the past 18 months, the last mile market (equals the most expensive service in logistics) has become a major source of losses for retailers. E-commerce logistics has been historically outsourced to third parties for some years, torn between two businesses with contradictory visions: logistics wanted to lower costs, e-commerce wanted to enhance customer experience. With e-commerce reaching unprecedented volumes, both visions are coming together around a common goal: customer satisfaction. The last-mile market has started to structure itself, with a profusion of companies eager to combine logistical efficiency and environmental performance. An impossible mission?
Key figures
-The last mile represents 30% of a product’s transportation costs.
-Of more than 1.3 billion parcels delivered in 2020 in France, 30% (i.e.,390 million) were not delivered to the right recipient on the 1st delivery attempt.
-60% of customers will not return to a website following a failed delivery.
-Less than 1% of online retailers offer ‘green delivery’ at checkout.
-Only 10% of DNVB include a return label in the parcel
K.P.I.
– Delivery NPS.
– Returns NPS.
Success rate of deliveries on the 1st attempt
– Lost package rate.
– Carbon impact.
– % of customer service tickets related to delivery issues
Legal issues. In the U.K., France, Spain and Italy notably, city government want to reduce urban pollution. This involves reducing the speed of delivery vehicles and creating Low Emission Zones (there were 247 L.E.Z. in 13 European countries by April 2020). Only the least polluting vehicles are allowed to circulate in these zones, i.e., small vehicles, electric fleet and cargo bikes.
Recent facts
Amazon said it is aiming for zero carbon by 2040.
In the U.K., DHL Express targets a 100% electric fleet by 2030.
Colissimo, France’s largest delivery operator, is shifting most of its traffic from D+3 or D+4 to next-day delivery.
Players involved
– Integrated or an outsourced fleet? Regarding last mile delivery, the trend is to work with several logistics partners to improve service levels whilst reducing costs.