AI & ML Impact Last Mile Delivery in Logistics Industry

How Does AI & ML Impact Last Mile Delivery in Logistics?

AI & ML Impact Last Mile Delivery in Logistics Industry

With global business logistics running fast and spreading wide, delivery of goods in a timely and effective manner is highly crucial. Be it any industry segment, the last mile delivery plays an important role and must be offered special attention. And what better way than leveraging modern-day technologies like AI and ML to make that happen.

Yes, in the era of digitalization and globalization, AI and ML have been instrumental in revolutionizing the last mile logistics for any business. It has been acting as a game changer in increasing the customer experience quotient and matching up to the ever-changing consumer demands.

With AI & ML, logistics has been largely automated, generating advantages like enhanced resource management, delivery mechanisms, cost effectiveness and client satisfaction. Through this article, let us understand how AI & ML have been transforming the last mile delivery process.

What Is Last Mile Logistics and Associated Challenges?

Last Mile Logistics focusses on the transportation of goods and services from a transportation place to its destination that could possibly be the client location. It is one of most crucial parts in the entire logistics cycle since it directly affects the satisfaction and happiness of customers.

The global last mile delivery market was valued at $131.5 billion in 2021, and is projected to reach $288.9 billion by 2031, growing at a CAGR of 8.13% from 2022 to 2031.

There are certain challenges that are associated with this process:

  • Offering fast services with low costs involved
  • Effect of unprecedented factors like traffic congestion, road maintenance etc.
  • Inaccurate view of delivery status causing misunderstanding to client
  • Unavailability of resources to carry the product to the client

A Good Read: Key Best Practices for Adopting Artificial Intelligence in Organizations

How Can AI & ML be Leveraged for Last Mile Delivery?

There are innovative ways in which the technology duo has been contributing towards enhancing logistics and especially last mile delivery:

  • AI-Powered Robots and Use of Robotics

Robotics is a leading technology that is powered by AI, and it has been playing a big role in dispatch, distribution and delivery services. Robots can come out as a big help for daily routine activities and can support complicated tasks without human interference. Especially when it comes to last mile delivery activities, robots can be fast, accurate and bring out high level of efficiency.

There are modern-day drones that can take across huge amounts of load through land and water or can fly around. Through robotics, Radio Frequency Identification (RFID) can implement various warehouse related activities for better production and simplification of tasks that are a part of last mile delivery.

  • Integrated AI into Logistics

AI has gone a level further making its way through logistics operations and workflows. It includes different processes like managing inventory, optimizing routes, enhancing customer service, managing supply chain operations, augmenting delivery operations, ensuring effective and smooth last mile delivery processes.

Chatbots and virtual assistants have been assisting clients, round the clock, with their prompt services using the latest AI based technologies like NLP and ML algorithms. Operations such as automation of order tracking, resolution of client questions, complaint management have become easier. This also helps in using human resources in a lesser manner and depending more on machines.

  • Self-directed Vehicles

The latest tech era is moving towards autonomous vehicles which can enhance the last mile delivery process by affecting parameters like speed, cost, control, efficacy and assurance in a positive manner. It could include self-driving cars, self-driving trucks, drones that could optimize the entire process.

These set of modern-day vehicles can be of great help for managing the costs involved in the entire delivery process. They can integrate well with the fleets and help in scheduling the delivery process in a better manner. The predictive modeling technique can be of great help in evaluating data from the historical information available.

  • Modernized Data Analytics

AI & ML techniques have been revolutionizing data analytics that can be of great interest in last mile delivery processes. These analytical outcomes can help in increasing efficiency and maximizing revenue. There is better performance by drivers, maintenance of fleet, profit driven outcomes, cost effectiveness.

It drills down to in-depth and actionable insight into information that can be used for getting futuristic results. Predictive analytics can help in analyzing trends and comparing the actual vs projections to garner optimum client satisfaction. Last mile delivery processes can benefit a lot from modern-day predictive analytics.

  • Route Optimization Techniques

AI-powered processes are utilized in optimizing routes when it comes to last mile delivery. This helps in giving information about optimum number of vehicles that are needed and the best route possible that can deliver goods in a timely and efficient manner. This helps in managing resources in a better manner with least manual efforts and detailed vision into the entire system.

  • Computer Vision Systems

The brain behind the vision system is the computer that is empowered by AI & ML technologies. The algorithms ruled by the technology are leveraged to go in for actions based on their business circuit. It can help in different segments like identification of damage, condition of goods, colors, patterns etc.

  • Utilizing Last Mile Delivery Data

AI & ML algorithms can be of great value in analyzing and harnessing bulks of data belonging to a varied sector of industry segments and geographies. Data that is being scrutinized could belong to different categories – structured, unstructured or semi-structured. The algorithms are well-tuned to recognize the type of data and act accordingly.

Good Read: LLM In Logistics Industry

Summing It Up

As eCommerce business expands and globalization increases, the role of AI & ML has a sure shot upsurge in demand all over. Especially for last mile delivery, these technologies have proven their mettle and are now considered almost necessary for effective delivery and route optimization.

As your trusted data partner, at Rigdeant, our tech stack for AI & ML services consists of cutting-edge tools and technologies that empower us to come up with competitive business solutions by optimal use of automation, intelligence, and data.

Our AI & ML taskforce enable industry transformation via the power of data-driven insights, exploding innovation and increasing efficiency. React out to us for any kind of AI & ML service offering and we will be happy to help!


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