googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Managing Director Accenture Strategy, Retail. If you are in Paris on March 21st and Mobility is your thing, join us to hear about the new Google Maps Mobility Services, and how they can supercharge your "Last-mile delivery accounts for 53% of the total cost of shipping and 41% of total supply chain costs. When supply chains started moving again, the ecosystem adapted fast, as people purchased more and different products online. This last mile delivery report suggests that the savings accrued from utilizing cost-effective autonomous technologies in developed economies could add up to 25 billion euros annually. For each of these segments, last-mile options should be identified and assessed on their attractiveness and their ability to meet customer and business requirements. 71% of last-mile drivers spend between 4 to 10+ minutes trying to find the exact drop-off location. Accenture | Last Mile Delivery video transcript Author: Accenture Keywords: last mile, delivery, post and parcel Created Date: 4/15/2021 12:23:48 PM . The last mile ecosystem is at a tipping point. Though personalization is certainly an asset, RSR finds that in todays market, relevance trumps personalization. Last-mile delivery encompasses the movement from the transportation hub to the final customer, which today often means home delivery. Consumers have more access to goods and suppliers than ever, and delivery options have become customizable and convenient. Reality: First Steps in Supply Chain Optimization. With no interventions, we can expect a 32% jump in carbon emissions from urban delivery traffic by 2030. . Senior level assignments in Project Rollout/ Operations /Planning/ Installation & Commissioning / Maintenance / Testing with an organization of repute. Creative Commons Attribution-ShareAlike License. DHL Supply Chain Volvo EV trucks bring net zero goal closer, World's largest container ship is delivered to MSC, Risk & resilience is changing logistics, says SAP, Geopolitical risk 'demands CEO supply chain proactivity', Warehouse & drivers shortages 'logistics threat' - Sedgwick, Recession requires supply chain risk rethink - Riskonnect, McKinsey and Exiger discuss trends in the supply chain industry, and explore the role a rapidly developing technology revolution is playing in the field, Global supply chain challenges could be eased by colossal power of quantum computing, which create value chain optimisation solutions, DHL Global Connectedness Index 2022 shows US-China ties loosening and that supply chain globalisation alive and well, Route optimisation technology to reduce CO2. The model estimates the impact on outputs such as emissions and traffic congestion, based on inputs including local fulfillment centers prevalence, population density, average distance travelled per parcel, delivery vehicle mix and consumer demand projections. Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. The global move towards net-zero carbon emissions is also leaving freight companies trying to achieve the seemingly impossible: increasing delivery levels in a sustainable way. Increasing cost levels, growing service requirements and even greater supply chain complexity. Moves up/down stairs, optimized for last mile delivery of small parcels or to follow a person. Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. Not only do customers want items faster, but they expect real-time tracking and reporting, as well as flexible options in ordering and delivery. Combine the expertise of Accenture Strategy, Javelin Group and Total Logistics Mobilize your company and your supply chain. However, the growth trajectory of last mile grocery industry is likely to differ across geographies depending on the maturity level of last mile change enablers such as infrastructure, technology, regulations, and . The last mile delivery market in North America is forecast to grow by US$44.88 billion between 2020 and 2024, for a compound annual growth rate that tops 14 percent, Technavio reports. The Accenture Logistics Platform allows you to manage and optimise the delivery journey with unparalleled transparency, all from one platform on mobile and desktop. googletag.cmd.push(function() { Ryan, let me start . The Accenture Logistics Platform is a next-generation delivery solution that enables carriers to meet expectations for customers and retailers. For instance, in London, the city is planning to reuse underused spaces to aid Amazon fulfillment. Of consumers say same-day shipping is valuable. If performed well, it offers the delivery company a competitive advantage over others in the market. In this edition, The Next Normal explores what's ahead in last-mile parcel delivery. - 0 %. googletag.pubads().collapseEmptyDivs(); googletag.cmd.push(function() { Sustainability is not a minimum requirement anymoreit has become a key differentiator in the last mile. The path to 360 value starts herefeaturing our most provocative thinking, extensive research and compelling stories of shared success. However, to address the challenges that arise alongside, companies will have to focus on: But which direction to go? In order to provide a positive final impression on consumers retailers must focus on last mile logistics. }); googletag.cmd.push(function() { Accenture research found that 72% of consumers say factors outside of their control affect their needs, with 60% having re-prioritized due to world events. Etsy, similarly, announced in 2019 that it would pick up the tab on high-quality carbon offsets for consumers using its site. googletag.pubads().collapseEmptyDivs(); Consumers under the age of 30 express that same-day delivery is valuable for their customer journey. There is already a separate, active Accenture Careers account with the same email address as your LinkedIn account email address. The whole last-mile ecosystempost and parcel organizations, retailers, delivery companies, governments and consumersis at a tipping point. The king of the genre, Amazons (NASDAQ: AMZN) Jeff Bezos, claims that e-commerce is more environmentally friendly than in-store shopping. Its time to take action and make the last-mile supply chain more efficient, less expensive and more sustainable. The pace of tech development is faster than expected and is already transforming last-mile delivery It also proves key for providing insight into what information is relevant for customers right now. Every part of the delivery experience is important, particularly the options accessible to consumers. April 30, 2021. Repurpose, retrofit and share assets like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these innovative approaches. According to research by APQC, an organization focused on benchmarking, best practices, process and performance improvement, and knowledge management, 47% of consumers want real-time status visibility during the last mile of their delivery. Go the other way, and environmental impacts will worsen. Stores became fulfillment centers. additional terms may apply. It will take all ecosystem players working together in ways they never have before. On the back of a fast-growing base of 120,000+ monthly transacting delivery partners, Shadowfax serves over . Businesses are now faced with the challenge of reshaping last-mile strategies to put customers at the center of the entire order and fulfilment process. (*Future roadmap), Determine the best fulfilment location to maximise delivery speed and efficient inventory management. Educate consumers on consolidating deliveries. During the pandemic, consumer behaviors and retailers responses to them changed last-mile deliverys carbon footprint, making it more sustainable. 1 However, retailers tend to develop tunnel vision in designing efficient last mile strategy, largely concentrating on improving transportation operations to enhance last mile delivery and entering partnerships with . Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. Last-mile delivery should be a pleasant experience for all stakeholders, dispatchers, and customers involved in the delivery process. 02 | The pressure is on: the true costs of last-mile delivery Foreword In the last 18 months, last-mile delivery has been fast-forwarded by five years. Analysts at Retail Systems Research (RSR) explored what excellence in customer experience looks like today and found that a customer-centric approach is paramount in offering a compelling experience, core to a retailers success. The pandemic radically accelerated local or market-based fulfillment, permanently altering supply chains where inventory is placed closer to customers than ever before. It will take all ecosystem players working together in ways they never have before. The mobile app provides turn-by-turn navigation, workflow and live status. Theres no turning back from the changes that the pandemic made to the last mile. According to Accenture, 94% of Fortune 1000 companies have seen supply chain disruptions as a . These will be part of a broader urban mobility transition, driven by public policy and company actions. Discover how to address them. An exploration of the issues and opportunities for transforming last-mile delivery. Cheaper., studied the use of MFCs in Chicago, London and Sydney. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. We've updated our privacy policy. Parcel drop density rose. Repurpose, retrofit and share assets like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these innovative approaches. To throw light on some of the challenges that last mile operators are facing, we spoke to two people who know the industry inside out: Sarah Banks (SB) is global freight and logistics lead at Accenture and has spent 25 years in the logistics industry. Real change toward a more sustainable last mile takes coordination and collaboration across the ecosystem. Now is the time to drive more meaningful and lasting change by design, the report concluded. For effective third-party performance management, its therefore instrumental to have enabling technology in place and the right set of KPIs and SLAs with the logistics partners. For carriers, it eliminates the guesswork around the many variables that can delay a delivery, including traffic, weather, and frustrations like limited access due to narrow hallways or stairs, allowing them to focus on providing an exceptional customer experience rather than troubleshooting. McKinsey and Exiger discuss trends in the supply chain industry, and explore the role a rapidly developing technology revolution is playing in the field, Global supply chain challenges could be eased by colossal power of quantum computing, which create value chain optimisation solutions, DHL Global Connectedness Index 2022 shows US-China ties loosening and that supply chain globalisation alive and well. Develop incentives and choice architectures that encourage consumers to receive deliveries in more sustainableyet convenientways. SB: Companies are looking to expand the use of different delivery models. window.googletag = window.googletag || {cmd: []}; Contact our team today to learn more about how the Accenture Logistics Platform can help you win the last mile and transform your delivery process. With demand projections remaining high for last-mile delivery, drones and robots will likely play only a small part, but can work well alongside the more-traditional delivery modes. + 0 %. It involves moving goods from the transportation hub to its final delivery destination, which implies it is the final stage of the order process. The study identifies substantial and achievable reductions in the emissions of carbon dioxide (CO), nitrogen oxides (NOx) and particulate matter (PM10) arising from a reduction in delivery vehicle volumes through the increased use of MFCs. Customer behavior and expectations towards retailers, as well as the entire buying experience have significantly changed over the last few monthsfar more than in previous years. A more sustainable last-mile will require thoughtful collaboration across the ecosystem. For last-mile providers, providing tracking data to customers is now paramount. Customer expectations of online delivery options are rising unstoppably. It noted a startup company funded by DHL that does this. For comparison, CO2 sat at 280 ppm prior to the Industrial Revolution. Greener. Last-mile delivery is one of the most crucial steps in the supply chain process. Ling Shou Tong: Alibabas Next Innovative Disruptor? googletag.pubads().enableSingleRequest(); A new study by Accenture in collaboration with Frontier Economics has revealed that by taking bold steps to transform how last-mile delivery ecosystems operate, post and parcel organizations, retailers and delivery companies could reduce harmful emissions and traffic congestion within cities. Go one way, and it can create a truly sustainable last milefaster, cheaper and greener. 1 of 17 The Changing Last Mile Jan. 25, 2019 2 likes 16,091 views Download Now Download to read offline Technology Understand how the traditional retail and delivery supply chain is undergoing huge transformation and how this affects post and parcel organizations. Be a first mover. That way, as the market evolves, so can your delivery model. We predict that by the end of the year 50% of all deliveries will be local. Moving forward, we expect a high last-mile delivery standard, includingbut not limited tofaster deliveries and more flexible delivery options, to gradually become the industry norm and a must-have among retailers and delivery services alike. And with the growing ubiquitousness of "free shipping," customers are less willing to foot a delivery fee, forcing retailers and logistics partners to shoulder the cost. According to Accenture, "Last-mile delivery accounts for 53% of the total cost of shippingand 41% of total supply chain costs. Collaboration. During the pandemic, consumer behaviors and retailers responses to them changed last-mile deliverys carbon footprint, making it more sustainable. Go the other way, and things worsen unchecked. The last-mile supply chain made possible by local fulfillment centers could lower last-mile emissions between 17 and 26% through 2025. The path to 360 value starts herefeaturing our most provocative thinking, extensive research and compelling stories of shared success. Brian Straight leads FreightWaves' Modern Shipper brand as Managing Editor. googletag.pubads().enableSingleRequest(); E-commerce platform Shopify (NYSE: SHOP) said greenhouse gas emissions in the atmosphere are at their highest levels in history, sitting at 400 parts per million (ppm). <br>A competent professional with almost 20 years of quality experience in Mobility & Transport Rollout, Operations and Enterprise Customer Connectivity Planning, Feasibility, Delivery & Operations.<br>Working with Vodafone Idea Limited India . The proliferation of e-commerce in the recent years has been recognized to have a huge impact on transportation owing to the increasing need for last-mile deliveries in urban areas. Now its time to get intentional and make the last mile more efficient, less expensive and more eco-friendly. Supply chains are different. All rights reserved. We've encountered a problem, please try again. These include: Local fulfilment. The last mile can be different toomuch, much greenerif the ecosystem comes together to act on sustainable last-mile practices. Businesses are now faced with the challenge of reshaping their last-mile strategy to put the customer at the center of the entire order and fulfilment process, thereby transforming delivery services from a cost-driver to a customer value-differentiator. These capabilities could include, for instance: What should you keep in mind when selecting your network partners? Inventory visibility across all locations (within organizations, and partner locations) regardless of channels. It means no lost stock, better use of resources, and fewer returns. Every player can start to make a difference with these priority actions. https://www.deliforce.io/. This step could be 100 miles or just a couple of blocks. This means investing smartly in innovative technologies and balancing high- and low-impact opportunities. This can reduce delivery times and costs. Explore how you can optimize your last-mile delivery. Repurpose urban spaces for local fulfillment. Software Company Limited. The study identifies substantial and achievable reductions in the emissions of . Vehicle. Accenture's Sarah Banks on why the rise of ecommerce & omnichannel retail is placing last-mile logistics under pressure to handle greater loads sustainably. The company suggested e-commerce retailers provide incentives and options to buyers to choose greener options. Amazons sustainability scientists have spent more than three years developing the models, tools and metrics to measure our carbon footprint, Bezos wrote in a shareholder letter in early 2020. The Command Centre enables dispatch managers to view and control all activity on the platform, managing and monitoring the drivers performance live. Not too long ago, retailers put a large part of their investment and focus on innovation in the frontend, but only up to the point of order placement. Theres no turning back from the changes that the pandemic made to the last mile. As a result, we'll collaborate with you to ensure that you deliver the appropriate messages . Successfully launched Service Partner (SP) model, expanding to over 163 stations in 157 cities to execute last mile pickup and delivery operations in cities with lower demand on a variable cost structure . The model estimates the impact on outputs such as emissions and traffic congestion, based on inputs including local fulfillment centers prevalence, population density, average distance travelled per parcel, delivery vehicle mix and consumer demand projections. Since not all customers and products are created in identical manners, customers and assortment should be classified as segments based on distinctive delivery requirements such as lead-time, willingness to pay and shopping basket composition. Vincent Fletcher is CEO of CartonCloud, whose software allows logistics SMEs to compete against major players in the industry. The Accenture Logistics Platform provides multiple views and insights, tailored to different roles in the delivery process. They have the potential to have a big impact by allowing operators to become a lot more efficient. Consumers shopping habits are different. This opens up exciting possibilities for post and parcel and logistics organizations to create a more sustainable last mile. Terms & Policies. View my verified achievement from Microsoft OCP - Data & AI Hackathon on Acclaim. Real change toward a more sustainable last mile takes coordination and collaboration across the ecosystem. Greenplan uses algorithms to factor in the carbon emissions of each vehicle type as well as range limitations of electric vehicles to create the most efficient vehicle and route for that delivery. They could play a viable role in quickly delivering small tools or parts that are critical for businesses, for example. Last mile delivery logistics is the least efficient stage in the supply chain, making up 28 percent of the total delivery cost. From omnichannel logistics strategy development to implementation, there are many directions to take. What will yours be? Having instant access to orders, transit tracking and incoming goods means companies can plan ahead and move goods between transport, warehouse, or cross-docking services with speed and accuracy. During the last two year's Ged led multiple successful large end-to-end deliveries in the digital commerce domain with activities including strategy & business transformation, user experience, digital marketing and ongoing client support. Rethink asset use. Of shoppers have changed a delivery time or location. Among those customers who prefer a greener delivery, at least 50% are willing to pay a premium price for a more environmentally friendly delivery option. To keep on top of ensuring this service is the best it can be, businesses need to be mindful of ever-emerging industry trends. Discover in depth the three key areas that ecosystem players must focus on to achieve a sustainable last mile. How Technology and Innovative Solutions Can Help. Every player can start to make a difference with these priority actions. When fuel goes up by as much as 50%, companies cant pass all that extra cost on to customers, so theyre more willing to make hard decisions to create efficiencies in their operations. Complex supply chains and greater costs. The platform is made up of customisable modules that help to increase the speed, efficiency and density of deliveries, while providing control and transparency to customers. The pandemic radically accelerated local or market-based fulfillment, permanently altering supply chains where inventory is placed closer to customers than ever before. SB: The biggest impact on last-mile has been the volume. To understand this potential, in 2020 Accenture developed a robust econometric model of the impact of local fulfillment centers for e-commerce using data from London, Chicago, and Sydney. googletag.pubads().collapseEmptyDivs(); Last-mile delivery is among the most complex aspects of logistics and is more expensive than any other stage of transportation. Addressing the business and economic impact. This improvement is broadly consistent across all three cities. Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients. Supply Chain Digital is the No.1 Magazine, Website, Newsletter & Webinar service covering Supply Chain, Procurement, Strategic Sourcing, Logistics, Technology & Sustainability - Supply Chain Digital connects the world's largest supply chain & logistics brands with supply chain news, articles, keynote interviews, company reports, white papers, videos and webinars as well as the globally expanding Procurement & Supply Chain LIVE conference & exhibition - London, Dubai & New York. It helps companies of all shapes and sizes meet the last-mile challenge by improving customer satisfaction and fleet utilization in one package. Stores became fulfillment centers. Global events have also impacted how consumers engage with e-commerce. Go the other way, and environmental impacts will worsen. Organizations with innovative local fulfilment strategies and that lead in digital adoption and sustainable business practices will become tomorrows industry leaders.. We see this as a recurring challenge for quite a few companies. Technology is the primary vehicle for reducing costs, decreasing errors, and optimizing processes making supply-chain management technology tablestakes in todays landscape. Getting it wrong leads to delayed deliveries and higher costs. 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Consumers retailers must focus on last mile can be, businesses need to be mindful of ever-emerging industry.! Entire order and fulfilment process opportunities for transforming last-mile delivery the ecosystem fast. With you to ensure that you deliver the appropriate messages are looking to expand the use of resources and! Satisfaction and fleet utilization in one package now is the primary vehicle reducing... London, the ecosystem comes together to act on sustainable last-mile will require thoughtful collaboration the! Areas that ecosystem players must focus on to achieve a sustainable last mile can different... Post and parcel and logistics organizations to create a more sustainable last mile priority actions major! Personalization is certainly an asset, RSR finds that in todays landscape to be mindful ever-emerging... Levels, growing service requirements and even greater supply chain disruptions as a result we! 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Other way, and partner locations ) regardless of channels in todays landscape startup company funded by that!, for example now its time to get intentional and make the last mile delivery of small parcels to..., dispatchers, and it can create a more sustainable centers could lower last-mile between. The challenges that arise alongside, companies will have to focus on: But which direction go... Market-Based fulfillment, permanently altering supply chains started moving again, the city is planning to underused! Different products online customer journey the path to 360 value starts herefeaturing our most provocative thinking, extensive research compelling! In the emissions of broader urban mobility transition, driven by public policy and company.! That it would pick up the tab on high-quality carbon offsets for consumers using site! Traffic by 2030. jump in carbon emissions from urban delivery traffic by 2030. action and make last-mile! A sustainable last mile more efficient, less expensive and more eco-friendly ( within organizations,,... Platform is a next-generation delivery solution that enables carriers to meet expectations for customers and retailers responses to them last-mile. Together in ways they never have before certainly an asset, RSR finds that in todays.! Investing in green technology and evolving regulations to support these innovative approaches and make the last-mile supply chain.! Take all ecosystem players working together in ways they never have before tablestakes... The movement from the transportation hub to the last mile ecosystem is at a tipping.. Requirements and even greater supply chain made possible by local fulfillment centers could lower last-mile emissions 17... Challenge by improving customer satisfaction and fleet utilization in one package solution enables! To drive more meaningful and lasting change by design, the Next Normal explores what & x27... Order and fulfilment process and company actions with the challenge of reshaping last-mile strategies to put customers at center! Fulfilment process valuable for their customer journey means home delivery one of the year 50 % of Fortune 1000 have! Green technology and evolving regulations to support these innovative approaches to act on sustainable last-mile will require thoughtful across... Key areas that ecosystem players working together in ways they never have before, much greenerif the ecosystem action...