This document discusses how technology can help solve challenges in last mile delivery. It describes how e-commerce has increased delivery demands and how the last mile is often the most costly and inefficient part of the supply chain. It then summarizes several technologies that can optimize last mile delivery, including route optimization software, warehouse management systems, crowdsourcing delivery apps, artificial intelligence, autonomous delivery robots and drones, smart lockers and mailboxes, and IoT sensors to provide real-time parcel tracking. These technologies aim to streamline fulfillment, improve efficiency, and enhance the customer experience of last mile delivery.

1. USING
TECHNOLOGY TO
SOLVE LAST MILE
DELIVERY
CHALLENGES
BY: LAURA OLSON

2. As supply chain trends come and go, this is a revolution. According to industry
experts, Amazon reportedly has had an overwhelming effect on the buying habits of
consumers. The supply chain and logistics industry has been turned upside down
by ecommerce omnichannel buying trends.
With online sales soaring and brick
and mortar retailers looking for new
ways to get goods delivered to
consumers faster so that they can
compete with online retailers, there
are tricky problems to solve.
Consumers report that they give
great consideration to the customer
experience: the speed, accuracy and
quality of the on time delivery
process is crucial to their
satisfaction.

3. Essential to today’s e-commerce and omnichannel supply chains across North
America, last mile logistics enables shippers to get goods into the hands of
impatient consumers using a variety of optional methods and means. The last
mile of the supply chain is typically the most costly, problematic and inefficient.
Delivering to residential consumers as compared to businesses is inherently
less efficient.

4. This is because shipping carriers
are typically delivering individual
packages, frequently to low density
areas. When the consumer is
not at home, often additional
delivery attempts need to be
made. For many years,
shipping carriers have tried to
optimize last mile delivery
service. It has taken creativity,
technology and a trend towards
the gig economy to craft an
array of solutions to the variety
of challenges that this presents.

5. No matter the situation, there are challenges in last mile logistics for both
rural and urban areas. Delivery services in urban areas often face traffic, road
closures and accident delays and parking may be problematic. This is
especially troubling when it comes to delivering large, heavy or cumbersome
goods to the door of consumers. Security is also a typical concern. Rural
deliveries have their own unique problems due to lack of delivery density,
added fuel costs, transportation time and other factors. Add to this: recent
constraints from a supply chain labor shortage and the expectation of consumers for
fast, free delivery and there is a major puzzle to solve.

6. Retailers are looking for innovative solutions to the home delivery dilemma.
Take heart, help is on the way. Technology can play a vital role in
streamlining order fulfillment and delivery. Whether retailers choose to
outsource their needs to a 3PL, traditional shipping carrier such as USPS,
FedEx or UPS or take advantage of the trend in crowdsourcing, technology
can make last mile delivery less challenging.

7. From mobile computing
solutions, barcode
scanners and barcode
readers to sophisticated,
agile supply chain software
and artificial intelligence,
technology can help expedite
order fulfillment and deliveries,
provide real time traceability
of packages and help ensure
supply chain operational
efficiencies that help keep
costs down and deliveries
affordable.

8. Using Technology to Optimize Order Fulfillment & Last Mile
Delivery
Whether you are a transportation and logistics services provider, messenger or
courier service or a 3PL that handles home delivery in North America,
implementing the use of technology in your business can pay huge dividends and
enable you to win new business.

9. Transportation Route Optimization Software
Reduces Fuel and Labor Costs
Use route scheduling optimization software to save time and money. This is
especially effective when scheduling routes with dynamic volumes and
changing destinations. Utilizing route optimization software can reduce fuel, labor and
time as well as your carbon footprint. It can also enable you to make the most
effective use of your transportation fleet, allowing you to “do more with less” and
compete effectively with other transportation providers. Route scheduling
software can also help reduce overall transportation costs for home delivery
when used in planning and updating regular delivery routes.

10. Enhance Supply Chain, Inventory and Order
Fulfillment with a Warehouse Management System
Legacy WMS systems, essential for inventory
management, were simply not designed to handle
the heavy transaction volume experienced today
from the huge influx of individual consumer
orders. If your company is in the business of
processing orders (especially if you are
handling last mile delivery), your business would
benefit from using a flexible WMS designed to
handle fulfillment. This sophisticated
functionality enables companies to optimize
operations and inventory management when
used in combination with RF devices. For
enterprise operations, look for real time multi-
location inventory visibility and tracking,
integration with e-commerce gateways, wave
planning and seamless operations with
shipping management.

11. Harnessing the Gig Economy Transportation
Workforce Via Crowdsourcing Apps
The supply chain logistics network in North America is facing a labor
shortage. Today’s worker does not face the same working conditions of those faced by
the previous generation. Gone are the days when everyone worked for one
company for years, putting in eight hours a day from nine to five. Today,
millions of workers create their income stream by working on short term
assignments, typically referred to as “gigs”.
In the past few years, the Silicon Valley is pushing the expansion of the “on
demand” gig economy hard. By developing crowdsourcing delivery apps, local,
non-professional couriers and messengers are able to find opportunities to
deliver packages to customers, often same day and in less than an
hour. Examples of this include:

12. Artificial Intelligence and Last Mile Logistics
The vast amount of inexpensive cloud computing power is bringing a dream to come
to life. Marrying the cloud computing power to the massive amount of data is
expediting new solutions involving artificial intelligence. Artificial intelligence
(AI) is “having a moment” in last mile logistics.

13. Previous iterations involving technology were focused on transactional
automation. Today, innovation is focused on cognitive automation, the means of
impacting how decisions are made and executed. These AI solutions learn the
inner and outer workings of the business. The AI solution then uses this
knowledge to make recommendations in real time. It also makes predictions on
business outcomes and can facilitate autonomous action.
Highly useful for supply chain networks
and last mile logistics, the field of data
intelligence has made considerable
strides, enabling predictions based on
machine learning and simulation to be
delivered directly to shippers. This can
include use of arrival time windows and
confidence intervals. Accurate risk
metrics involving potential shipping
delays can also be provided.

14. Because the speed of supply chain operations and last mile logistics have
increased noticeably in the past few years, supply chain managers need
assistance with optimization and recommendations on a variety of issues. Data
science to the rescue! Utilizing algorithms, the AI solutions are able to
handle demand-supply chain optimization.

15. Artificial intelligence solutions learn over time. This increases the level of
knowledge, confidence in utilization of data for predictions and
recommendations and level of autonomy. The AI system retains records of
all alerts, actions and data. Human executives can then review the
information. After reviewing the data and AI records, the human executive
can decide to make changes, altering factors to achieve a different
outcome. This will be incorporated into the machine learning of the AI
system, enabling it to adapt to these changes.

16. AI is gaining in popularity for supply chain management. Ventures such
as ClearMetal utilize artificial intelligence to enable flexible, automated supply
chains. Harnessing the wealth of Big Data, ClearMetal applies artificial
intelligence technology to interpret events, manage data and apply predictive
intelligence.

17. Because of the fast paced, dynamic nature of supply chains today, companies
need to be able to adapt quickly and make effective decisions with greater
agility. This improves the response time and enables businesses to outrun the
competition.
AI is the next step in the
journey towards achieving
predictive logistics. Today,
3PLs and other companies
that provide transportation
and delivery services or
supply chain management
services, utilize AI to predict
the ETA of parcel delivery to
the doors of consumers and
inland location.

18. Autonomous, Robotic and Drone Delivery Service
Approximately 60% of the cost of deliveries in North America is labor. At the
present time, deliveries tend to be limited by the cost, availability and shifts of
the workforce. In contrast with this, robotic delivery service could, at least
theoretically, be done 24 hours a day. This may not be the case with drone
deliveries, however due to regulatory and operational restrictions in highly
urbanized areas.

19. Drones
Watch out! Drones and robots are coming. Between partnerships such as that
of Mercedes-Benz and Matternet as well as third party logistics providers
including Kenco, that buzzing sound you hear might not be a bee, but a delivery
drone.
Mercedes announced the debut of their concept van which features roof-
mounted autonomous drones as well as a robotic package sorting solution. The
idea is simple. The entire cargo section of each delivery van is designed to pull
out as packages are not loaded individually. Empty vans receive a new cargo
section “cartridge” which contains new packages that need to be delivered.

20. The robotic package sorting solution organizes the parcels and makes their
respective positions know to the robot arm that is inside the vehicle before the
van departs for deliveries. When arriving at a delivery location, the driver notifies
the robotic arm to load the package(s) onto the drone. As it pulls the package, a
battery pack is also retrieved and connected to the drone through a hole in the
delivery van’s roof.
Once package and battery have been successfully loaded, the drone deploys to
its destination. This fascinating use of technology still has many hurdles to
overcome to be cleared for take off (and landing). Between Federal Aviation
Administration (FAA) regulations, local concerns and many concerns, the
Mercedes Vision Van will be in development for some time to come. Stay tuned.

21. Delivery Robots are on the Way
Yes, you heard correctly. The robots and drones ARE coming. In fact, last mile
delivery innovators DoorDash and Postmates have been testing delivery bots
developed by the founders of the highly successful communication
product, Skype, Starship Technologies. Consumers use a mobile app to request
delivery and soon, this six-wheeled autonomous delivery robot brings them their
goods. The Starship Technologies platform engages with specific stores or
hubs in order to handle the delivery details.

22. These self-driving delivery robots are capable of carrying items within a 3 mile
radius within 3 to 30 minutes. Able to maneuver around people and objects, the
last mile delivery journey can be monitored on a Smartphone. To keep goods
secure, the cargo bay section of each delivery robot remains locked throughout transport
and can only be opened by the recipient of the delivery.

23. Thinking Outside the Box of Standard Last Mile
Delivery
One of the vexing challenges with last mile delivery of ecommerce and omnichannel
parcels involves parcel security and deliverability. Unsuccessful deliveries (missed
delivery attempts that result in the need to attempt again to delivery the package) add
additional cost to couriers and last mile delivery service providers. Re-delivery may occur
because no one is available to sign for the shipment, regulations or residential policies that
prevent leaving the package, etc. This wastes time, fuel and labor of transportation and
logistics providers and causes a great deal of frustration for all concerned.
To help alleviate these challenges, logistics innovators have introduced new ways to help
satisfy the needs of both the consumer and the delivery service providers:

24. Parcel Delivery Lockers
Alternative delivery locations and lockers are already in use by companies
including Amazon and United Parcel Service through their UPS Access Point
Program. This program makes it easy for consumers to schedule package delivery at an
established time to a specific UPS Access Point location for quick retrieval. This
provides peace of mind for the consumer, knowing that their parcels are secure
and helps meet their scheduling needs. Package drop off is also available at
these locations. Online tracking using the UPS mobile app facilitates
independence and helps to relieve consumer concerns.

25. Smart Mailboxes
There are Smart watches, phones and other technologies-why not a Smart
mailbox? MailHaven is a smart mailbox that provides protection and tracking
for your packages. The IoT-enabled mailbox helps ensure safekeeping from thievery
and weather and works with a mobile app that provides alerts when the package arrives.
Using the MailHaven mobile app enables the user to track purchases and
receive exclusive deals from retailers.

26. IoT, RFID, Sensors and Smart Technology Provide
Parcel Traceability to the Consumer
From IoT sensors that monitor data including location, fuel consumption and
cornering speed in delivery vans to sensors that measure and monitor the
temperature of parcels, technology is enabling supply chain executives and consumers
to have access to the most expansive array of real time information in history.
The Internet of Things is revolutionizing the supply
chain logistics industry and completely altering
delivery operations. Supply chain operations are
using combinations of technologies including
barcodes, RFID, IoT, Bluetooth and NFC. Used in
combination, these technologies help both
consumers and supply chain operators see across
the supply chain network from the retail store to the
point of delivery. Here is a brief look at some of the
recent technologies:

27. Sensors and Smart Technology
With increased interest in traceability and tracking of temperature sensitive
items, companies are inserting probes and monitoring devices in the packages
themselves. This enables the shipper to know the probe temperature and other factors
including humidity at every step of the package delivery journey.
Today, companies such as ParceLive provide peace of mind for supply chain
operators and customers. ParceLive is a data driven service that takes the data
from sensors and tracking technology for use by its clients and can provide
benefits across the supply chain.

28. Using a postcard-sized device that is inserted into the parcel at the point of
distribution, ParceLive uses GPS and has the capability of monitoring data
including temperature and light (to see if the package has been opened or
not). Ideal for use in tracking high value, fragile and time or temperature sensitive goods,
ParceLive offers a subscription service and enables companies to rent devices to reduce
the expense and risk of implementing a parcel tracking system.

29. IoT, RFID and the Seamless Flow of Data for Last
Mile Delivery
What is IoT and why is it impacting last mile logistics? According to Gartner’s
definition, the Internet of Things (IoT) is “the network of physical objects that
contain embedded technology to communicate and sense or interact with their
internal states or the external environment”. To be clear, everyday devices are
embedded with sensors, network access and computing power so that they can
produce and gather data. These devices are then able to interact with other systems
and equipment without the interruption or interference by humans.

30. IoT devices require much less
human control regarding their
functioning and can process a
huge mass of information. RFID
is also being used across the
supply chain for a variety of
purposes including inventory and
asset tracking and has reduced
need for human
intervention. Unlike barcodes
which need to be scanned. RFID
chips can be used to reduce the cost
of labor and time.

31. RFID Tags
What is RFID? An RFID system is comprised of electromagnetically responsive
RFID tags and RFID readers. Embedded within each RFID tag is unique
information. Attaching an RFID tag to an object such as inventory or goods
makes it possible to track and monitor placement and movement, making it traceable
throughout transport. This has made RFID useful in supply chain logistics,
especially for tracking shipping containers, components used in the
manufacturing process and for other similar purposes.

32. RFID tags utilize mini-circuitry which is identifiable by radio waves. As thin as
paper labels or as large and cumbersome as a keychain, the size of an RFID tag
depends upon the quantity of data strings that the tag can store as well as the distance
from which it can be read. Active RFID tags include their own battery power. Some
active RFID tags also include sensors.
To be read, an RFID tag does not necessarily require “line of sight” as in the case
of barcodes. Instead the readability distance is determined by whether the type
of RFID tag is passive or active. Although RFID readers can be fixed or mobile,
Smartphones cannot be used to read RFID tags as they are in the case of
barcodes.

33. Active and passive RFID tags provide data regarding the goods to which they are
attached. How can you tell the difference between active and passive RFID
tags? Passive RFID tags include an RFID antenna as well as a microchip that
stores data. They draw power from the radio waves that are extended by the
RFID reader and reflect this back to the readers. The reflected wave is captured
by the reader so that the RFID tag and parameters can be identified. Radio
waves are reflected, much like a boomerang. This results in erosion of the
strength of the radio waves by the time they reach the RFID reader, reducing the
readable range to less than 20 feet on average.

34. The readability range of active RFID tags
is typically 100 feet. This is primarily
because active RFID tags have batteries
incorporated within them. This enables
active RFID tags to beam information
toward the RFID reader much as you
would do in using a Smartphone. One of
the most popular uses for active RFID
tags are in monitoring high-value cargo,
packages, assets and equipment in
warehouses, railways and other supply
chain facility yards. Because the
readability range is greater, there is less
need to have as many RFID
readers. This helps to reduce the overall
cost of using RFID.

35. Wide-area RFID technology is now available. A California
company, Mojix specializes in providing IoT platform solutions and innovative
RFID technology to provide increased visibility for retail, manufacturing, oil and
gas, healthcare and other industries and uses.

36. Conclusion:
With parcel delivery and home delivery challenges ranging from
transportation management, real time visibility and traceability of the
retail supply chain, deliverability rates to final destinations, there is a
tremendous need for innovation and affordable technology.
Using these revolutionary technologies including IoT, RFID, AI and more
in fulfillment centers, distribution centers and by delivery drivers will help
ensure cost, time and labor savings and reduce frustration for both
consumers and supply chain operators.

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