This post is part three in the Logistics and Supply Chain Technology 2015-2020 series, with insights from Martijn Graat, the founder of LogisticsMatter
Putting the Smile back in Last Mile
Uber has been making waves in the logistics community for the role they may play in last-mile delivery. And the reason everyone cares is because last mile delivery is a big deal. 28% of a big deal, actually.
About 28% of shipping costs are spent on last-mile shipping alone, a shocking figure when taking into account that .5% of the 7,800 mile shipment from Shenzhen to Chicago could cost almost a third of the full shipping price. And as E-Commerce continues to take off, it’s clear that last-mile delivery isn’t going anywhere.
We’ve recently focused on major technology innovations that will change the world. Joel Clum of Carrier Direct focused on the software side, showing how the data that connects the freight world will change the supply chain. One week earlier, Dr. Steve Brady from Supply Chain Insights shared his, well, supply chain insights with us about augmented reality and it’s impact on the supply chain.
Today we’re privileged to share some insights from Martijn Graat. If you’re online and follow supply chain technology, you’ve probably read something by Martijn. He’s the founder of @LogisticsMatter and the avid blogger behind LogisticsMatter.com, where he religiously covers all things freight.
Martijn’s insights spell out a changing future where last-mile delivery is profoundly impacted by people and vehicles empowered by ubiquitous data sharing and technology.
Logistics and Supply Chain Technology 2015-2020: Martijn Graat
Uber-like services for transporting goods will become common. Both companies and private persons will be able to ship goods using excess capacity in trucks, vans, or cars. And yes, there will be an app for that. And, as with Uber, private persons will move in and start delivery services with their own (self-driving) vehicles, bikes or public transportation. This will mean better utilization of transport capacity, lower cost, and less environmental impact.
Self-driving vehicles will become a reality. The role of the driver will be more like that of pilots in an airplane; only there to act when something unexpected happens that the computer can’t handle. While on the road the driver can handle administrative or customer service like tasks. Trucks will be connected through computers making them fast moving flexible trains on wheels. Self-driving vehicles will increase speed of delivery, efficiency, and safety on the road.
Ship to Person
Next to a Ship to Address, we will see Ship to Person. Goods will no longer be delivered to a predetermined address, but to a location where a person is, or will be. Your phone already holds this information, it just needs to be shared. The more flexible the service of the delivery company, the shorter you need to stay on a set location. Drone deliveries will be perfect for this. It will mean lower costs due to less missed deliveries and, in case of drone delivery, less congestion in densely populated areas.
We highly recommend that you check out Martijn’s writing on his website, which is read regularly by everyone at Freightos. Have interesting insights into where freight and logistics are going? Share it with us and we’ll include it in the next edition.