Last Mile Delivery Trends to Watch Out for in 2023

From 2023 to 2027, the last-mile delivery industry is anticipated to expand by $165.6 billion at a CAGR of 15.62 percent. The market is influenced by a variety of variables, such as the expanding global e-commerce sector, high-end goods and product delivery services, and a substantial number of warehouses.

Every successful brand’s future growth depends on how it develops its last-mile delivery based on the major trends. There is a growing need for an effective last-mile delivery management system as internet purchasing becomes more popular. We’ll look at how technology is altering delivery processes and how to deal with problems facing the sector.

As 2023 approaches, it appears that things are gradually returning to normal as people enthusiastically make purchases, mostly from the comfort of their homes. In 2023, a number of trends will affect how deliveries are made. One of them is the expanding use of technology to increase productivity, save costs, and improve customer experiences. Businesses will also explore ways to use clean technologies to lessen their carbon footprint. Deliveries will be prioritized for safety and security with delivery management software. Let’s get more information on this! 

Pressure on Drivers to Continue in 2023

Households are ordering an increasing amount of packages to be delivered. The main issues in these areas are bad roads, ambiguous addresses, gridlock, and a lack of comprehensive maps. According to a Boston Consulting Group analysis, the expenditures associated with road congestion in just four Indian cities—Delhi, Mumbai, Kolkata, and Bengaluru—totaled a staggering $22 billion. When there is heavy traffic and customers who are accustomed to receiving their goods on time become upset and phone frequently to check on the progress of their orders, the problem only gets worse.  Customers don’t receive a wonderful delivery experience when drivers are unsatisfied and unproductive. This hinders business growth and causes a loss of client trust. Thus, the goal in 2023 will be to empower and make drivers happy with an optimized delivery management system. 

Huge Omnichannel Retailing Wave

Retail fulfillment was primarily binary for a very long time. The customer had to choose between placing an online order and making a real shop purchase. But because of omnichannel retailing, things have significantly changed today. Businesses who want to offer their customers smooth purchasing experiences must integrate all available channels, which is known as omnichannel retailing. One option is for a consumer to order their favorite item online and pick it up with the integration of offline and internet channels. 

This is a worldwide trend, as we shall see. The use of omnichannel retail has steadily increased over the last few years in North American retail markets including the US and Canada. According to a NielsenIQ poll conducted in 2022, 86% of US customers are currently making in-person and online purchases. Customers want a seamless buying experience since the lines between online and offline shopping have blurred.

The number of omnichannel retail firms is currently mushrooming in the Middle East. Customers now favor omnichannel shopping more with rising internet access, smartphone use, and a wider range of online goods. 56% of customers in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA), and Egypt begin their shopping trips using search engines rather than merchant websites.

Logistics are the main concern for companies trying to succeed in omnichannel retailing. Businesses find it challenging to reduce turnaround times due to rising logistics costs. Businesses can increase control, speed, flexibility, and cost of delivery by investing in delivery management software. It reduces the unused time required for the goods to transit via intermediaries like the brand mother warehouse and improves the effectiveness of last-mile logistics.

Delivery robots and drones

Numerous businesses are attempting to test robotic delivery methods using a variety of devices, including drones, robots, self-driving cars, and autonomous delivery bots. Amazon, a major retailer, recently spent more than $500 million on Aurora, a maker of autonomous technologies. While some businesses are embracing autonomous robot delivery services, few are also exploring the delivery bot option for last-mile deliveries. However, before they can be used, new-age delivery methods must receive regulatory permission from the relevant local authorities.

E-commerce businesses will need to begin constructing warehouses and hubs closer to the city as customers begin to expect same-day deliveries. Utilizing urban warehouse space is crucial if you want to have quick access to merchandise for client deliveries. This shortens the transit time and makes it simpler to reach delivery people and workers. More retailers are employing physical locations as micro-fulfillment centers and shipping orders from them as fewer customers visit physical stores. 

Prebuilt Software for route planning and optimization 

As businesses adjust to the post-pandemic new normal, contactless delivery is becoming more and more important. Customers are more concerned about their safety now, and they want businesses to take the required safeguards when making deliveries. 

Businesses respond to this trend by adopting contactless ways for proof of deliveries, such as digital signatures or other contactless techniques.

A delivery management system for route planning and optimization assists companies in streamlining their delivery procedures, achieving rapid deliveries, and increasing overall productivity. It is essential for businesses that depend on frequent deliveries because it cuts down on delivery times. By reducing fuel usage and the number of vehicles required for deliveries, this technology also lowers costs.

To make all the deliveries, for instance, a retail business that receives a lot of online orders will employ route planning and optimization software. Delivery management software helps you adjust for things like traffic, the weather, and other variables. Platforms for managing last-mile deliveries automate and enhance delivery coordination, planning, and optimization procedures. Businesses can use both their own fleet and outside logistics providers. 

Robust Investments in Artificial Intelligence (AI) 

In India, last-mile delivery penetration is higher than 10%. Additionally, it predicts that by 2024, the size of India’s last-mile delivery business will reach $6-7 billion. From 1.36 billion shipments in 2020, the total number of e-commerce shipments will increase to 5 billion by 2025. The last-mile delivery is anticipated to receive further support in 2023 because to India’s private equity and venture capital investments in logistics technology, which totaled over $1.45 billion with 34 agreements in 2021.

For more than half of the companies, the biggest obstacle to offering last-mile delivery services is the cost of delivery. Businesses want to boost their investments in AI technologies to make the last mile cost-effective and to increase revenues from it. D2C firms are eager to invest in last-mile delivery solutions to fill the gaps between local warehouses and customer doorsteps. Software as a service (SaaS) offerings have emerged as a boon for companies looking to increase the convenience, adaptability, and sustainability of their direct-to-consumer (D2C) presence. Therefore, 2023 will be a year in which D2C brands improve last-mile deliveries and broaden their D2C presence. 

How Quickorders Can Help With Last-Mile Deliveries?

Urban warehousing, real-time tracking, self-driving cars, environmentally friendly delivery techniques, and so forth are major trends coming your way. Major adjustments are being made in the last-mile delivery sector to enhance customer satisfaction and expedite logistical processes. To be competitive this year, businesses need to stay up to date on these trends and make investments in cutting-edge delivery management systems.

Quickdelivery management software is committed to offering the greatest last-mile delivery services and is at the forefront of these advancements. The team at Quickworks has the right tools and knowledge to handle your delivery demands, regardless of how big or little your company is. 

Keep ahead of the competition by speaking with Quickworks experts today.