Logistics Firms Shift Focus to Cost and Speed in Last-Mile Delivery

In a paradigm shift for the logistics industry, cost and speed have emerged as the top priorities for firms engaged in last-mile delivery of goods, surpassing previous considerations of cost and satisfaction. This revelation comes from the latest Last-Mile Trends Report 2024, unveiled during ‘The Last Mile Leaders Event,’ jointly organized by technology platform FarEye and Microsoft this week.

Kushal Nahata, Co-Founder, and CEO of FarEye, said, “In last-mile delivery, the top priority now is cost and speed. The needle has shifted from cost and satisfaction to cost and speed.” He further predicted that within the next five years, autonomous drones would handle 30 percent of urban deliveries, significantly reducing delivery times and costs.

Based on insights gathered from over 300 leaders across five continents, representing companies with a combined revenue exceeding USD 100 billion, the report offers a comprehensive overview of the evolving landscape of last-mile delivery. Notably, over 50% of participants stated that they currently deliver goods the same day or the next day, indicating a growing emphasis on expedited delivery services.

Furthermore, the report highlights that 80 percent of supply chain leaders prioritize measuring the cost of delivery. To foster innovation in the sector, FarEye has launched the ‘last-mile innovation nexus’ initiative, aimed at helping startups raise funds and receive mentoring from global experts in the logistics domain.

Gautam Kumar, COO & Co-Founder of FarEye, explained, “The initiative serves as a launch pad for startups to secure transformative partnerships. It is exciting to witness the surge in the adoption of AI, robotics, and embedded data analytics, all aimed at enhancing the efficiency and effectiveness of logistics operations.”

The Last Mile Leaders Event brought together over 40 supply chain experts from more than 20 countries, representing diverse industries including retail, logistics, postal, consumer packaged goods (CPG), and pharmaceuticals. The participants explored the transformative potential of technology in driving cost reduction in the logistics sector.

Highlighting the imperative of sustainability in logistics operations, Kushal Nahata emphasized, “With urban delivery traffic projected to increase carbon emissions by 32 percent by 2030, prioritizing sustainability is non-negotiable.” He noted the surge in electric vehicle adoption and government initiatives like the FAME scheme, reflecting a visible shift towards greener logistics practices in India.

“As industry leaders, we must place sustainability at the forefront, meeting environmental and stakeholder expectations,” Nahata concluded. “It’s clear that sustainable logistics isn’t just a choice; it’s our collective responsibility and competitive advantage.”

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