We like to keep our finger on the pulse of what’s changing in the world of delivery logistics. At the beginning of the year, one of our key predictions centered around the growing trend of retailers investing in their supply chains and establishing in-house delivery operations.
As we hit the halfway mark of 2023, we thought it was time to take stock and evaluate the progress made so far. Let’s delve into the current state of delivery logistics and re-examine our predictions.
Rise of last-mile innovations
Here are a few we’ve currently got our eyes on:
Drones and robots, often referred to as the "final frontier" of last-mile delivery, are taking to the streets, efficiently fulfilling food and grocery deliveries. Retailers continue to invest in this approach to delivery, with Kroger recently announcing its expansion to autonomous fulfillment and delivery in a partnership with Gatik in February.
Retailers taking the wheel
Retailers are increasingly delving into supply chain logistics to enhance visibility and operational efficiency, with Walmart leading the charge. Expanding beyond online ordering and pickup, Walmart has ventured into in-house delivery and introduced the Spark Driver app, enabling independent contractors to earn money by driving for the company.
While some retailers are investing in their own delivery fleets, others are forging partnerships with third-party providers. Collaborations with established delivery services enable retailers to leverage existing networks, expertise, and technology, ensuring seamless and reliable deliveries.
Collaborations in the delivery industry have seen significant expansion in 2023, focusing on optimizing delivery operations and logistics. A notable example is the partnership between Uber Direct, a white-label delivery system, and Bringg, a logistics technology provider, to streamline operations in the UK. By leveraging Bringg's extensive network of external delivery providers, Uber Direct aims to enhance its customer-centric approach and ensure efficient deliveries.
Other companies are looking inward to strengthen their existing capabilities. FedEx, for instance, recently consolidated its various entities under one umbrella, streamlining its delivery and logistics operations. This strategic move aims to enhance efficiency across the company's operations.
What is contributing to these new innovations?
In the past few years, delivery logistics has been reshaped by evolving consumer attitudes and an emphasis on efficiency. Among these attitudes are similar themes:
Driven by a consumer preference, heightened awareness of our planet, and governmental pressures, delivery logistics has taken a more sustainable approach in the past few years.
This shift towards sustainability remains a top priority for consumers, with 50% expressing a preference for sustainable delivery options. Moreover, the exploration of lower costs associated with EVs has further fueled interest in sustainability.
This focus on sustainability has also been a driving force behind other technological advancements, including autonomous vehicles, drones, and the expansion of EVs.
Keeping a customer-centric focus
As always, the customer is at the center of these shifts in delivery logistics. Meeting evolving consumer expectations, delivery logistics are expanding to offer a variety of customer-centric options. These include quicker deliveries, flexible time windows, delivery to alternative locations, and enhanced tracking capabilities to provide customers with greater convenience and control over their deliveries.
Studies continue to reflect the growing demand for reliable, capable delivery, revealing that 70% of consumers will change orders if they are not delivered within 2 days of the order date. The increased pressure to meet consumer needs segues into our final contributor: data-driven insights.
In order to stay on top of changing trends, optimize logistics, and maintain efficiency, businesses must rely on data-driven insights. By investing in delivery services and leveraging technology, businesses are able to build a strong foundation for their delivery operations. Here are 2 tech advancements that companies are investing in for 2023:
- Telematics: These GPS-software tools can be installed in many vehicles to create an interconnected data network that drives efficiency for fleet managers. Telematics are the first step in establishing a self-sufficient fleet.
- Automation: The rapid development of automation and AI reflect that new management software is on the horizon. The global market for automation is expected to hit $265 million in the next 3 years.
Streamline your delivery with Fluid Truck
Ready to streamline your delivery operations and stay ahead of the evolving trends in the delivery logistics industry? Discover how Fluid Truck can help your business thrive. Whether you need reliable vehicles for your fleet or advanced technology solutions to optimize your logistics, Fluid Truck has you covered. Visit our website today to learn more about our innovative offerings or sign up for a business account.