Analysis of Last-Mile Delivery Solutions through FMS

Based on the recent reports of Roadie analysis, globally, the last mile transportation is predicted to grow from $30.2 billion to $50 – $55 billion by 2025. The objective of last-mile delivery is to transport an item to the end customer as soon as possible. This has been driven by the crowdsourced delivery market and consumers’ demand in the industries such as e-commerce, food, retail, and many others.  

The COVID 19 scenario has exploded the popularity of the e-commerce industry, and this is because of ordering the necessary items online and having them delivered to your doorstep on the same day; nothing beats it when it comes to convenience. There is no doubt COVID-19 epidemic has produced a new household economy, and there is no doubt that the e-commerce industry will continue to rule for years in the crowdsourced market.

Many retailers were hit by high cost with last-mile deliveries, and as the demand rises, it makes it difficult to satisfy their needs for rapid, dependable, free service. As a result, several merchants have transformed their business into mini-warehouses using crowdsourced delivery alternatives to ease the burden from last-mile delivery challenges.

Understanding Crowdsourced delivery in a simple way: The consumers enjoy the freedom to schedule deliveries depending on their availability. Real-time traceability is possible through GPS or telematic devices in a crowdsourced delivery approach, thus reducing the merchant’s out-of-pocket shipping charges. 

On the other hand, retailers and restaurant owners have recognized the need for home delivery capabilities and grabbed the chance. In the future, the market is expected to continue to grow as per the investment.

As per the survey, 75% of customers continue to rely on the new purchasing even after the COVID 19 is under control. Because they anticipate low-cost or free delivery on the same day and even on shorter delivery days.

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Transportation and Last-Mile Delivery

The exponential rise in last-mile delivery has stepped up the transportation industry over the last few years. The Pandemic has increased the technologically driven service in the transportation sector to provide transparency and supply chain visibility. In addition, Saas-based telematics aids the transportation sector to give a satisfying last-mile delivery through fleet management software. 

The last mile logistics has been focused on eCommerce firms. However, the rising need to fulfill the integration of the omnichannel has compelled businesses to examine their present transportation network capabilities and make modifications as the demand changes in the omnichannel fulfillment.

1.Increased Vision in Vehicle procurement

Purchasing a truck based on the requirement would be impossible before ten years. But, now, choosing the right truck based on the right business is possible by changing the conditions of a last-mile delivery fleet. As a result, we have greater visibility on high demands, and its need for quick delivery increases the volume of orders, delivering through fleets and a good result in ROI. 

With the demand for diversified products, the last-mile fleets can transport anything from refrigerated vaccines, medicines, and fragile things with specialized features needed for today’s world through good fleet management service providers.

2.Intelligent Tracking Technology

The exact status of your product is necessary for the online delivery service. Traceability of the product and transparency of whereabouts about your product like the status of their purchase, whether the product is on the way or reached its final destination. 

When it comes to transportation, GPS tracking, and RFID tags to track the movements of fleets. The vehicle tracking solution will be the best option to handle multiple fleets simultaneously when it comes to multiple fleets. In combination with GPS and IOT devices, RFID can extend RTLS (Real-time Location System) to give transparency once their orders leave the hub, thus easing the customers’ concerns. Even if there is any delay, the software will update the alert to support this functionality.

3. Safe Fuel Management

As the demand rises for last-mile delivery, the more the movement of the transportation will be. As a result, there are chances for the rise of fuel usage. As a result, the changes in expense might be doubled, or the probability of malpractices could be higher. Selecting a fuel sensor with GPS tracking might help monitor where the fuel is filled, generate fuel reports for every trip, and calculate the hours of idle time. 

Opting for good fuel management will help you save fuel, get access to fuel stations across the country, calculate & track how much you spent on fuel expenditure.

Fueling should be simple for your drivers, while reporting and analysis inform you when your existing habits are costing you too much. Your driver can fill up without worrying about receipts or reimbursement, and they can use their smartphones to locate the best on-route alternatives – you get the info and the savings.

4. Reduction in Downtime

Strong telematics combined with fleet management software is vital when keeping your trucks on the roads by minimizing downtime. Do you know how many vehicles face downtime when delivering the orders, which might be avoided by setting reminders?

Well-designed maintenance dashboards might help you become more proactive and have a hold-in your management in fleets. A fleet maintenance program schedules maintenance and eliminates unplanned breakdowns.

5. Accident Prevention

The last mile delivery might be complex; last-minute cancellations, returns happen in the e-commerce industry. Here, reverse logistics comes into play, the transportation of goods increases, and the products need to go back to the respective supply chain. Along with forward logistics, reverse logistics will go hand in hand. The chances of accidents, collisions happen with the rise of vehicle numbers on the road.

Integrating Fleet Dash Cams with built-in GPS in the vehicles helps to reduce collisions by monitoring driver behaviour. In addition, it increases the visibility for the safety of consignment and the driver as well. 

When compared to the expense of a single major accident, the cost of a safety program is little. Telematics, data, and reporting can help you understand driver behaviour, but the data will only be helpful if you follow up with remedial actions and safety education.

6. Data Analyzation

Interpret your vehicle’s data to improve your business strategies in last-mile delivery operations. For that, you must collect the metrics that telematics devices have gathered—reports related to fuel, expense, driver performance, maintenance cost, compliance, and vehicle performance.  

Determining your Key Performance Indicator(KPI) must be monitored for you to govern your fleet fully. Data alone will not offer the answers; fleet partner specialists who can understand and advise on the data are required.


In what way Last-mile delivery can be handled through Fleet Management Software?

  1. Utilization of vehicle capacity 
  2. Real-time consignment tracking 
  3. Insights and analytics
  4. Multi-Stop Route Planning
  5. Digitized Reports on every metrics
  6. Trip Management
  7. Digitized POD

Sushanthi is a Content Writer who wishes to be the voice of brands to project their innovative ideas and stories through her writing skills.