Global logistics has been thriving for the past few years due to a surge in e-commerce and international trade, modifying itself as per the demand and supply in present times. The popularity of same-day delivery and express delivery services among consumers has led global logistics businesses to focus more on modifying and updating the conventional logistics norms and adapting to the new-age technology.
As per the market insights of Precedence Research, the size of the worldwide logistics automation market was USD 52.6 billion in 2021 and is projected to increase at a compound annual growth rate (CAGR) of 13.15% from 2022 to 2030, reaching USD 162.5 billion.
Given the influence of automation in logistics and warehouse fulfilment, the complex process of last-mile logistics operations is now being carried out easily by employing cutting-edge technology such as Artificial Intelligence and Machine Learning. Most logistics companies on a global scale have already opted for logistics automation to facilitate express delivery services to their customers.
If you are struggling to operate and overcome complexities in last-mile delivery, this blog will walk you through every important detail about logistics automation, and how it can help you in optimizing your logistics.
What is Logistics Automation?
Logistics automation is the application of technology to streamline and optimize the logistics process. Logistics automation includes a range of solutions that can be used to automate different aspects of the logistics process, from warehouse management and inventory control to transportation management and order fulfilment. By automating the logistics process, businesses can improve efficiency, reduce costs, and improve customer service.
How can Logistics Automation help in Minimizing Last Mile Complexities?
The trend of automation in logistics is continuing to grow, with many companies looking for ways to minimize last-mile delivery. One way to do this is by using robotics and other automated technologies. By automating the process of picking up and delivering packages, companies can reduce costs and improve efficiency. Additionally, automated systems can help to ensure that packages are delivered on time and to the correct address.
Another way to reduce last-mile delivery costs is by using digital tools to track packages and route them more efficiently. For example, companies can use GPS tracking to monitor where their packages are at all times. This information can then be used to optimize delivery routes, ensuring that drivers make the most efficient use of their time. Additionally, digital tools can be used to schedule deliveries in advance, which can further reduce costs.
The benefits of automation in simplifying the process of last-mile delivery
- Handles Reverse logistics
Providing the best customer satisfaction decides whether their loyalty would stay with your brand or not. Some buyers might frequently return items for no apparent reason. Managing such clients is a significant problem. In this instance, an out-of-date return process would result in inefficient delivery, superfluous inventory, and higher operational costs.
Automation systems offer real-time return information, particularly for people who return goods inaccurately. The supply chain becomes visible due to these insights. Logistics companies can plan and operate more strategically in their last-mile logistics operations as a result of this visibility.
2. Optimize and plan routes for last-mile logistics
Manually planning the delivery routes takes a lot of effort and resources, and the process is also time-consuming. The last-minute orders are taken into consideration by route planning software, which also automatically adjusts the schedule. It delivers better outcomes than manual routing techniques, increasing load, delivering more packages, and reducing transportation costs.
Route automation software can deal with two major things:
- Updated and real-time delivery alerts to the customers
- Instant customer review regarding quality of services
Both in normal conditions and emergencies, artificial intelligence (AI) and automated solutions enhance planning and provide options for accelerating workflows and cutting expenses. One such possibility involves the smart use of GPS data, which can aid in route optimization as well as the resolution of the loading dock issues that many businesses face.
3. Smart Warehousing
With increasing e-commerce activities and demand for express deliveries, warehousing and fulfilment service providers are operating under a load of fulfilling bulk orders, along with maintaining efficiency in last-mile delivery. The use of automation software in warehouses can address some of the major issues.
The demand for human labour is reduced by smart warehouses, and the performance of human warehouse associates is optimised, which helps keep operating costs down. Smart warehouse solutions can almost eliminate picking errors. Automated picking techniques and collaborative mobile robots cut down on order-picking time and spare warehouse workers from extra manual labour.
Apart from these benefits, the hub and spoke model in logistics can optimize last-mile delivery operations by cutting off the excess human labour and cost of shipping. Planning delivery routes efficiently is made easier by the hub and spoke design. Logistics managers can benefit from digital route planning and optimization if they use last-mile delivery software and adhere to this kind of strategy.
To determine the most effective delivery routes, the software takes into account current traffic conditions, customer delivery preferences, the location of the delivery, and other restrictions.
Overall, automation is playing a major role in the logistics industry and will continue to do so in the future. By using automated technologies and digital tools, companies can minimize last-mile delivery costs and improve efficiency.
Also, choosing a reliable logistics company like NimbusPost can be beneficial for businesses that are readily looking for affordable warehouse and fulfilment services, to optimize their last-mile logistics. Aiming to help MSMEs and even large-scale businesses streamline their end-to-end logistics operations through shipping (domestic and cross-border), warehousing, and fulfilment solutions, NimbusPost works with over 27 different courier partners around the country, including Blue Dart, Delhivery, XpressBees, DTDC, Shadowfax, and others.