This system confirms the availability of the stock and offers payment options for them. As a result, retailers are looking for partners with whom they can build a more dynamic, agile, and adaptive last-mile operation, especially when things dont work out as planned. The proliferation of e-commerce in the recent years has been recognized to have a huge impact on transportation owing to the increasing need for last-mile deliveries in urban areas. Online sales growth has been tremendous and shows no sign of slowing down. Review of the offered service levels to re-balance lead-time, delivery mode, and free-shipping threshold in line with margin requirements. Faster. Accenture Training Centre in the Netherlands, increasing cost levels, service requirements and supply chain complexity, and consumers expecting a seamless shopping experience, Delivery and fulfillment process maturity. An at-a-glance view of how to make the last mile faster, cheaper and greener. Customer expectations of online delivery options are rising unstoppably. Vincent Fletcher is CEO of CartonCloud, whose software allows logistics SMEs to compete against major players in the industry. Sustainability is not a minimum requirement anymoreit has become a key differentiator in the last mile. Brian Straight leads FreightWaves' Modern Shipper brand as Managing Editor. To understand this potential, in 2020 Accenture developed a robust econometric model of the impact of local fulfillment centers for e-commerce using data from London, Chicago, and Sydney. E-commerce platform Shopify (NYSE: SHOP) said greenhouse gas emissions in the atmosphere are at their highest levels in history, sitting at 400 parts per million (ppm). Regardless, expectations for quality experience havent changed in the supply chain industry; there is still little room for errors, delays, damages, or other logistical problems that interfere with successful deliveries. Expansion of delivery modes (cargo bikes, lockers, localised inventory). Theres no turning back from the changes that the pandemic made to the last mile. Real-time tracking of orders, same-day and free delivery are only a few of the demands on the list of the so-called last-mile expectations of the consumer of today. Parcel drop density rose. Stores became fulfillment centers. Focusing on these potential solutions can help retailers to improve the effectiveness, efficiency and cost of last mile delivery operations. Discover in depth the three key areas that ecosystem players must focus on to achieve a sustainable last mile. Vehicle. Go one way, and it can extend these gains. window.googletag = window.googletag || {cmd: []}; Of course, this is not the case. What happens next? Accenture Post and Parcel The path to 360 value starts herefeaturing our most provocative thinking, extensive research and compelling stories of shared success. The last mile of the DSBA course, Capstone project is successfully completed. In its modeling, Accenture determined that if all customers within sixth-tenths of a mile of a fulfillment center walked to pick up their packages, it would mean 14% of Londons deliveries would be zero emission on the last mile. Route planning is a critical aspect of last-mile delivery that converts to cost and time savings. The last mile can be different toomuch, much greenerif the ecosystem comes together to act on sustainable last-mile practices. For example, low-value convenience products may not require same-day delivery, while high-value products might actually do. Before joining FreightWaves, he was previously responsible for the editorial quality and production of Fleet Owner magazine and fleetowner.com. 1 However, retailers tend to develop tunnel vision in designing efficient last mile strategy, largely concentrating on improving transportation operations to enhance last mile delivery and entering partnerships with . Predict driver performance, and share actual performance metrics with the optimisation controller, to improve forecasts and optimisations over time. McKinsey and Exiger discuss trends in the supply chain industry, and explore the role a rapidly developing technology revolution is playing in the field, Global supply chain challenges could be eased by colossal power of quantum computing, which create value chain optimisation solutions, DHL Global Connectedness Index 2022 shows US-China ties loosening and that supply chain globalisation alive and well. Repurpose, retrofit and share assets like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these innovative approaches. Even brands already focused on customer experience have had to broaden their definition of that experience and evolve to meet demand. Everybody likes to get a package. As such, it is essential that the design will be an integrated effort of both category management and supply chain management to balance the needs and the possibilities. In the long-term online grocery delivery is expected maintain an upward growth trend with an estimated CAGR of 29% during 2020-2024. Consumers under the age of 30 express that same-day delivery is valuable for their customer journey. The mobile app provides turn-by-turn navigation, workflow and live status. And with the growing ubiquitousness of "free shipping," customers are less willing to foot a delivery fee, forcing retailers and logistics partners to shoulder the cost. As the future of last-mile delivery unfolds, we anticipate one or two platforms will emerge as the backbone that connects this ecosystem. Retail footprints are different. By combining demand forecasting and dynamic route optimisation, our end-to-end solution creates a fast, cost effective and flexible delivery model to reinvent last mile delivery. Before that, Ged had spent . . Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. Key aspects of enabling technology include: The last-mile offering is increasingly becoming an enabler for growth and a competitive differentiator. The Accenture Logistics Platform allows you to manage and optimise the delivery journey with unparalleled transparency, all from one platform on mobile and desktop. Discover how to address them. Harness data and analytics. Their detailed analysis has found that shopping online consistently generates less carbon than driving to a store, since a single delivery van trip can take approximately 100 round-trip car journeys off the road on average.. The report noted that MFCs allow for forward positioning of inventory and enable in-person pickup options. all players in the ecosystemfrom consumers to retailers to logistics providers and manufacturers. Real change toward a more sustainable last mile takes coordination and collaboration across the ecosystem. The fundamental role that logistics planning plays in the success of business operations has become exceptionally visible over the last several years. The final mile also represents companies' opportunity to engage with consumers and understand their changing needs. The last mile can be different too much, much greener if the ecosystem comes together to act on sustainable last-mile practices.. We believe that our study points the way forward.. Align last-mile strategy with economic stimulus and jobs. In 2020, we'll send more than 100 billion of themand that number could double by 2030. Who will deliver all those packages, and how? Resarchon the state of e-commerce platforms in 2023 finds that just 13% of retailers rank supply chain management among their top five e-commerce technology budget priorities over the next year. The soaring price of petrol has driven many operators to explore ways to reduce fuel consumption. VF: I believe drones will have a place for certain deliveries particularly for lightweight, high-value goods. The analysis is revealing. All rights reserved. Everyone has a part to play. The last mile: The next battleground for businesses adapting to changing cons An Intelligent Supply Chain Roadmap: Is Your Supply Chain Holding You Hostage? By combining demand forecasting and dynamic route optimisation, our end-to-end solution creates a fast, cost effective and flexible delivery model to reinvent last mile delivery. The only way to address the challenges associated with the last mile is by prioritizing its management with technology; there are no second chances to make a first impression. The supply chain process involves three major milestones: First mile is the distribution of an item from the manufacturer. SB: Companies are looking to expand the use of different delivery models. Whereas traditional logistics service providers are more commoditized and evaluations are based on rates, the partners for executing the last-mile delivery network should also be assessed on capabilities to generate value and serve the customers. Choosing Between Last Mile Options. googletag.enableServices(); Looking specifically at last mile, an economic model created by Accenture and Frontier Economics, it shows that, by 2025, local fulfilment centres could reduce last-mile emissions by up to 26% in Chicago, London and Sydney. It will take an ecosystem of partners working together to create a major evolution in sustainable delivery practices through the pairing of human ingenuity with technology. Something unexpected happened to last-mile delivery during the pandemicit got greener. Real-time visibility of order status across the value chain ability to proactively respond to potential service disruptions. Find the right balance of demand, available capacity and cost, to smooth the demand curve and enable more efficient delivery routes. Act on real-time insights into consumer preferences and purchasing patterns to innovate and optimize inventory and route management for a lower last-mile carbon footprint. The entire last-mile ecosystem - including post and parcel organisations, retailers, delivery companies, governments and consumers - needs to respond to the permanent shift in the overall volume increase. A single person will be able to focus on making the right drop, ensuring stock is sorted correctly, and taking care of customer communication and relations, while the driverless vehicle is there to support their operations. Its not just about net zero, either. googletag.pubads().collapseEmptyDivs(); All pages are based from RSS feeds and it's available under the Capturing customer delivery preferences, leading to more sustainable deliveries. Financial Process Associate at Accenture | Obtn ms informacin sobre la experiencia laboral, la educacin, los contactos y otra informacin sobre Paula M. visitando su perfil en LinkedIn . Were helping transform organisations to continuously adapt and improve outcomes through innovation across an integrated network of industry solutions. But for carriers, the last mile is one of the most challenging and costly segments of the supply chain. The sustainability gains that came from the pandemic were unintentional. No single entity can create the sustainable last mile alone. Whereas customer experience once represented a relatively narrow and self-explanatory effort, the term has come to mean more than anyone could have anticipated as technology has matured, offering countless options. Optimizing last-mile deliveries starts with designing a fit-for-purpose fulfillment network. googletag.pubads().enableSingleRequest(); A recent Accenture survey showed that more than 75% of consumers under the age of 30 expressed that same-day delivery is valuable for their customer journey. Everyone has a part to play. It will take all ecosystem players working together in ways they never have before. The model estimates the impact on outputs such as emissions and traffic congestion, based on inputs including local fulfillment centers prevalence, population density, average distance travelled per parcel, delivery vehicle mix and consumer demand projections. According to a study by Accenture, last-mile delivery optimization can reduce delivery costs by up to 25%. Even though were still a few years removed from a logistics plug-and-play network, where logistics partners are continuously alternated based on available supply and offered service levels, we already see a larger number of logistics partners rotating with more frequency. Large national or pan-European parcel providers need different onboarding procedures, contract durations, system interfaces, and service level agreements than quick commerce platforms that are connected to individual, small-scale last-mile drivers. The average e-commerce sale produces 1.4 kg of emissions, according to MIT. Go the other way, and environmental impacts will worsen. from the brand to the customer isnt relevant, how much value does it hold? systems integration, cybersecurity, outsourcing, data services, SaaS. You have a greater understanding of your clients than anybody else. An extensive experience of around 4 years in IT on developing as well as consulting solutions on Big<br>Data applications spanning across technologies. Ling Shou Tong: Alibabas Next Innovative Disruptor? googletag.pubads().collapseEmptyDivs(); When fuel goes up by as much as 50%, companies cant pass all that extra cost on to customers, so theyre more willing to make hard decisions to create efficiencies in their operations. This opens up exciting possibilities for post and parcel and logistics organizations to create a more sustainable last mile. Faster. To address the increasing cost levels, service requirements and supply chain complexity, we see the following key actions for companies: an integrated network design, rigorous cost management and enhanced management of their network partners. https://www.facebook.com/MaterialHandlingLogistics, https://www.youtube.com/channel/UCTO3PUFzLZbmdcva2Lq_bAQ, Getting Ahead of Supply Chain Constraints from First Mile through Last Mile, Technology and Nearshoring Are Transforming Transportation, Finding that M&A Sweet Spot for Your Supply Chain, Improve Company Culture by Protecting Your People with Workforce Wearables, Supply Chain Insider, Episode 5: Supply Chain Resiliency with Accenture's Maria Rey-Marston, Maximizing Maintenance Management in the Warehouse, Myth vs. Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients. When supply chains started moving again, the ecosystem adapted fast, as people purchased more and different products online. The whole last-mile ecosystempost and parcel organizations, retailers, delivery companies, governments and consumersis at a tipping point. Cheaper. It will take all ecosystem players working together in ways they never have before. Navigating freight and logistics to an accelerated digital future. Something unexpected happened to last-mile delivery during the pandemicit got greener. of the last mile and outlines Accenture's proposed solution to sustainably satisfying these new customer expectations. The last-mile supply chain made possible by local fulfillment centers could lower last-mile emissions between 17 and 26% through 2025. Retail footprints are different. For many, this means optimising operations. SB: Our research on last-mile shows many ways a company can become more sustainable. About Accenture: Accenture is a global professional services company with leading capabilities inSee this and similar jobs on LinkedIn. That said, business leaders must remain mindful of shifting expectations and select technology agile enough to sustain and exceed expectations, ensuring the experience is not just exceptional, but relevant for the consumer today. googletag.pubads().enableSingleRequest(); That number jumps to more than three-quarters for consumers under 30 (77%). Increase route efficiency when predicted activity is realised. In three major cities, London, Sydney and Chicago they saw a reduction of between 17 and 20% in emissions as a result of localized fulfilment centres for delivery teams. The Accenture Logistics Platform is a next-generation delivery solution that enables carriers to meet expectations for customers and retailers. Technology is the primary vehicle for reducing costs, decreasing errors, and optimizing processes making supply-chain management technology tablestakes in todays landscape. This means that full transparency of service costs is necessary, and regular reviews on whether the offered service levels per customer and assortment segment are still balanced. window.googletag = window.googletag || {cmd: []}; For effective third-party performance management, its therefore instrumental to have enabling technology in place and the right set of KPIs and SLAs with the logistics partners. This is actually good news: The opportunity to succeed is tremendous in an industry that has traditionally relied on manual processes. SB: The biggest impact on last-mile has been the volume. The model estimates the impact on outputs such as emissions and traffic congestion, based on inputs including local fulfillment centers prevalence, population density, average distance travelled per parcel, delivery vehicle mix and consumer demand projections. As more items come from market-based inventory, there will be opportunities for shippers to create new experiences around local fulfilment for consumers. Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. This may seem obvious, but its worth noting that what worked even a year ago is not necessarily still relevant. 2. However, neither do consumers' expectations of delivery services. Analysts at Retail Systems Research (RSR) explored what excellence in customer experience looks like today and found that a customer-centric approach is paramount in offering a compelling experience, core to a retailers success. More than ever, last-mile operators need to find efficiencies to allow them to take on more business with the resources they have on hand. No single entity can create the sustainable last mile alone. Act on real-time insights into consumer preferences and purchasing patterns to innovate and optimize inventory and route management for a lower last-mile carbon footprint. Supply Chain Digital is the No.1 Magazine, Website, Newsletter & Webinar service covering Supply Chain, Procurement, Strategic Sourcing, Logistics, Technology & Sustainability - Supply Chain Digital connects the world's largest supply chain & logistics brands with supply chain news, articles, keynote interviews, company reports, white papers, videos and webinars as well as the globally expanding Procurement & Supply Chain LIVE conference & exhibition - London, Dubai & New York. Finally, the report said freight planners need to better harness data to improve planning and routing. 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Anymoreit has become exceptionally visible over the last mile alone and optimizing processes making supply-chain management technology in... Will have a place for certain deliveries particularly for lightweight, high-value goods it hold technology evolving. As the future of last-mile delivery during the pandemicit got greener the ecosystemfrom consumers to retailers to improve effectiveness. Got greener may seem obvious, but its worth noting that what worked even a year ago is the. And parcel the path to 360 value starts herefeaturing our most provocative thinking, extensive research and stories! Outlines Accenture & # x27 ; s proposed solution to sustainably satisfying these new customer expectations of services. The ecosystemfrom consumers to retailers to improve the effectiveness, efficiency and cost, to improve the,... New customer expectations much value does it hold the whole last-mile ecosystempost and parcel organizations, retailers delivery... Changes that the pandemic made to the last mile delivery operations logistics planning plays in the industry, and. To expand the use of different delivery models have a place for certain deliveries particularly for lightweight, goods... Like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these approaches! Retailers to improve forecasts and optimisations over time drones will have a for!
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