More than half of logistics providers looking to focus on automation as delivery volumes grow
Outdated business processes and manual operations a challenge for 41% of logistics providers when it comes to scaling last mile operations
Over 60% of logistics service providers saw increased demand for last mile delivery, but a lack of visibility, automation and innovative tech is holding them back in this development according to the ‘State of Last Mile Logistics’ report.
In the research from delivery and fulfilment cloud platform provider Bringg, 41% of the 200 logistics leaders surveyed said their biggest challenge to scaling last mile operations is outdated business processes and manual operations, followed by legacy technology (36%).
The report showcased a lack of technology and supply chain agility, with some plans to increase this from many providers, and some action already having been taken.
Fifty-four percent of logistics providers are focused on adding automation to improve customer service, and 41% have already done so. However, 53% of respondents say their shippers use or have requested real-time visibility tools for end customers, but only 18% of providers have it - and over half have no plans to purchase.
The top wish-list item from shippers is automated scheduling and self-scheduling, at 61%, however, 20% of respondents already noted that they've abandoned implementation because it was too expensive.
Sixty-four percent are also planning to offer new premium services and service plans to increase business through last-mile operations this year, while 43% say intelligent and easy integrations that enable multiple delivery models is the technology that will most help them win business.
Report analysts said that there is likely to be a rise in use of third-party ecosystem partners as logistics services providers cannot meet customer demand themselves.
"This past year has forced retailers and service providers to assess their supply chain agility and resilience," said Guy Bloch, CEO at Bringg. "While they want to take advantage of growing opportunities in the world of ecommerce, they are challenged by legacy systems, limited visibility and high operational costs.”