Reuters Events | Supply Chain & Logistics Business Intelligence

“It is about what a business can do to make the journey smooth and intuitive, so that it adds to the brand experience and loyalty,” says Mehul Kapadia, the chief revenue officer at Locus.sh

This interview was conducted at Reuters Events: Supply Chain USA (May 17-18, Chicago, 2023).

While e-commerce has succeeded in condensing the ‘buying experience’ from physical retail outlets to digital screens, the need to impress customers remains as crucial as ever. Despite the absence of tangible elements inherent in physical retail, such as face-to-face interactions, ambiance, and personalised sales approaches, particular attention is now directed towards the last mile — the sole phase directly engaging with the end-consumer during product drop-off.

“Customer experience takes precedence,” says Mehul Kapadia, the chief revenue officer at Locus.sh, a real-time dispatch management platform for the last mile. “It is about what a business can do to make the journey smooth and intuitive, so that it adds to the brand experience and loyalty.” 

Kapadia also contends that thinking of how the logistics workforce that runs operations on the ground is essential. “As an industry with a lot of gig contract workers in the last mile, workforce empowerment becomes important,” he says. Companies need to spare a thought for their staff before investing in technology, ensuring they are user-friendly, do not involve complicated procedures, and minimise the need for oversight. 

A clear focus on innovation and choosing the right technology partners will help businesses gain granular insight into operations, which can be leveraged effectively across different organizational levels. “Companies need to work on not only unlocking cost efficiency, but also operational excellence that will help drive growth,” says Kapadia. While emphasizing last-mile efficiency benefits the company’s bottom line, it also helps improve operational sustainability — a crucial ask in the evolving supply chain management landscape.

A technology approach to cost optimization

Regardless, tending to the last mile is not cheap. In a retail and logistics world where margins are scanty, companies are often forced to consider the cost pressure of improving the last mile. “We need to be able to look at it as a growth driver, rather than just a cost centre,” argues Kapadia. “If you’re saving on your fleet capacity, it should help you unlock more orders that can be delivered and provide intelligence and fuel for your marketing team to create more of it.”

Large market incumbents can think of more innovative methods to address last-mile costs. Amazon’s recent move to offer customers $10 to pick up purchases in-store is intriguing, as it enhances the customer experience by providing them an extra choice and, thereby, added convenience. This option allows for faster, more predictable pickup at the customer's convenience, while offering incentives for in-store pickup can help Amazon clear orders quicker during peak demand. 

No last-mile delivery journey is complete without bracing for returns. Kapadia stresses the need for companies to rethink handling returns and its associated reverse logistics as one integrated cycle, rather than a linear process. 

“Over the past three years, there has been a substantial increase in returns, and we’re at 16.5% of returns on orders today,” says Kapadia. Companies must seriously consider how they manage inventory, as the ever-growing volume of returns will significantly impact stock availability, demanding a strategic approach to ensure optimal operational efficiency.

Interested in finding out more about Supply Chain USA 2024 (22-23 May, Atlanta)? Then click here.