Bringg finds in its new Annual State of Last Mile Logistics Report of 2022 that increased visibility, automation, and better end customer experiences are critical to support logistical and transportation providers’ drive to increase revenue.
Bringg, the leading delivery and fulfillment cloud platform provider, today released findings from a recent survey of logistics and transportation providers in its annual report, State of Last Mile Logistics. Bringg commissioned a survey of 200 logistics and transportation leaders, from across North America and Europe, on their last mile operations. The results present insights into where logistics providers are focusing their growth strategy, and how to bridge the gap between growing delivery trends and current capabilities supported by technology in order to fuel and sustain long-term growth.
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One clear challenge found in the survey was the need for enhanced connectivity across the last mile network. When asked what would give providers a competitive advantage, more than half of respondents (54%) pointed towards business analytics across all carriers. Improving integrations and delivery performance with external carriers relies on having a strong, connected last mile ecosystem that can deliver accurate, real-time data across all resources and systems.
Offering automated tools for visibility that can lead to exceptional customer experiences topped the list for most logistics and delivery providers, as well as the most offered capability. In order to offer real-time visibility and automation, 86% of providers are either already using order batching technology, or plan to by the year 2024.
As returns and same-day delivery become fundamental offerings for shippers, logistics providers who can extend these services will have a competitive advantage in the market. These models can be achieved quickly by tapping into on-demand, contracted carriers to facilitate same-day delivery for shippers, while using existing drivers and technology that supports omnichannel last mile delivery flows to manage deliveries and returns on the same routes.
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Key findings in the report include:
- Shipper onboarding and integration top the list of last mile operational pain points for all respondents (44%), followed by visibility into outsourced delivery partners (44%), and carrier and driver management (41%).
- Enabling greater delivery experiences for end customers, and operating more profitably at scale, logistics providers continue to prioritize visibility and automation across stakeholders as methods of reducing delivery costs. 87% are implementing or planning to implement real-time visibility by 2024 to help grow delivery volumes, with that number climbing to 90% for automated dispatch and routing.
- 38% of respondents struggle with driver retention, and 40% are significantly raising driver wages to meet this challenge.
- 27% of logistics providers this year said that offering returns and pickup services is one of their top strategies for increasing business through last mile operations – compared to only 5% of respondents in Bringg’s 2021 logistics report.
- 41% of providers point towards managing multiple carriers as a top pain point, and 18% claim it to be the top blocker to more profitable last mile delivery – a number that grows to 25% for North American companies.
“Today’s consumers demand fast and on-demand delivery options that logistics and delivery providers must strive to meet,” said Guy Bloch, CEO at Bringg. “Logistic providers have increased their delivery capacity to keep up with rising eCommerce volumes and evolving consumer expectations. But many of their current solutions are not scalable and have come at the expense of visibility, efficiency and as a result, profitability. More businesses will implement last-mile delivery software to automate order dispatch, route planning, task allocation, performance monitoring, digitized end customer experiences, and other logistics tasks. In order to thrive in the last-mile ecosystem in 2022, providers must be able to execute a well-planned strategy and focus their existing resources wisely..”
