Last Mile: What Will Be Trending in 2022

15 May 2022

The Covid-19 pandemic has accelerated a process that was already intensifying: the growth of e-commerce and omnichannel. Many companies that needed to migrate to e-commerce no longer intend to return to their status quo.

Similarly, most consumers who have tried online shopping intend to maintain the habit. This means that the last mile, or last mile delivery, will become increasingly relevant, a dividing line between successful companies and others.

Today’s customer wants to receive the purchased product as quickly as possible. Additionally, they want visibility of their order, being able to instantly monitor its status from the warehouse exit to their doorstep. In this sense, to gain a competitive advantage, companies must understand the main last mile trends and adapt to the ever-evolving scenario. All with a single focus: improving the customer experience.

Last Mile: Definition

Last mile delivery is defined as the movement of goods from a distribution center to the final recipient. The term “last mile” refers precisely to the final stage of order fulfillment, and is therefore extremely relevant to ensuring consumer satisfaction.

With the advent of omnichannel, the last mile has become even more important, but complex, as it is necessary to offer the same standard of service across all channels, which requires high logistical efficiency. What we see today is that the changes introduced by multichannel sales have forced companies to evaluate the current resources of their distribution network and make the necessary adjustments.

In a highly competitive scenario, where consumers have a multitude of purchasing options on the Internet, optimizing the last mile becomes crucial for those who want market share and customer loyalty.

Last Mile Trends for 2022

It is already known to everyone that 2020 brought great transformations in retail, requiring many companies to reinvent themselves and abandon old standards. Many of these changes are destined to last and make the digitization of the supply chain an imminent necessity. Without the help of technology, it is practically impossible to meet the demands of the new consumer. Additionally, it is important to remember that there are great leaders, like Amazon, who never tire of innovating to offer unparalleled service to their customers, putting pressure on competitors to follow the same path.

Those who want to stand out must prioritize the last mile, adopting best practices and relying on technologies that bring greater precision and agility in deliveries. Discover below the main trends in last mile delivery:

Same-Day Delivery

Same-day delivery is gaining more and more relevance when making a purchase decision. It is not surprising that Mercado Livre is doubling its logistics capacity in Brazil to be able to make deliveries within 24 hours. And the most interesting thing is that the customer shows a willingness to pay extra for same-day delivery. According to a survey conducted by PWC, 40% of consumers are not willing to pay an additional amount for same-day delivery.

As highlighted by the Supply Chain Brain portal, same-day delivery is expected to reach a market share of 25% by 2025, and with the acceptability of additional costs, this delivery method will end up becoming profitable.

The truth is that companies must hurry to adapt to this new format, otherwise they risk being “swallowed” by the big players who can already offer it.

Micro-Fulfillment Centers

Micro-fulfillment centers, small warehouses located in urban areas, have been the great solution found by giants like Amazon and Walmart to make faster deliveries. Today this model has already been adopted by several companies, of various sizes, for the great advantages it offers.

Besides being closer to the final consumer, the micro-fulfillment center reduces last mile costs and requires much less investment to be implemented.

With the pandemic, many retailers ended up transforming their physical stores into these mini urban hubs, to serve their customers faster and retain them. In the United States, Amazon has already negotiated with mall owners to transform them into micro-fulfillment centers.

Autonomous Delivery

Autonomous deliveries are becoming more and more common, thanks to the use of driverless vehicles and drones. This technology is greatly improving the efficiency and speed of last mile deliveries. For example, Amazon has introduced an autonomous delivery vehicle called “Amazon Scout,” which is already in use in some communities.