How often do you really think about final mile technology? The chances are good that the final mile is often an afterthought, but the likes of Amazon, Walmart, and Target are changing the narrative. As explained by Supply Chain 24/7, technological development has changed the way supply chains operate, and ongoing development will bridge the divide between limited final mile technology solutions and real-time, actionable use. Therefore, shippers need to understand the problems within legacy technology, which technology can make a difference in final mile logistics and the steps necessary to take today to prepare for the future applications of technology within the most critical aspect of shipping.
Legacy, final mile systems were designed with a traditional process in mind. Transactions flowed from business to business, and eventually, a customer purchased an item in the store. The rise of e-commerce changed everything, and according to Logistics Management, the problem originates within Amazon, Target, and Walmart. The big three retailers of e-commerce have invested countless resources into the development of improved logistics management, and they have turned their invasive gaze toward final mile logistics. It is no longer enough to tell customers that a product will be here today. Customers want to know more information. What time it will be delivered, and what is going to be necessary to use it immediately? In other words, legacy final mile technology simply does not provide enough information to improve the final mile and connect with consumers.
Every shipper has a different preference for what technology is necessary for the final mile. Regardless of what initiatives your company has taken, effective final mile technology must at least include:
The right technology in final mile logistics is everything. It allows companies to understand their costs and opportunities within this vital stage of logistics, and it serves as an additional opportunity for engaging with customers. Therefore, shippers should take the steps now to put the right technology and processes in place:
Final mile performance can be successfully boosted with the right final mile technology. Final mile technologies continue to evolve, and shippers that rely on outdated, legacy platforms will face the risk of lost customers and inferior competition with Amazon. Follow the steps above, and apply the right technology in your supply chain to get real control over final mile logistics.
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