The last mile - the costliest and most complicated leg of the supply chain - will continue to be a focus for logistics professionals as we move into 2024 .
Sustainability Costs and Responsibility
The focus on sustainability will only grow stronger in 2024 , and will continue to shape last-mile delivery operations . Consumers , shippers and regulators are increasingly emphasizing environmentally-friendly shipping practices , putting pressure on carriers to offer them . However , transitioning to sustainable logistics comes at a cost , leading to a critical question : who will bear the financial burden for more sustainable shipping ? Striking the right balance between sustainability and cost-effectiveness is a difficult task . Last-mile carriers will need to navigate these competing demands skillfully and explore innovative , cost-effective and sustainable logistics solutions .
The Consumer and the Shipper
In the intricate web of last-mile delivery , the relationship between consumers , shippers and carriers is dynamic and interdependent . Consumers look to shippers for efficient , reliable delivery services , while shippers rely on carriers to fulfill these expectations . Carriers , in turn , aim to meet both consumer and shipper demands , ensuring that packages reach their destinations according to shipper delivery windows at the lowest cost possible .
However , as consumer preferences evolve , there is a discernible shift toward enhanced delivery experiences . Consumers ’ once paramount emphasis on rapid delivery is giving way to a more balanced perspective that now also prioritizes cost-effectiveness and eco-friendly practices . Shippers therefore need to adapt to these changing demands by seeking ways to optimize the last-mile delivery process and meet consumer expectations without compromising sustainability and affordability . Oftentimes , they rely on their carrier partners to help make this happen .
To strike this balance between cost-efficiency , sustainability and exceptional delivery experiences , shippers are beginning to diversify their carrier partners . They are engaging in rate shopping between carriers to secure cost-effective options while diversifying their delivery networks among numerous carriers , including smaller regional ones , to increase flexibility and operational efficiency . This will require shippers to invest in technologies such as multi-carrier parcel management solutions to automate carrier allocations and boost network efficiency . In a recent study conducted by FarEye , 59 % of retailers expect their delivery networks to become more diversified in the next 5 years .
Carriers take note . fall 2023 I customized logistics & delivery Magazine 15