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While the spike in demand for one-click delivery has been influenced by Covid-19 lockdowns, the bright future for courier services doesn’t seem to be waning. Forecasts for the next year predict a compound annual growth rate of 7% for the global courier, express and parcel market despite some of us returning to in-person shopping.
As such, ‘last-mile delivery’ has become the new buzzword across both the courier and logistics industries, where consumers are not only eager for the quickest possible delivery, but also for as much clarity and information they can get along their package’s journey. From route plans to packaging, courier services are steadily optimising through advanced logistics software. Here are some of the key industry trends to look out for as we steam ahead into 2022.
1. Smart tracking
The rise of smart logistics means that the gap between the customer, the product and the delivery driver is ever-narrowing. Digitisation has increased companies’ reliance on technology to keep on top of packaging cycles. The right tracking systems thereby provide clarity and transparency for every step of the delivery process, in order to make sure that each package reaches its destination efficiently and none fall through the cracks.
In this way, emerging GPS software that enhances courier logistics gives customers insight into where their order is at all times. They can see when their parcel has left the depot and receive an estimated time of delivery, for example. According to European Business Review, the perks of smart tracking range from improved routed planning to automated operations: “From the dispatch process to the delivery, the entire process is processed through algorithms to maintain speed”.
This approach is already blooming among several providers. CitySprint, for example, incorporates real-time tracking into its service, and guarantees users “a time-stamped audit trail and proof of delivery”. Key Software Systems also claim that the right GPS tracking can improve productivity by up to 20%, while fuel costs can be reduced by 15%.
2. Sustainably-minded delivery
At face value, reducing carbon emissions when performing delivery services is hard, but there has been a real effort to make green delivery a fundamental aspect of courier services. The capabilities of a delivery company to provide an eco-friendly and socially conscious operation is more valuable than ever before.
One of the popular solutions that will likely continue to rise in 2022 involves fossil fuel-free transportation, such as pushbikes for small deliveries and electric-powered vehicles for larger cargo. Meanwhile, firms are minimising waste at every step of the logistics process, for instance, by switching their packaging materials.
3. Delivery bots and drones
Robotics and automated devices like drones and self-driving cars are being welcomed by companies that run on logistics, such as Amazon. However, implementing these robot solutions has been something of a rocky road.
Despite Amazon’s failure to launch, businesses have continued to trial the use of drones for package delivery, which is unsurprising given that it’s touted to be 90% cheaper than car based services. Since this tech is still in the adoption phase, wranglings over regulation are rife, but the UK gave the green light for this “transformational” logistics solution back in April.
As with drones, automated vehicles and delivery bots may even take over the roles of countless van and truck drivers in the coming decade. For example, last November, the Co-operative Group began experimenting how autonomous robots can roll out food on UK streets.
4. Use of big data
From banking and insurance to governance, manufacturing, and education, logistics companies have access to large quantities of data which can be utilised for predictive analytics. These encompass various statistical techniques that aren’t limited to mining data, but can also envelop machine learning. What this branch of artificial intelligence involves is computer algorithms that improve automatically through accumulating more and more data. Machine learning is then combined with predictive analytics to create predictive modelling.
The impact of this on the delivery process may be staggering, as it can be used to optimise each step of the delivery. According to Smith & Howard, some logistics companies are using advanced predictive analytics to understand the likelihood of a shipment shifting in status using simulation models, so they can assess the specifics of various deliveries.
While courier and logistical services have rarely been unified in their processing of large volumes of data, the deployment of analytics may be the boost that determines the nature of this business for years to come.
