Pandemic and Last Mile Logistics

The outbreak of Coronavirus (COVID-19) has severely affected several businesses and the economy as a whole worldwide. Businesses began reevaluating their business models to adapt and remain connected with their consumers. The crisis has been a wake-up call for businesses to step out of their comfort zones, become more agile, and adopt extensive use of technology to mitigate its impact.

However, the pandemic led to a sudden and chaotic surge in demand for online deliveries. With lockdowns in place and social distancing enforced, most people have been spending most of their time at home, using computers or mobile phones.

To prevent the spread, further strict measures included the closure of manufacturing units, retail outlets, and malls, which led to increased demand for home deliveries of various goods, including essential groceries. As a result, companies had to adapt to new ways and the ‘new normal’, and people needed to relearn how to organise their routines.

The ‘New Normal’

If one were to look on the bright side and take away the positives from this unprecedented situation, the pandemic gave rise to new ideas for the modern world. It helped accelerate business models that had long been under discussion, and business agility became essential for survival.

Moreover, the use of technology and collaboration took a significant role in the construction of the ‘new normal’, which is necessary for businesses to sustain and grow. Shifting business online leads to broader adoption of online services, increased demand for digital services in conventional industries, and the need for digital connectivity across sectors.

Furthermore, service providers took this turning point to digitise their processes and develop platforms to offer their products/services online. This rapidly shifting consumer and business behaviour has also pushed last-mile logistics companies to adapt and deliver quickly, flexibly, safely, and efficiently.

The Impact of COVID on Last-Mile Delivery

With the rise in demand for online deliveries, businesses with last-mile delivery systems had a significant advantage over those without. They set about adding capacity, extending work hours, and even branching out into more products.

Businesses that lacked in-house delivery capabilities focused on improving their operations and relied heavily on third-party service providers as their primary channel for reaching customers. The systems worldwide were subjected to pressure unlike any previously experienced.

Here are some key changes and how they’ve impacted the last-mile delivery landscape:

• ‍Accelerated online shopping: Even before the pandemic, e-commerce growth was already accelerating. However, a sudden, radical shift in consumer behaviour during lockdown led to e-commerce growth that exceeded expectations. Even those who were reluctant to shop online shifted to online shopping, and experts believe this behaviour will persist even after the pandemic.‍
• Safety precautions taken: To ensure employee and customer safety, organisations, including last-mile logistics companies, have implemented enhanced sanitation and social distancing policies. Measures such as disinfecting parcels, staggered schedules for employees and contractors in warehouses, and removing the signature requirement were implementA focusocus on safety is essentder to strengthen the businessthe long termterm.‍
• Technology and automation: Decreasing human interaction through strict SOPs and reduced traffic during lockdowns improved delivery efficiency and speed. However, this state was unsustainable; therefore, to improve their services and efficiency, companies had to adopt technologies such as driver and tracking apps and automation. There is considerable room for innovative technologies in the logistics industry amid the accelerated growth in online shopping.‍
• Types of deliveries: During the pandemic, we observed changes and additions in the types and quantities of goods delivered. In addition to regular retail items, there has been a significant increase in deliveries of groceries and medical supplies, including masks, gloves, and medicines. Additionally, with the closure of eateries, the delivery of meal kits and food increased significantly. And it’s expected to continue beyond the pandemic, too.‍
• The sustainability factor: The 2020 pandemic has increased the likelihood of reduced future traffic and improved carbon emissions. In New York alone, pollution levels dropped by nearly half during the pandemic. Hence, to sustain a clean environment, cities could adopt digital solutions such as geofencing and congestion charging. It could also include EVs, deliveries at marginal times, designated parking areas for delivery vehicles, and robust enforcement mechanisms for second-lane parking and overall traffic.

Last But Not Least

The last-mile delivery is complex, costly, and crucial. All stakeholders in the ecosystem are under pressure to act and benefit from the changes ahead, as a massive disruption in supply chains has led to increased time spent in e-stores relative to brick-and-mortar stores. Technologically advanced solutions and conduct will remain crucial to the success of retailers and last-mile logistics companies.