Last Mile Delivery: This is How AI Can Help To Overcome Its Challenges

2 min read
Jul 28, 2022 8:51:54 AM

It is no secret that Artificial Intelligence (AI) is an increasingly common source of innovation in various businesses. Logistics and package delivery are no exception.

As a result of the pandemic, the increased demand for products and the growth in the volume of shipments represent an increasingly great challenge, especially for companies that want to take advantage of the e-commerce boom.

The "last mile" (i.e., the route traveled from the last distribution base to the end-user) is where operating costs increase the most when something unexpected happens.

Now, we will tell you how 4.0 technologies, such as AI, offer a unique opportunity to improve the user experience while optimizing costs.

How does last-mile logistics improve with AI?

Let's take the scenario where a package cannot be delivered because the delivery person found no one to receive it. Then, the box would have to be reprocessed, and, consequently, the operating costs would increase, not to mention that the user would be dissatisfied.

In these cases, it is worth asking: What would have happened if, thanks to AI, we had offered the user the option to choose the exact date and time to receive the package in person?

Accurately predicting shipping times or determining the best vehicle or route to make a delivery are advantages of using AI tools in last-mile logistics.

Managing inventories, optimizing order display, or improving operation logistics are also on the table when talking about processes that can be enhanced by data analysis.

Another important aspect of using 4.0 technologies is allowing new personnel to be incorporated more quickly and efficiently.

The information analyzed by AI systems means that new collaborators face less steep learning curves. It is no longer necessary, for example, to learn each route in-depth or to have much experience to make the most efficient decisions in each case.

With the support of AI, people with little experience can reach high levels of productivity in much less time.


Last-mile and data science

It is possible to collect data at every step of a supply chain. This information is an invaluable resource for organizations looking to offer services that accurately meet users' needs.

However, part of this information often remains unused and does not impact the user experience because there are no tools to analyze it. 

AI allows us to understand the information available better and represents the possibility of analyzing the context in real-time and making decisions that directly impact end-user satisfaction.

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