Impact of Covid – 19 on Last-Mile Deliveries

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15 Jun, 2021

Impact of Covid – 19 on Last-Mile Deliveries

It is apparent that the Covid-19 pandemic has affected a lot of industries, supply chain being one of them. With the pandemic hitting the economy of the world, it has also caused a major spike on the customers’ demand of the deliveries of the goods. Due to increased rivalry in the industry to fulfil the customer needs, many organizations have re-evaluated their business models and changed several policies to make it more resilient and gain the customer goodwill. This has led the supply chain companies shift their focus on making their last-mile deliveries more efficient, fast, flexible as well as quick. With the ‘no touch’ rules been implemented all over the world, the public has shifted to ordering online which is comparatively easier, feasible and flexible for them, making the logistic industry pull up their socks for increased preferences of home deliveries.

Ways that Covid-19 has impacted Last-mile Deliveries

The last-mile deliveries take up more than half of the supply chain process and usually refers to the last part of the supply chain journey yet this is an extremely process as it is the most exposed and consumer-facing part. Understanding how the Covid-19 has affected this important process becomes even more critical as it effects the e-commerce, supply chain and almost the whole delivery industry.

Prioritizing Safety during deliveries

With the ‘no contact’ rule, many of the customers are turning to home deliveries. Supply chain companies and delivery agents are coming up with new services and ways to make this process safer for the customers and leave them satisfied. The agents are not only making sure that they are keeping their thermal temperature on check and sanitizing themselves but are also avoiding contact and opting for ‘contactless’ deliveries. Since it is crucial to make any contacts at this point, the last-mile delivery companies have, now, started to keep their process digitized and automated, like introducing Electronic Proof of Delivery software (e-POD) and digital payment mode.

Boom of e-commerce and online orders

Since the mass of people are forced to stay indoors due to the lockdowns, many have shifted their focus on online shopping within the four walls at their homes. As much as it is feasible for the customers to order any and everything with just one tap, it has become difficult for retailers to meet the customers’ increased demands. Therefore, many of them, now, have partnered up with several last-mile delivery companies to keep their business afloat. Based on the customer’s needs, these retailers have extended their services as either a Cloud retail outlets or BOPIS (Buy Online and Pick up in Store). According to the New Raydiant report, 75% have already used BOPIS service.

Optimizing routes

The accelerated demands and the pressure to fulfil each one of them has put an elevated sense of responsibility upon the last-mile delivery companies. With an increased volume of parcels to be delivered, these companies cannot afford having any last-minute changes to their routes due to any unexpected calamities and/or delays. Therefore, they are on a roll to optimize the delivery routes to make their last-mile delivery more efficient. To integrate their new orders into system and schedule the deliveries effectively, these companies are, now, taking help of the dynamic route optimization software. With the help of this software, the driver gets the real-time and regular updates of the best possible routes and also enables on-time deliveries of the high-volume parcels, thus saving fuel costs.

Increased significance of drivers’ performances

With the increased volume of home deliveries, making sure that each and every parcel reaches its destination on-time and safely has become important more than ever. In such cases, the drivers play a vital role in making the process possible. Apart from making sure that the health of the drivers is intact, the supply chain companies also must focus on their performances.

Due to increased load of work, it is natural that the drivers take unscheduled breaks and the ones which are longer than they are supposed to take, leading to inefficiency. In this case, it has become even more essential to keep a track of their movements and install a real-time fleet tracking software for a transparent view of the driver’s functions.

The world of business has witnessed many companies failing and many revolutionizing the way they work due to Covid-19 pandemic. There is no lie that the epidemic has compelled many industries to come up with newer and upgraded business models only to fight the pandemic and make their companies resilient. Today, the LSI World is focusing more on on-time deliveries to people than treading miles. Customers want a greater control over their order information and this has made LSI World remodel in a much better way for greater efficiency and optimization. This has all been made by the pandemic. Covid-19 has served as a catalyst to make certain things happen much earlier than their time, the revolution in last-mile deliveries being one of them.

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