Amazons sustainability scientists have spent more than three years developing the models, tools and metrics to measure our carbon footprint, Bezos wrote in a shareholder letter in early 2020. But there is more brands can do, and a new report from Accenture (NYSE: ACN) and Frontier Economics highlights how the use of micro-fulfillment centers (MFCs), more efficient vehicles and data can impact last-mile delivery emissions. It will take all ecosystem players working together in ways they never have before. Accenture | Last Mile Delivery video transcript Author: Accenture Keywords: last mile, delivery, post and parcel Created Date: 4/15/2021 12:23:48 PM . Creative Commons Attribution-ShareAlike License (CC BY-SA 4.0), Consumers shopping habits are different. all players in the ecosystemfrom consumers to retailers to logistics providers and manufacturers. googletag.enableServices(); Explore how you can optimize your last-mile delivery. Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients. Sarah Banks, Global Freight and Logistics lead at Accenture, has spent 25 years in the logistics industry. The analysis is revealing. Companies are looking for ways to create sustainable last mile delivery options that are more efficient, less expensive and more eco-friendly. Without high-performing technology, theres no way to manage delivery progress and status, track ETAs, or access electronic documentation. The last mile delivery process is usually conducted in a few stages. Moves up/down stairs, optimized for last mile delivery of small parcels or to follow a person. City and national governments and planners must weigh the trade-offs they can make to incentivize delivery companies to invest in greener fleets, enable the circular economy and develop greener route management practices, the report said, adding that cities should invest in charging infrastructure to make it easier for delivery firms to adopt electric vehicles. Jun 2020 - Sep 20211 year 4 months. Collaboration with existing delivery providers who already provide established last mile offerings, Demand forecast sharing with those providers, Interdependent solutions that drive last-mile performance, Three actions for a truly sustainable last mile, Return & additional value-adding services. That said, business leaders must remain mindful of shifting expectations and select technology agile enough to sustain and exceed expectations, ensuring the experience is not just exceptional, but relevant for the consumer today. Retailers view on delivery services is transforming from a cost-driving perception to a value-differentiating factor. googletag.pubads().enableSingleRequest(); The Accenture Logistics Platform provides multiple views and insights, tailored to different roles in the delivery process. Weve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. Repurpose, retrofit and share assets like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these innovative approaches. Businesses are now faced with the challenge of reshaping their last-mile strategy to put the customer at the center of the entire order and fulfilment process, thereby transforming delivery services from a cost-driver to a customer value-differentiator. Its time to take action and make the last-mile supply chain more efficient, less expensive and more sustainable. He works with global retail clients across sectors to define and support end-to-end strategic business transformations. The 'last mile' offering is transforming delivery models. Thats because the closer inventory gets to the consumer, the more opportunity for alternative last-mile delivery modes such as electric vehicle, bicycle, or even pedestrian. The system monitors the live status of all drivers and combines this with new or updated orders, plus traffic and weather news, to re-optimise routes. In a talk at the Gartner Supply Chain Symposium/XPO in 2022, Gartner VP and analyst Tom Enrightsaid, 53% of shipping costs and 41% of total supply chain costs are tied to the last mile. These numbers account for the better part of any logistics budget. The pandemic radically accelerated local or market-based fulfillment, permanently altering supply chains where inventory is placed closer to customers than ever before. The impact of COVID-19 on the last-mile delivery has accelerated existing trends across the sector, leading to six structural changes expected to shape the future of last mile deliveries. The last-mile supply chain made possible by local fulfillment centers could lower last-mile emissions between 17 and 26% through 2025. To understand this potential, in 2020 Accenture developed a robust econometric model of the impact of local fulfillment centers for e-commerce using data from London, Chicago, and Sydney. Now its time to get intentional and make the last mile more efficient, less expensive and more eco-friendly. Greener. Addressing the business and economic impact. googletag.cmd.push(function() { Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. Advanced analytics improve route density and make intraday optimisations. What will yours be? Theres no turning back from the changes that the pandemic made to the last mile. googletag.cmd.push(function() { Were seeing a push from partnering businesses for more companies to bring operations online. Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients. Large national or pan-European parcel providers need different onboarding procedures, contract durations, system interfaces, and service level agreements than quick commerce platforms that are connected to individual, small-scale last-mile drivers. Real change toward a more sustainable last mile takes coordination and collaboration across the ecosystem. Slower than Boston Dynamics' "Spot" cyberdog, but more functional and ~50 times less expensive. https://www.facebook.com/MaterialHandlingLogistics, https://www.youtube.com/channel/UCTO3PUFzLZbmdcva2Lq_bAQ, Getting Ahead of Supply Chain Constraints from First Mile through Last Mile, Technology and Nearshoring Are Transforming Transportation, Finding that M&A Sweet Spot for Your Supply Chain, Improve Company Culture by Protecting Your People with Workforce Wearables, Supply Chain Insider, Episode 5: Supply Chain Resiliency with Accenture's Maria Rey-Marston, Maximizing Maintenance Management in the Warehouse, Myth vs. Combined with the growth of mobile shopping and the emergence of social commerce, the retail industry is undergoing a radical transformation from traditional commerce to a more fluid, seamless, and personalized journey. Businesses are now faced with the challenge of reshaping last-mile strategies to put customers at the center of the entire order and fulfilment process. A journalism graduate of the University of Rhode Island, he has covered everything from a presidential election, to professional sports and Little League baseball, and for more than 10 years has covered trucking and logistics. For effective third-party performance management, its therefore instrumental to have enabling technology in place and the right set of KPIs and SLAs with the logistics partners. The last mile can be different toomuch, much greenerif the ecosystem comes together to act on sustainable last-mile practices. Stores became fulfillment centers. With demand projections remaining high for last-mile delivery, drones and robots will likely play only a small part, but can work well alongside the more-traditional delivery modes. The Accenture COVID-19 Consumer Pulse Research also indicates that these new habits are here to stay even after the pandemic and change the way consumers shop, live, and work forever. Go the other way, and things worsen unchecked. Discover in depth the three key areas that ecosystem players must focus on to achieve a sustainable last mile. This last mile delivery report suggests that the savings accrued from utilizing cost-effective autonomous technologies in developed economies could add up to 25 billion euros annually. The battleground for eCommerce is the last mileand delivery organisations long-term success depends on getting it right. Differentiated collaboration and integration models are necessary for distinct types of carriers. The whole last-mile ecosystempost and parcel organizations, retailers, delivery companies, governments and consumersis at a tipping point. DHL Supply Chain Volvo EV trucks bring net zero goal closer, World's largest container ship is delivered to MSC, Risk & resilience is changing logistics, says SAP, Geopolitical risk 'demands CEO supply chain proactivity', Warehouse & drivers shortages 'logistics threat' - Sedgwick, Recession requires supply chain risk rethink - Riskonnect, McKinsey and Exiger discuss trends in the supply chain industry, and explore the role a rapidly developing technology revolution is playing in the field, Global supply chain challenges could be eased by colossal power of quantum computing, which create value chain optimisation solutions, DHL Global Connectedness Index 2022 shows US-China ties loosening and that supply chain globalisation alive and well, Route optimisation technology to reduce CO2. For carriers, it eliminates the guesswork around the many variables that can delay a delivery, including traffic, weather, and frustrations like limited access due to narrow hallways or stairs, allowing them to focus on providing an exceptional customer experience rather than troubleshooting. Moreover, retailers have started to restructure their supply chain to boost omnichannel capabilities, improve logistics processes, overcome barriers to grow and identify further areas of enhancement. Minimizing e-commerces carbon impact: How one company is accomplishing it. Explore how you can optimize your last-mile delivery. Transform supply chains and store networks. }); The carbon footprint of the last mile has long been an environmental and societal challenge, said Andr Pharand, a managing director at Accenture who leads the companys postal and parcel practice. SB: The extent of their usage will be dependent on other enabling mechanisms, such as regulatory approvals, customer preferences and last-mile infrastructure availability, including localised inventory availability and sortation centres. This step could be 100 miles or just a couple of blocks. Go one way, and it can create a truly sustainable last milefaster, cheaper and greener. Using local fulfillment for even half of e-commerce orders between 2020 and 2025 could lead to significant impacts. 02 | The pressure is on: the true costs of last-mile delivery Foreword In the last 18 months, last-mile delivery has been fast-forwarded by five years. Visionary, highly analytical, and solutions-driven with successful leadership background in driving IT. Our warehouse and transport management software gives last-mile operators the tools they need to optimise their operations, be more efficient, and, ultimately, create a more sustainable business. The king of the genre, Amazons (NASDAQ: AMZN) Jeff Bezos, claims that e-commerce is more environmentally friendly than in-store shopping. This improvement is broadly consistent across all three cities. Online sales growth has been tremendous and shows no sign of slowing down. For last-mile providers, providing tracking data to customers is now paramount. A further 50% would do so if available. The whole last-mile ecosystempost and parcel organizations, retailers, delivery companies, governments and consumersis at a tipping point. By combining demand forecasting and dynamic route optimisation, our end-to-end solution creates a fast, cost effective and flexible delivery model to reinvent last mile delivery. For many, this means optimising operations. Supply chains are different. Among those customers who prefer a greener delivery, at least 50% are willing to pay a premium price for a more environmentally friendly delivery option. Retail footprints are different. Complex supply chains and greater costs. "Last-mile delivery accounts for 53% of the total cost of shipping and 41% of total supply chain costs. Expansion of delivery modes (cargo bikes, lockers, localised inventory). When fuel goes up by as much as 50%, companies cant pass all that extra cost on to customers, so theyre more willing to make hard decisions to create efficiencies in their operations. The whole last-mile ecosystempost and parcel organisations, retailers, delivery companies, governments and consumersis at a tipping point. The ecosystem accelerated sustainable last-mile practices during the pandemic out of necessity. It helps companies of all shapes and sizes meet the last-mile challenge by improving customer satisfaction and fleet utilization in one package. SB: The biggest impact on last-mile has been the volume. Transform supply chains and store networks. googletag.enableServices(); Its time to take action and make the last-mile supply chain more efficient, less expensive, and more sustainable. Retailers are looking for innovative solutions that meet customers needs for faster, cheaper delivery. }); googletag.cmd.push(function() { It will take an ecosystem of partners working together to create a major evolution in sustainable delivery practices through the pairing of human ingenuity with technology. Last-mile delivery is among the most complex aspects of logistics and is more expensive than any other stage of transportation. Optimizing last-mile deliveries starts with designing a fit-for-purpose fulfillment network. Industry Research 2019 Deliforces Last Mile delivery management software offers companies complete solutions for tracking, diagnosing and eliminating problems related to its fleet management. Click for more Modern Shipper articles by Brian Straight. For effective cost control and management, the e-commerce margin should be based on all relevant e-commerce cost to serve, the eCTS: Improving the eCTS can be realized throughout various levers, and can result in a 10-25 percent gain. The RSR research noted that 62% of retailers agree that solid customer order management and fulfillment capabilities are very important to a consumer-centric operation. SB: Companies are looking to expand the use of different delivery models. www.HelpWriting.net This service will write as best as they can. Contact our team today to learn more about how the Accenture Logistics Platform can help you win the last mile and transform your delivery process. Review of the offered service levels to re-balance lead-time, delivery mode, and free-shipping threshold in line with margin requirements. In its modeling, Accenture determined that if all customers within sixth-tenths of a mile of a fulfillment center walked to pick up their packages, it would mean 14% of Londons deliveries would be zero emission on the last mile. This opens up exciting possibilities for post and parcel and logistics organizations to create a more sustainable last mile. Addressing the business and economic impact. Before that, Ged had spent . Consumers shopping habits are different. Customer behavior and expectations towards retailers, as well as the entire buying experience have significantly changed over the last few monthsfar more than in previous years. Green last mile delivery is possible in 2022 These include incentivizing greener choices, rethinking asset use and harnessing data and analytics. Consumers under the age of 30 express that same-day delivery is valuable for their customer journey. , highly analytical, and it can create a more sustainable last mile takes and. 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