Inside Logistics

Last-mile the least efficient, survey says

Last mile least efficient yet critical to success

August 10, 2020

Last-mile delivery is the most inefficient process of the entire supply chain, according to 59 percent of transportation and logistics companies in the U.S. and 78 percent in Canada.

Yet with a greater variety and quantity of purchases being shipped directly to consumers’ homes, combined with expectations that necessitate rapid, often same-day deliveries, last-mile delivery strategies have never been more important.

These same companies overwhelmingly believe that mobile technology is key to creating good last-mile service. According to a recent report, The Last Mile Sprint: State of Mobility in Transportation and Logistics, commissioned by IoT solutions provider SOTI in partnership with Arlington Research, 82 percent of respondents in the U.S. and 88 percent in Canada agreed that it is critical for delivery providers to ensure a mobile-first strategy around last-mile delivery.

“The stakes have never been higher for transportation and logistics companies in North America as consumers increasingly embrace a delivery culture,” says Shash Anand, vice-president of product strategy at SOTI.

Business leaders understand that a mobile-first strategy for last-mile delivery can transform their business operations. Almost half (49 percent) of respondents in North America with a mobile-first strategy in place for last-mile delivery said that it has effectively reduced their operational costs.

The survey data came from 450 interviews of IT managers, IT directors, senior management and C-suite in transportation and logistics in Canada, the U.S., U.K., Germany, Sweden and Australia. All respondents work in companies with 50 or more global employees.