In an effort to capture market share, brands are competing with each other on the speed and quality of last-mile delivery - that is, the transfer of a package from the distribution center to the end consumer. This stage is not only crucial for customer satisfaction, but also represents a significant portion of the delivery costs and challenges for logistics service providers. Typically, the share of costs for the last leg of delivery is more than half of the total transportation costs (53%). Inefficiencies in the last mile can lead to even higher costs, customer dissatisfaction, and loss of competitiveness. So, the stakes are very high. 

AI in last-mile delivery

Last-mile delivery has become a center of innovation and a litmus test for the quality of logistics automation. Logistics transportation companies often face many challenges and problems when performing last-mile delivery. These are mainly high order fulfillment costs, strong competitive pressure, and high customer expectations. 

AI in transportation planning and logistics optimization has a positive impact on last-mile delivery in general. It performs powerful computing and machine learning, monitors and analyzes historical data, and predicts certain patterns based on the data. 

AI-powered route planning algorithms make logistics easier and more profitable. Artificial intelligence works in several areas at once.

Route optimization

AI is changing the way we plan and execute routes. It analyzes traffic data, legal requirements, weather conditions, and hazards in real time to dynamically adjust routes to build the fastest and most cost-effective route. That's why CONSOLID's digital logistics ecosystem is a game-changing cargo software solution, providing fuel savings, reducing vehicle wear and tear and carbon footprint, and improving delivery speed and quality.  

Real-time visibility

Parcel tracking is an expected feature for consumers, and its absence leads to frustration and dissatisfaction. The transparency achieved through real-time tracking increases customer satisfaction and overall delivery efficiency. For shipping companies, real-time delivery tracking helps identify inefficiencies so that they can quickly respond to potential disruptions and improve customer satisfaction. An AI-powered WMS controls warehouse operations and automates inventory management, while a TMS system integration optimizes transportation logistics with better routes. Logistics becomes more reliable. 

Predictive analytics

AI helps companies anticipate demand, ensuring that products are available when and where they are needed, and thus better plan their logistics, the number of vehicles and drivers needed, and delivery schedules. This improves profitability and customer satisfaction by reducing the likelihood of shortages and overstocking. To do this, it analyzes past data and market trends to meet customer demand more efficiently. Predictive analytics is paramount during periods of peak demand to meet customer needs and better allocate resources. By accurately predicting demand, AI allows for optimal inventory levels to be maintained. As a result, carriers can better manage fluctuations between the hot New Year's Eve sales period and the “dead zone” that follows. 

Automation of communication with customers

Virtual assistants and chatbots instantly process customer inquiries about delivery status, schedule changes, and other nuances, increasing customer satisfaction. This relieves employees of routine tasks and allows them to focus on more complex issues and intellectual work. As a result, response times are reduced and customer satisfaction increases. 

Sustainable logistics

Companies are implementing eco-friendly delivery methods to reduce their carbon footprint. An expensive but simple way to implement sustainable logistics is to purchase electric vehicles. However, this way requires significant investment. 

Route optimization provided by AI is more cost-effective. It meets the growing consumer demand for environmentally friendly last-mile delivery methods. By сargo сonsolidation, fewer trips are required to transport the same amount of products, thanks to AI algorithms that ensure that each delivery vehicle is loaded to its full capacity.

Let’s Sum Up  

The use of artificial intelligence in logistics operations allows businesses to effectively meet the growing demands of the e-commerce market. AI innovations are transforming last-mile logistics into more efficient, environmentally friendly, predictable, and customer-centric logistics. It is the use of all the available benefits of AI that allows companies to remain competitive without risky investments and drastic changes in their operations. 

This is achieved because AI-driven systems can analyze delivery patterns, identify common points of failure, and suggest improvements to increase delivery success rates. At the same time, they do not require expensive equipment, fleet changes, or staff expansion. By using AI-based solutions, delivery becomes faster, more reliable, and more cost-effective. 

The role of artificial intelligence in logistics will only grow. CONSOLID's customer cases confirm that all areas of AI's impact have long-term benefits not only for the environment, but also for improving logistics efficiency, increasing sales, and customer satisfaction. By using the advanced solutions provided by AI, carriers can not only meet but exceed customer expectations in terms of sustainability and efficiency, but also positively influence customer satisfaction and loyalty.