VF: I believe drones will have a place for certain deliveries particularly for lightweight, high-value goods. Bridging the last mile between Web2 &Web3 with humanity, purpose and Creativity. 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. Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients. + 0 %. According to Accenture, 94% of Fortune 1000 companies have seen supply chain disruptions as a . Even before the pandemic, this part of the supply chain was under pressure. 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. First, the orders sent in by shoppers are digitally recorded into a centralised system. Sustainability is not a minimum requirement anymoreit has become a key differentiator in the last mile. You can read the details below. The Accenture report, The Sustainable Last Mile: Faster. He works with global retail clients across sectors to define and support end-to-end strategic business transformations. Inefficient route planning. The Accenture Logistics Platform offers several unique capabilities to help organisations transform traditional delivery models, all of which are customisable for your needs. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); The model estimates the impact on outputs such as emissions and traffic congestion, based on inputs including local fulfillment centers prevalence, population density, average distance travelled per parcel, delivery vehicle mix and consumer demand projections. The greatest CO reductions could be achieved in London (144,000 tons), followed by Chicago (68,000 tons) and Sydney (52,000 tons). Please try logging in with your registered email address and password. googletag.enableServices(); Finally, the report said freight planners need to better harness data to improve planning and routing. For example, retailers and omnichannel fulfilment, where they use their stores to place inventory closer to customers than ever before. Looks like youve clipped this slide to already. Repurpose, retrofit and share assets like stores, infrastructure and fleetswhile investing in green technology and evolving regulations to support these innovative approaches. Addressing the business and economic impact. The last mile ecosystem is at a tipping point. Not too long ago, retailers put a large part of their investment and focus on innovation in the frontend, but only up to the point of order placement. Something unexpected happened to last-mile delivery during the pandemicit got greener. These include: Local fulfilment. The last mile can be different toomuch, much greenerif the ecosystem comes together to act on sustainable last-mile practices. 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. Go the other way, and things worsen unchecked. Chicago would see a 13% decrease, saving 127 million miles, and Sydney would see a 2% reduction or 16 million miles. Minimizing e-commerces carbon impact: How one company is accomplishing it. Parcel drop density rose. Senior level assignments in Project Rollout/ Operations /Planning/ Installation & Commissioning / Maintenance / Testing with an organization of repute. . Using local fulfillment for even half of e-commerce orders between 2020 and 2025 could lead to significant impacts. - 0 %. An at-a-glance view of how to make the last mile faster, cheaper and greener. 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. As a share of the total cost of shipping, last mile delivery costs are substantialcomprising 53% overall. For each of these segments, last-mile options should be identified and assessed on their attractiveness and their ability to meet customer and business requirements. Retail footprints are different. With so many moving parts, last-mile logistics has always been the most expensive and problematic part of the supply chain, but, following the meteoric rise of ecommerce during repeated lockdowns, the pressure on last mile has never been greater. This opens up exciting possibilities for post and parcel and logistics organizations to create a more sustainable last mile. In between the warehouse or other transportation hub and dropping off the package lies a minefield, and that's important for leaders to understand. Getting it wrong leads to delayed deliveries and higher costs. Managing Director Accenture Strategy, Retail. 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. Before joining FreightWaves, he was previously responsible for the editorial quality and production of Fleet Owner magazine and fleetowner.com. googletag.cmd.push(function() { The result? Complex supply chains and greater costs. However, neither do consumers' expectations of delivery services. According to EcoCart, which provides a carbon offset option for online shoppers on the websites of hundreds of retailers, about 25% of those presented the option make the eco-friendly choice. The pandemic radically accelerated local or market-based fulfillment, permanently altering supply chains where inventory is placed closer to customers than ever before. E-commerce platform Shopify (NYSE: SHOP) said greenhouse gas emissions in the atmosphere are at their highest levels in history, sitting at 400 parts per million (ppm). According to research by APQC, an organization focused on benchmarking, best practices, process and performance improvement, and knowledge management, 47% of consumers want real-time status visibility during the last mile of their delivery. Last-mile delivery encompasses the movement from the transportation hub to the final customer, which today often means home delivery. The Last Mile Problem. The company suggested e-commerce retailers provide incentives and options to buyers to choose greener options. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); The growing number of partners requires companies to re-think their operating model for logistics and take on more of an orchestrator role for their fulfillment function. The whole last-mile ecosystempost and parcel organizations, retailers, delivery companies, governments and consumersis at a tipping point. According to Accenture, "Last-mile delivery accounts for 53% of the total cost of shippingand 41% of total supply chain costs. It involves moving goods from the transportation hub to its final delivery destination, which implies it is the final stage of the order process. The result? The only way to address the challenges associated with the last mile is by prioritizing its management with technology; there are no second chances to make a first impression. Ship from store and curbside pickup emerged. But for carriers, the last mile is one of the most challenging and costly segments of the supply chain. These include incentivizing greener choices, rethinking asset use and harnessing data and analytics. }); 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. The project is about predicting the Life insurance agent bonus. Liked by Harikrishnan N That number jumps to more than three-quarters for consumers under 30 (77%). To successfully meet the new customer requirements, retailers need to build the right collaboration models with their last-mile partners and proper technological infrastructure. The application uses real time tracking capabilities to provide critical data and information quickly and easily. Be a first mover. 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. It means no lost stock, better use of resources, and fewer returns. In a talk at the Gartner Supply Chain Symposium/XPO in 2022, Gartner VP and analyst Tom Enright said, "53% of shipping costs and 41% of total supply chain costs are tied to the last mile." Even though were still a few years removed from a logistics plug-and-play network, where logistics partners are continuously alternated based on available supply and offered service levels, we already see a larger number of logistics partners rotating with more frequency. Act on real-time insights into consumer preferences and purchasing patterns to innovate and optimize inventory and route management for a lower last-mile carbon footprint. googletag.pubads().collapseEmptyDivs(); But for carriers, the last mile is one of the most challenging and costly segments of the supply chain. Rethink asset use. However, the growth trajectory of last mile grocery industry is likely to differ across geographies depending on the maturity level of last mile change enablers such as infrastructure, technology, regulations, and . Every player can start to make a difference with these priority actions. On the back of a fast-growing base of 120,000+ monthly transacting delivery partners, Shadowfax serves over . Cheaper. Increasing cost levels, growing service requirements and even greater supply chain complexity. googletag.cmd.push(function() { During the last two year's Ged led multiple successful large end-to-end deliveries in the digital commerce domain with activities including strategy & business transformation, user experience, digital marketing and ongoing client support. Even still, there is no question that many Americans are concerned about the impact their shopping habits are having on the environment. Moves up/down stairs, optimized for last mile delivery of small parcels or to follow a person. This technology supports final-mile challenges, helps optimize day-to-day operations, and reduces costs by streamlining workflows. Supply Chain Digital is the No.1 Magazine, Website, Newsletter & Webinar service covering Supply Chain, Procurement, Strategic Sourcing, Logistics, Technology & Sustainability - Supply Chain Digital connects the world's largest supply chain & logistics brands with supply chain news, articles, keynote interviews, company reports, white papers, videos and webinars as well as the globally expanding Procurement & Supply Chain LIVE conference & exhibition - London, Dubai & New York. googletag.cmd.push(function() { The sustainability gains that came from the pandemic were unintentional. The whole last-mile ecosystempost and parcel organisations, retailers, delivery companies, governments and consumersis at a tipping point. This means investing smartly in innovative technologies and balancing high- and low-impact opportunities. Go one way, and it can create a truly sustainable last milefaster, cheaper and greener. Stay ahead of the competition with the Accenture Logistics Platform, an innovative delivery solution that enables fast, flexible last mile delivery. Although it's technically the shortest distance in a product's journey, it's usually the most expensive, often accounting for 53% of the total cost of delivery. In this edition, The Next Normal explores what's ahead in last-mile parcel delivery. Cheaper., studied the use of MFCs in Chicago, London and Sydney. 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. The king of the genre, Amazons (NASDAQ: AMZN) Jeff Bezos, claims that e-commerce is more environmentally friendly than in-store shopping. The Accenture Logistics Platform is a next-generation delivery solution that enables carriers to meet expectations for customers and retailers. 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