The challenges of last-mile delivery

Worldwide parcel volumes are growing every year at 17% and are expected to reach $100 billion in 2020, with e-commerce representing a major portion of this volume.

E-commerce Growth, Evolving Consumer Expectations, and Greater Enterprise Awareness of Last-mile Delivery.

With consumers expecting faster delivery and a pleasant experience all the way to the delivery stage, more and more businesses are searching for a solution in the last-mile field.

They all wish to streamline their operational expenses and have the same target – the efficient delivery of products with minimum expenses.

The demand for fast and cheap shipping takes a serious portion of the profits of shipping companies, which requires them to find a solution and lower the costs.

The challenge is to complete more deliveries with less time, manpower, and resources. Any solution that increases efficiency is welcome.

How AI is a factor

Amazon is obviously the main player in this area, and according to the predictions, by 2021, Amazon's market share will account for 50 percent of the entire e-commerce retail market in the US.

Amazon’s dominance leaves other businesses looking for ways to compete with cost-effective technologies that enable low prices and a high-quality customer experience.

In recent years, there has been an increase in the awareness of artificial intelligence. There is no doubt that this technology can help perform complex calculations as well as optimize and solve numerous problems in many areas.

 

Artificial intelligence and machine learning based on historical information help companies predict the future, such as the number of deliveries per day, the number of deliveries in each specific area, the busy and less busy times, and many other critical parameters and patterns essential for optimal route planning. Combing information received from real-time orders with AI models based on historical data allows companies to plan much more efficient routes, which is the key for a business to reduce its operational costs, offer accurate delivery times, and increase customer satisfaction.

The PickPack platform uses unique algorithms based on artificial intelligence and machine learning\deep learning to aid with route planning and optimization, providing a highly effective solution for the last-mile challenge.

 

Our experience shows that our customers double their efficiency by using our AI-based solution instead of the traditional platforms they have used in the past.