The logistics industry shifts focus to cost and speed for last-mile delivery – Republic World

Last mile delivery | Image: Pexels

Logistics sector shifts focus: A recent report has highlighted a significant shift in the priorities of companies in the logistics sector, with cost and speed now being prioritized over other factors in last-mile deliveries. The Last-Mile Trends Report 2024, unveiled at ‘The Last Mile Leaders Event’ by technology platform FarEye in partnership with Microsoft, signals a change from the previous focus on cost and satisfaction.

Kushal Nahata, co-founder and CEO of FarEye, highlighted the increasing importance of autonomous drones in urban deliveries and predicted that they will handle 30 percent of such deliveries within the next five years, leading to a dramatic reduction in delivery times and – cost.

The report, based on insights from more than 300 leaders across five continents, also revealed that more than 50 percent of participants now offer same-day or next-day delivery services. Additionally, 80 percent of supply chain leaders consider measuring delivery costs a top priority.

FarEye has launched the ‘last-mile innovation nexus’ initiative to help startups in the logistics sector raise funds and receive guidance from global experts. Gautam Kumar, COO and co-founder of FarEye, emphasized the importance of adopting technologies such as AI, robotics and data analytics to improve logistics efficiency.

With urban delivery traffic expected to increase carbon emissions by 32 percent by 2030, Nahata emphasized the importance of prioritizing sustainability. He noted the increase in the use of electric vehicles and government initiatives such as the FAME program in India as signs of a growing commitment to greener logistics.

“As industry leaders, we must put sustainability at the forefront and meet environmental and stakeholder expectations. It is clear that sustainable logistics is not just a choice; it is our collective responsibility and competitive advantage,” said Nahata.

(with PTI inputs)