Gati's Dynamic Route Optimization: The Future Of Last Mile

This is how a logistics company optimised its operations to meet increasing demands.

- G.S. Ravi Kumar

The e-commerce revolution has turned the ‘traditional’ supply chain on its head. From speed of delivery to increased expectations on “user experience”. This change has in large part been driven by the empowered consumer of today. However, it is in the last-mile that many of these challenges manifest.

The expectations of buyers are increasing and therefore it is necessary for the industry to come up with a robust and strong delivery system. The sector has its own challenges of high costs and inconsistencies associated with the last mile delivery process. If the delivery does not happen at the first go, it results in second or third delivery attempts leading to loss of time, money and poor customer experience.

The major chunk of the total delivery cost comes from the last-mile. Current expectations from customers are visibility of shipment movement, on demand delivery, particular time slot delivery, etc., which has put a greater strain on the costing. In addition, the consumers want to see and track the shipment movement. The attrition rate in the logistics industry is on rise and the new delivery personnel lose a lot of time in reaching the final destination due to newer areas, improper address etc.