Last-mile carriers must automate to keep up with explosive growth in the final-mile delivery market,. That’s the guidance of logistics technology developer Fleet Enable in two research papers published this month. The software maker said carriers need automation to contain costs while capturing additional revenue.
Austin-based Fleet Enable posted the findings on its website as final-mile delivery firms face surging shipment volumes. Fleet Enable said the final-mile sector would grow 14% to nearly $150 billion by 2025.
It highlighted three growth challenges facing carriers that automation can address:
- Bottlenecks delaying deliveries to customers;
- Rising costs that eat into already thin profit margins; and
- Missed revenue opportunity if increased volumes overwhelm operations.
“Demand for last mile shipping is not going to relent any time soon,” Fleet Enable stated in its research. “Carriers who want to take advantage of the current high demand for last mile delivery without re-inventing or restructuring their companies should turn to real-time, customizable final-mile technology.”
Fleet Enables recommendations are included in two research papers. The first: Building Your Final Mile Business Through Smart Technology, makes the case for automation. The second, Build vs. Buy, recommends working with technology developers steeped in the final-mile industry.
Both reports acknowledge a vested interest: Fleet Enable sells automation software to final-mile carriers. The research points out that several technology companies operate in the market. Fleet Enable says it’s the only company aimed at white glove carriers in the final-mile market. White glove carriers not only deliver but install shipments at homes or offices.
Fleet Enable’s research papers concluded that final-mile carriers should automate basic, recurring, labor-intensive tasks. The benefits would range from faster delivery to reduced operating expense, the research indicated.
“The most effective last mile carrier technology provides a single source of customer and order information, while automating appointment scheduling,” Fleet Enable said in its reports. “Companies can even use automated route optimizers to increase fleet utilization and save dispatchers’ time.”
Growth pressure weighs on final-mile carriers, Fleet Enable’s research found. Consumers recently converted to home delivery now want same-day delivery. Shippers fulfilling customer orders are balking at increased shipment costs. The conclusion from Fleet Enable’s research: technology can help carriers meet customer expectations while benefiting from unprecedented demand.
“Many final-mile carriers find rapid growth to be the greatest challenge of all,” Fleet Enable concluded. “Technology developed specifically for final-mile carriers can overcome the challenge, streamline driver communications, increase revenue, simplify dispatch and accounting tasks, and elevate customer service levels.”