How Technology Is Revolutionising the Last Mile Delivery Experience

The last leg of a delivery journey — commonly referred to as the last mile — has quickly become one of the most important component of the whole logistics process. One way or another however you are delivering to Australian customers or conducting significant volumes of e-commerce orders as a global business. Of course the Last Mile Delivery experience can greatly affect customer satisfaction if not delivered 'properly'.

In an era when customers are used to fast, flexible and transparent deliveries, businesses cannot relegate the final mile to an afterthought. However, with advances in technology, the way we deliver products to their final destination is changing, creating efficiencies for the business and higher customer satisfaction.

In this article, we will examine the impact of technology on last mile delivery experience and why Australian businesses need to consider new ways to innovate if they want be competitive.

The Last Mile Challenge

The last mile is widely regarded as the most expensive and least efficient part of the delivery process. It is also highly personalized logistics — involving short delivery runs, local traffic, unpredictable drop-offs and direct contact with the customer.

In Australia, the unique challenges of the last mile include:

• Long distances to travel for delivery

• Traffic congestion in metropolitan areas

• Limited access to rural areas

• High labour and fuel costs

• Increasing consumer expectations for next or same day delivery

Given this complexity, it is easy to see why Last Mile Delivery experience is such an important battleground for innovation in logistics, and technology is leading the way.

1. Real-Time Tracking and Delivery Transparency

One of the most impactful developments in the last few years has been the introduction of real time delivery tracking. Today's consumers want to know exactly where their package is all times. With GPS enabled tracking that is now commonly integrated into mobile apps and customer dashboards, customers can see a live view of their delivery journey.

They can follow their parcels all the way from warehouse dispatch to arrival at their doorstep. They get delivery time estimates and notifications when the courier is in their vicinity. The clarity that exists in this space builds trust, reduces missed deliveries, and overall improves the last mile delivery experience.

It also has the impact of reducing the burden on business customer support teams — when fewer 'where's my order?' inquiries means more time for higher-value customer service.

2. Route Optimisation for Faster Deliveries

The painstaking days of delivery drivers determining their routes are over. Now, logistics providers can use route optimisation software to realise the best route based on real-time data including traffic, road closures, weather and delivery time windows.

This technology allows logistics providers to:

• Reduce carbon emissions and fuel use

• Minimise delays

• Improve delivery capacity

• Reduce operational costs

For Australian courier networks that serve urban suburbs as well as rural and remote areas, smarter delivery routing keeps every delivery timely and cost-effective, creating a smoother last mile delivery experience for businesses and their customers.

3. Smart Lockers and Click & Collect Solutions

For customers who are rarely home or want to be more in control, smart lockers and click & collect hubs are changing the game in parcel collection. Smart lockers are technology-driven lockers that can be found in public locations, such as shopping malls, petrol stations, or retail stores, giving recipients relaxed convenience of picking up their parcel at their leisure.

When recipients' item is delivered, they are given a unique access code, making it possible to pick up their parcel 24/7 during times and in locations they want to. Smart lockers take away the customer's frustration about missed deliveries and provide a flexible delivery alternative to traditional drop-offs at home.

Smart lockers also look to enhance the last mile delivery process for retailers and logistics companies while reducing failed deliveries and redelivery costs for logistics companies — a win-win.

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4. AI and Predictive Delivery Insights

Artificial intelligence and machine learning are increasingly being leveraged for demand planning, uncovering delivery bottlenecks, and determining the best location for inventory placement.

For example, analysing customer buying behaviour and delivery patterns can help businesses spot periods of anticipated high demand and locate inventory closer to areas with a higher volume of daily orders. By locating popular products more in metro-based micro-fulfilment centres, for example, delivery times may be improved substantially.

AI can also assist when it comes to providing more accurate estimated delivery windows, a strong focus for improving the customer experience. When customers know when they can expect an order (within a 1-2 hour time frame), there is a higher chance that they will be satisfied even if the delivery takes a day or two longer.

5. Contactless Delivery and Mobile Proof of Delivery

The COVID-19 pandemic has hastened the adoption of contactless delivery services. Even in 2022 many Australians still want nothing more than minimal contact at their doorsteps—and contemporary technology has made that process as seamless as possible.

Mobile applications have improved the courier's ability to provide photographic proof of delivery, digital signatures or one-off pass codes to ensure secure drop offs. Customers get instant confirmation and are less likely to dispute the delivery, improving customer confidence all round.

For the logistics company it's about improved accountability and documentation of an audit trail for every delivery.

6. Drones and Autonomous Vehicles: The Future of Last Mile?

While still in its early stages in Australia, drone deliveries and the trialling of autonomous delivery vehicles are occurring globally. These technologies can lower labour costs, increase speed of delivery in congested or difficult areas to reach and improve upon the environmental impact of traditional delivery vehicles.

A company like Wing (a subsidiary of Alphabet/Google) has already trialled a drone delivery service in Canberra and Logan, QLD, and as regulations catch up, we could see drone technology as part of the last mile delivery experience in suburban and regional Australia increasingly as part of that last mile experience.

7. Integration with E-commerce Platforms

Modern delivery technology is not autonomous — it is woven into e-commerce platforms. This ensures that the order data flows seamlessly from the checkout to delivery, and provides for:

• Automated labels

• Live inventory updates

• Integration of tracking on the store's website

• Immediate customer notifications

For online retailers, this creates a seamless and professional customer journey, from purchase to delivery.

8. Data-Driven Decision Making

Every delivery generates data — and with the right tools, that data becomes powerful. Delivery platforms now offer advanced analytics that help businesses understand:

• On-time delivery rates

• Delivery success vs. failure

• Peak times and bottlenecks

• Customer satisfaction scores

By acting on these insights, businesses can fine-tune their operations, offer better service, and boost brand loyalty through an improved last mile delivery experience.

Final Thoughts

Our world is driven by convenience and speed, which makes the last mile experience all the more valuable. It's time for the Australian market to move away from legacy logistics models and be more innovative in their use of technology - especially in e-commcerce and retail.

From real-time tracking and AI-enabled insights to smart lockers and contactless deilveries, each innovation that is made brings businesses one step closer to providing consumers with a great customer experience, not just a delivery. The businesses that view last mile experience technology as an investment today will be the leader of their industry tomorrow - they will be faster, smarter, and more connected.

Stephanie is a passionate writer specializing in logistics, lifestyle topics.