The Power of Data Analytics in Last Mile Delivery

According to McKinsey, nearly 90% of organizations that are outperforming peers are allocating more than half of their budget to improving the last mile. Analytics can be used to analyze and improve customer behavior, optimize inventory management, and improve marketing strategies. Last mile analytics must be gathered, analyzed, and interpreted to improve business processes.

To further understand and imbed more analytics organizations must:

1. Utilize current data and continuously improve sources for new data
2. Leverage technology and people to improve data quality and work within policy restrictions
3. Implement new analytic insights into your organization

Last mile analytics can also help control costs. With online spending on the rise, many transportation providers have had to increase prices and find ways to keep up with the changing environment. Analytics helps adapt to market demands while also preparing for potential disruptions.

Some ways analytics and automation can help address costs:
– Gives the ability for real time data and updates
– Helps improve transparency in the network
– Reduces delays through historical data
– Analyzes trends and helps predict future problems

Historically, the last mile has been the least automated step in the delivery process. By increasing the use of analytics, organizations can bridge the gap and solve the last mile problem. In doing this, organizations can resolve dilemmas and drive business value.