123 Last mile logistics 2021-2: New state of the industry report

123 Last mile logistics 2021-2: New state of the industry report

As the global pandemic recedes, this report analyses the last mile challenges and opportunities facing retailers and 3PLs and major industry trends going into next year.

Last mile logistics is booming. You only need to take a cursory look at the amount of capital being invested in this industry to understand that. It’s a fertile time for providers in this space. And the huge influx in home deliveries resulting from the pandemic has seen demand skyrocket for innovative solutions that help retailers and logistics companies manage one of their largest supply chain costs.

Forecasts indicate that the EU and Great Britain could see as many as 20 billion B2C deliveries a year as soon as 2025. In 2021 alone, a 30% increase is expected in ecommerce revenues across Europe.

last mile logistics growth

(Source 1, Source 2)

As tantalising as the potential rewards may be, the fact remains that margins on deliveries remain incredibly squeezed. After all, the last mile may be the shortest leg of the delivery journey, but it accounts for more than 50% of total shipping costs. And it accounts for a similarly large proportion of total emissions per package.

This report analyses new and recent trends in the last mile industry. We assess some of the methods that agile retailers and logistics companies are using to cut their costs and emissions. And the continuing role of third party logistics in supply chain management. The global pandemic may be receding, but its effects are still being felt in logistics. 

As shippers scale up ever-more complex delivery networks to meet this burgeoning demand for deliveries and heightened consumer expectations for instant gratification, it becomes increasingly difficult to maintain clarity across their last mile logistics.

The added pressure to lower emissions only increases the need for new solutions to these challenges, driven by innovations in automation and a reframing of perspectives among senior leaders from delivery operations to delivery experiences.

We will consider:

  1. The Aftermath of the Pandemic on Last Mile Logsitics

  2. More Complicated Delivery Networks

  3. Greater Degrees of Automation

  4. The Continuing Rise of Experiential Deliveries

  5. Emissions Continue Upwards Trajectory


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