Dealing with last mile delivery problems in e-commerce using data analytics

Abstract

E-commerce in India has seen an unprecedented growth and changes over the past decade, for durable consumer product market, as well as for e-grocery market. Which in turn has caused increase in direct to consumer deliveries. The movement of goods from transportation hub to destination the last part in supply chain is called ‘the last mile’. Last mile in direct to customer deliveries is the most expensive and least efficient part of the supply chain. The nearer to the delivery destination, the more loss in capacity and efficiency is seen. Inefficient last mile delivery leads to late deliveries, broken promises and unmet expectations, leaving both customers and investors dissatisfied. E-business that delivers goods and services at reasonable cost and time will secure enormous customer loyalty. Different operational channels of logistics and supply chain companies generate large amounts of data which gives an opportunity to change and improve operational procedures, lowering the costs and improve customer experience.