Logistics sector shifts focus to cost and speed for last-mile delivery

Logistics sector shifts focus: A recent report has highlighted a significant shift in priorities for firms in the logistics business, with cost and speed now taking precedence over other factors in last-mile delivery. The Last-Mile Trends Report 2024, unveiled during 'The Last Mile Leaders Event' by technology platform FarEye in collaboration with Microsoft, indicates a change from the previous focus on cost and satisfaction.

Kushal Nahata, co-founder and CEO of FarEye, emphasised the increasing importance of autonomous drones in urban deliveries, predicting that they will handle 30 per cent of such deliveries within the next five years, leading to a dramatic reduction in delivery times and costs.

The report, based on insights from over 300 leaders across five continents, also revealed that more than 50 per cent of participants now offer same-day or next-day delivery services. Additionally, 80 per cent of supply chain leaders consider measuring the cost of delivery a top priority.

FarEye has launched the 'last-mile innovation nexus' initiative to help startups in the logistics sector raise funds and receive mentoring from global experts. Gautam Kumar, COO and co-founder of FarEye, highlighted the importance of adopting technologies like AI, robotics, and data analytics to enhance logistics efficiency.

With urban delivery traffic projected to increase carbon emissions by 32 per cent by 2030, Nahata stressed the importance of prioritising sustainability. He noted the surge in electric vehicle adoption and government initiatives like the FAME scheme in India as signs of a growing commitment to greener logistics.

"As industry leaders, we must place sustainability at the forefront, meeting environmental and stakeholder expectations. It's clear that sustainable logistics isn't just a choice; it's our collective responsibility and competitive advantage," Nahata said.

(with PTI inputs)