In the logistics industry, the battle today is for the last mile. Artificial intelligence,
Big Data, and the Internet of Things optimize processes and provide a competitive advantage.
The pandemic was a turning point for e-commerce and home deliveries. Once this mode of shopping became established, the customer experience took center stage, with the “last mile” playing a leading role: consumers want faster and more agile deliveries, the
ability to choose where, when, and how their order is delivered, and to reduce waiting times to a minimum. This is where logistics increasingly relies on data management to stay competitive.
Artificial intelligence, Big Data, and the Internet of Things are now key components in achieving a Logistics 4.0 that can respond to the new demands of consumers.
The supply chain of this industry generates a multitude of data that needs to be organized and structured to be converted into knowledge and added value.
However, investment in digitalization remains a challenge for Spanish logistics.
Although e-commerce sales volume increased by 24% in 2020—and by the end of February 2022, this growth was even 11 points higher—only 36% of companies in the sector have begun their digitalization process.
Technology to Win the Last Mile
If the decisive battle in the logistics market today is fought in the last mile, shortening times and making the entire process more agile is vital—from comprehensive planning to route optimization, order tracking, security procedures, and more.
On one hand, advances in the Internet of Things and robotics have made “smart” warehouses a reality. Big Data and algorithms allow for the most optimal parameterization of logistics management, merchandise control systems, and deliveries.
On the other hand, the transportation route affects the entire logistics process, resources, and the final customer experience. Therefore, optimizing routes using Big Data involves choosing the most efficient and agile mode of transport. Algorithms help provide real-time information to estimate delivery times for each shipment. This leads to cost reductions, as such optimization saves time and eliminates inefficient practices.
While better managing time, transparency is achieved. Sensors and other tracking tools allow for detailed monitoring of the merchandise journey, enabling easy delivery planning, eliminating blind spots, and updating all information in real-time.
All of this increases profitability because it helps improve response capacity and provides a clear and accurate view of the entire process. It enables demand forecasting and the identification of new opportunities to make the business more efficient. Finally,
there is a substantial improvement in the customer experience, as an optimized supply chain allows for more efficient responses to demands. Delivering products on time is now a business imperative, especially considering that the purchase experience is a decisive factor for repeat purchases and customer loyalty.
