Last Mile Delivery Firms Adjusting to the New E‑commerce Landscape Across Europe
- Businesses face key challenges to deliver a more efficient ‘right first-time’ service to consumers at scale
- Smartphone solutions are now a part of the last mile technology toolkit for two-thirds (67%) of postal and logistics providers.
Zurich, Switzerland, July 14, 2021: New research from Scandit, the leading enterprise technology platform for mobile computer vision and augmented reality (AR), has found that across Europe, last mile delivery firms perceive inefficiencies (55%), pressure on costs (50%), and the race to gain competitive advantage through new service offerings (45%) as their most cited current top challenges. As consumers have become ever more hooked on ordering goods online during the pandemic, 42% of companies also say they are under pressure to meet demand, which shows little sign of easing.
The research, conducted in Spring 2021 and based on interviews with 118 respondents from many of the world’s largest postal and logistics providers across Europe and North America, also highlighted a global trend* of smartphones displacing legacy dedicated scanners in the hands of employees. Among European respondents, 67% report using smartphones as part of their last mile driver device estate. Respondents are also more likely to exclusively use smartphones (34%) than dedicated scanning devices (32%) as the primary device to support last mile operations.
Pat Nolan, Senior Research Analyst at VDC Research, who conducted part of the research on behalf of Scandit, commented: “At the same time that transport and logistic operations’ top last mile challenges are reducing process inefficiencies and lowering costs, modern customer expectations demand a proliferation of supply chain touchpoints and workflows related to omnichannel fulfilment models and reverse logistics. The new labour and process complexities introduced by these operational dynamics exacerbate last mile challenges, making it especially important for decision-makers to invest in mobile technologies that will set them up for ongoing success in an evolving landscape.”
The most frequently cited reasons for switching to a smartphone-based solution in Europe are adding new features and capabilities (50%) and lowering the total cost of ownership (44%). Improving the user experience and efficiency was also a key motivation for 27% of respondents. 81% of those already deploying smartphones said they are satisfied. User-friendliness (22%), cost reduction (17%) and workflow performance (17%) are the most frequently cited primary benefits.
When asked their most significant investment priority, enhancing delivery apps (43%) was the most common response, followed by a focus on enabling more contactless processes (22%), and a further equal proportion who want to develop new apps with features such as age verified delivery and address changes.
Samuel Mueller, CEO of Scandit, said: “Our research reveals a diverse range of challenges and priorities among last mile delivery organizations as they strive to meet customer expectations and maintain profitability post-COVID. Some are still focused on managing the short term impact and disruptions caused by COVID-19 and the need to scale efficiently.” “However, there is also an emerging trend towards improving user experience through mobile computer vision enabled apps on smartphones that allow couriers to do multiple tasks from one device from digitizing paper trails, ID verification and fast-tracking customer feedback to arranging doorstep refunds for unwanted goods.”
“The last mile is critical to the success of the delivery process and can make or break customer satisfaction. The technology investment decisions that companies make now will give them a decisive advantage over the competition in adapting quickly to meet new customer expectations while balancing efficiency considerations.”
The full report can be found here.
Notes to Editors
118 key stakeholders from postal, parcel and logistics enterprises based in 23 countries across North America and Europe were interviewed by independent agencies via an online survey or telephone. Respondents included stakeholders from 7/10 largest courier businesses worldwide. Research was conducted by ITTS in Europe and VDC Research in North America.
*In North America, 54% of respondents support last mile services using smartphones as their primary device.
- View Scandit’s press kit: https://www.scandit.com/press/
- Learn more about Scandit: https://www.scandit.com/
Scandit enables enterprises and consumers to change the way they interact with everyday objects and augment the physical world with real-time data captured by scanning barcodes and recognizing text, objects, and other visual identifiers using smartphones, tablets, wearables, drones, and robots.
Scandit’s mobile data capture platform is built on proprietary computer vision, augmented reality, and machine learning technologies. Companies in industries such as retail, transportation and logistics, manufacturing, and healthcare can use Scandit’s technology to create and power mobile apps for crucial enterprise workflows like mobile point of sale, mobile shopping, self-checkout, inventory management, and proof of delivery.
Many of the world’s most innovative and successful companies are benefiting from Scandit’s enterprise-grade mobile data capture platform, including Sephora, FedEx, DHL, and Levi Strauss & Co.
For more information, visit https://www.scandit.com.