Micro-Fulfillment for Last Mile
What is “the last mile” and why micro-fulfillment is the ideal solution
Nowadays, instead, buying online is a continually increasing habit worldwide. Anyhow, the last step of delivering the parcel to the end customer is still the most problematic part. The last mile is a crucial point in the logistical process on which companies, until now, have never concentrated because they relied mainly on the wholesalers' system.
The term “last mile” indicates the handling of goods from a warehouse to their final destination. This last step in the freight is the most expensive one, accounting for about a third of the total freight cost.
This last step is the most expensive and accounts for about one third of the total cost of transport. And it will continue to grow for several reasons such as: higher customer expectations (fast and same-day deliveries); higher population density (Urban Areas) and greater communication difficulties; development and proliferation of e-commerce with more complex delivery management (delivery).
We need to rethink a new model of “metropolitan logistics”.
This is where Micro Fulfillment enters with its ability to streamline delivery processes, reduce costs and employ fewer staff to carry out goods storage and delivery activities.
The problem of costs and the presence of the people at the delivery of parcels
Besides the skyrocket of logistics costs, there is another problem that has become impossible to ignore: people are not always home when the parcel arrives. Many of us prefer to pick up the parcel in someplace, close to home or the office, in our way home, avoiding the inconvenience and risks of unguarded packages.
The logistics sector is trying to solve these two problems by testing different strategies for example: Autonomous vehicles and drones, Delivery robots, Pickup Towers, Smart lockers “click and collect” etc…
However, every solution proposed to solve the problems of the “Last Mile” listed above has its “Pros and cons”.
Micro-fulfillment and logistics 4.0: all solutions in one system.
For us at OTO Solutions Micro Fulfillment is certainly the ideal solution to solve the logistic problems related to the Last Mile.
By providing support for pickup and not having to use traditional storage systems, in fact, the micro-fulfillment center is a valid strategic response to solve last mile problems, with clear advantages of cost savings and environmental sustainability.
This solution of logistics 4.0, prepares orders quickly, can store them until needed, and deliver them in seconds, either to the customer or to the employee that will bring to the customer in the curbside: all the solutions in one system.
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