Logistics companies play a crucial role in ensuring that goods reach their intended destinations efficiently and effectively. However, in recent times, both carriers and transportation providers have faced significant challenges in maintaining a resilient supply chain until the very last mile. These challenges have been brought about by various factors, including the COVID-19 pandemic, the rise of e-commerce, and changing consumer expectations. In response to these market pressures, logistics companies are turning to innovative technologies to optimize routing, planning, and executing their order journeys.
At Milkman Technologies we focus on the idea of building a risk-resilient supply chain. As we mentioned in our newsletter, this is easier said than done but there are essential elements that can be addressed through technology. As specified in this SupplyChainDive article, these elements are agility, visibility, diversification, standardization of processes and digitization. The pressure to make these changes is obvious: “supply chain disruption costs 45% of one year’s profits on average over the course of a decade”.
Partnering with the right technology provider facilitates organizations to overcome these pressures. We identified four key technological pieces that strategically address these needs.
Logistics companies play a crucial role in ensuring that goods reach their intended destinations efficiently and effectively. However, in recent times, both carriers and transportation providers have faced significant challenges in maintaining a resilient supply chain until the very last mile. These challenges have been brought about by various factors, including the COVID-19 pandemic, the rise of e-commerce, and changing consumer expectations. In response to these market pressures, logistics companies are turning to innovative technologies to optimize routing, planning, and executing their order journeys.
1. Routing Optimization Software
The first key technology that logistics companies are turning to is route optimization software. This software uses algorithms to analyze and identify the most efficient delivery routes. By optimizing routes, logistics companies can reduce transportation costs, improve delivery times, and minimize the environmental impact of their operations. What many companies do not take into account, however, is that a routing software’s capabilities are nowhere near the actual needs to deliver an optimal experience in home-delivery. While this is a key technology that is necessary, it must be complemented with additional features that elevate it beyond a legacy routing software.
2. Real-time Tracking and Monitoring
One of these complements mentioned earlier, for example, is real-time tracking and monitoring. This technology is becoming increasingly popular among logistics companies. Real-time tracking enables organizations to follow every movement of their goods from the warehouse to the customer’s doorstep. This allows them to identify potential delays or issues and take corrective action before they impact the delivery time. Not only does this technology serve an operational purpose, but it also fulfills a key role
in customer satisfaction and retention by providing customers with visibility into the status of their orders.
3. Predictive Analytics for Forecasting
Another important component to consider is predictive analytics to forecast demand and optimize inventory levels. Predictive analytics uses historical data and machine learning algorithms to predict future demand for products. By optimizing inventory levels based on predicted demand, logistics companies can reduce the risk of stockouts or overstocking, which can lead to significant costs.
4. Automation
Finally, logistics companies are turning to automation to improve efficiency and reduce costs. Automation technologies streamline repetitive tasks and processes, allowing logistics companies to focus on more strategic activities. For example, companies can automate data entry and processing, as well as optimize delivery routes and predict demand. This is the technology that encompasses all features and
components of an effective logistics operation into an intelligent environment.
In conclusion, logistics companies are facing significant challenges in maintaining a resilient supply chain until the very last mile. However, by adopting innovative technologies such as route optimization software, real-time tracking, predictive analytics, and automation, logistics companies can optimize their operations, improve efficiency, reduce costs, and meet changing customer expectations. Antonio Perini, CEO of Milkman Technologies, stated this clearly in The Milkman Talk podcast: “I think that the vision is really not to change but to add. The complexity is getting harder […] many things are changing and evolving. We are adding more complexity, but the technology is available to tame all this last mile complexity; [technology] that really embraces the entire set of potential expectations from the final market when choosing a product online for example”. As the world continues to evolve, logistics companies that embrace this vision will be better positioned to succeed and thrive in the future.
Born as a logistic carrier in 2015, Milkman experienced the challenges of an industry that relies on complex fulfillment networks supported by disjointed digital systems. Overcoming these silos and inefficiencies became our main goal. Milkman Technologies is now a leading technology provider for logistics operations, counting with €39 million in funding and 20+ customers across Europe.
This is the goal of Milkman Technologies, a scale-up offering its First and Last Mile Delivery Platform, which leverages AI-driven Continuous Intelligence to provide full control and visibility of transportation costs, process automation, information security and digitization. With real-time data and analytics, the technology enables organizations to face the current challenges in logistics and take action to resolve them, reducing lead times and improving overall efficiency.
