The ability for one person to buy a simple avocado and have it delivered to the door in 15 minutes with a swipe of a supermarket app may seem like the ultimate in personal service, but is it realistic or sustainable in a post-COP26 world? ?
The pressure is on retail and delivery companies to innovate not only to meet consumer wants and demands, but to do so with respect for the environment and move towards net zero carbon emissions, as called for by the United Nations Conference on Climate Change.
For businesses today struggling to keep up with ever-increasing demand and ever-rising costs, a greener future may seem a long way off. But how can a company explore the potential of new innovations, such as drones, autonomous robots, or electric vehicles, when struggling to do business as usual? Is it possible to meet the green expectations of some customers while fostering greater environmental awareness in others? How can companies achieve this while maximizing existing fleet capacity and minimizing the impact on the bottom line?
embedded behavior
For retailers, while consumers' willingness to shop online has been a lifeline during the pandemic, it has also created a logistical, financial, and environmental headache. Vehicles of all sizes are constantly traversing cities and towns. Clogged roads and rising emissions. Poor scheduling and poor customer communication decrease delivery success rates, leading to increased delivery costs. Businesses struggle with the unsustainable cost of returns to both the bottom line and the planet. The essential home delivery business model during an extraordinary event like a global lockdown is in no way sustainable in the future. However, they have changed and new expectations have been set for customers.
unsustainable model
Companies are testing a large number of new vehicles and delivery options in a bid to reduce reliance on drivers and reduce emissions. Several retailers and delivery companies have announced the transition to fleets of electric vehicles, although with the rising cost of electricity and ongoing concerns about the environmental impact of battery technology, such decisions are far from easy. Drones are destined to play a vital role, according to several studies on the use of drones in logistics this could mean great savings and increase in productivity.
In urban areas, the role of autonomous robots is being explored, especially for the delivery of take-out food and the use of electric bicycles as an efficient alternative for the delivery of food, packages and heavy goods. Innovation is exciting, but how can companies determine the right approach to meet today's customer demands and prepare for an environmentally minded future? For many, uncertainty leads to decision paralysis.
act now
At this time, companies should be able to auto-route their fleet. Make sure that bicycle routes include specific options for this type of vehicle (shortcuts, exclusive lanes...) to maximize the value of the investment. The use of the latest scheduling and routing software and the ability to take into account any relevant parameters, allows companies to maximize the utilization of the current fleet and experiment with new types of vehicles. The use of artificial intelligence and machine learning can help identify specific factors and trends in fleet operations that would otherwise remain hidden.
inspire change
Using this information will help companies increase visibility into green delivery options. For most customers, the most important thing is punctuality, comfort and security in delivery. Meeting these expectations minimizes reshipping costs, which represents a huge financial and environmental burden. A growing number of companies are adding greener delivery options by pushing customers in this direction by offering delivery in a free or discounted delivery slot.
This approach is also related to the growing demand for collaboration between delivery companies and the use of local hubs. It does not make sense for several delivery vehicles to circulate on the same streets simultaneously. Collaboration between companies to batch deliver to specific areas offers potential benefits in both operational costs and improved carbon footprint.
Conclusion
Few companies can predict what this market will look like in the next three to five years. Consumer demands are unlikely to slow, but profitable business will be difficult with rising fuel costs, driver shortages and the expansion of Clean Air Zones. The environmental bill may hurt the delivery business. Alternatively, innovative vehicle technology combined with a collaborative approach to minimizing the number of vehicles on the road could transform the carbon footprint and make home delivery a more sustainable option.
No business can afford to wait to find out what will happen. Businesses must act today to meet current customer demands, but experimentation will also be key as the home delivery model evolves. The more diverse the fleet, the more necessary it is to have a robust scheduling and routing solution that can maximize efficiency and manage complexity in real time.
Fuente: Logistics Business