Last mile e-commerce

E-commerce: The essentials of last-mile delivery and its ecological challenges

by | Mar 2, 2024 | 0 comments

The last mile is a crucial stage for any e-commerce site. The reputation of an online store depends to a large extent on this final delivery stage, the last few miles a product has to travel, and its first contact with the consumer. With the rapid expansion of e-commerce, this phase of the supply chain has become both vital and complex. Satisfying customers, who are increasingly demanding in terms of delivery times and costs, requires careful consideration of various factors.

Theenvironmental footprint of transport and the need to limit it are at the heart of corporate concerns. This article explores the logistical constraints of the last mile, highlights its major ecological impacts and proposes innovative solutions for e-commerce sites seeking to reconcile operational efficiency and environmental responsibility.

What is last-mile delivery?

Last-mile logistics consist in delivering goods to the home or to the last distribution zone (grocery store, supermarket, etc.). This is the very last stage in the delivery of a product to the final consumer.

With the rise of e-commerce, this phase of the supply chain has become the most delicate and complex. It is essential to customer satisfaction, as customers are increasingly demanding in terms of delivery times and prices. It requires the consideration of various internal and external factors to ensure a reliable, fast and efficient logistics service. Against this backdrop, last-mile companies face a number of constraints. Here are 3 of them.

1. Reduced urban mobility

Traffic in urban areas is problematic, due to traffic jams, loading and unloading schedules, difficult-to-access areas (narrow lanes, one-way streets, etc.) and the growing urban population and its needs. The introduction of Low Emission Zones (ZFE) in more than 11 French cities is further restricting deliveries. These zones gradually restrict access to city centers to the most polluting vehicles, according to their Crit'air rating.

2. An unsuitable logistics model

Warehouses are generally located outside cities. Route management applications and tools often fail to take into account the specific characteristics of vehicles and their inability to use certain routes (height restrictions under bridges, narrow or poorly maintained streets, etc.). Transport companies therefore need to take all these variables into account to organize their delivery rounds and honor the promises made to consumers.

3. A very high cost

The complexity of urban delivery significantly increases costs for the company, in addition to the price of fuel. Yet consumers are demanding ever-faster delivery at lower rates. Transport specialists must therefore innovate to offer services adapted to this demand, while limiting the sector's carbon footprint.

The ecological impact of the last mile: 6 environmental challenges

In addition to the organizational and economic constraints of last-mile logistics, this field presents ecological challenges. Here are 6 environmental impacts of urban delivery.

1. Deteriorating air quality

The last mile produces between 20 and 30% of greenhouse gases. This is its main ecological impact. This is due to the circulation of diesel delivery vehicles, and is exacerbated by traffic congestion. In fact, a van emits more carbon equivalent in a traffic jam than when it is driving normally.

2. Increase in respiratory illnesses

These GHG emissions deteriorate air quality in city centers and threaten the health of local residents. In urban areas, pollution levels exceed the thresholds set by the WHO (World Health Organization). They are responsible for a range of health problems for residents:

  • Respiratory illnesses: bronchiolitis, rhinopharyngitis, etc.
  • Impaired ventilatory function: reduced respiratory capacity, excessive coughing or asthma attacks, etc.
  • Increased eye irritation.
  • Bronchial hypersecretion.

3. A threat to urban biodiversity

Nature is also important in the city: pets, birds, insects and micro-organisms. The pollution generated by heavy vehicle traffic has a major impact on urban wildlife. Logistics also require a lot of space and land (storage warehouses, parking and delivery spaces, etc.), which reduces the scope for parks and green spaces.

4. The expansion of land artificialisation

Urban logistics cannot function without storage and parking spaces. This requires an expansion of infrastructures and buildings dedicated to the delivery and processing of goods flows. This has a major impact on soil health.

5. Energy consumption

To circulate, vehicles consume renewable or non-renewable energy. The operation of logistics hubs and warehouses requires a lot of electricity and water. This is a major source of GHG emissions and resource use.

6. Depletion of planetary resources

Logistics models are dependent on natural resources (fuels, metals, etc.). Even so-called clean vehicles require large quantities of materials: lithium, copper, cobalt, etc. These complex technical systems require various components for production. The extraction of these materials is becoming increasingly problematic.

The emergence of resilient logistics models: 7 levers to pull for online stores

Responding to the ecological challenges of the last mile is a necessity for e-commerce sites. The aim is to adapt to new traffic restrictions in city centers, improve delivery performance and boost consumer confidence. Consumers now prefer companies that are committed to the environment. Here are 7 urban logistics solutions for e-boutiques.

1. Adopt cyclologistics

Cyclologistics involves transporting goods by bicycle. Agile, fast and emitting very little CO2, cargo bike delivery is a mode of transport designed for the city. It has an attractive load capacity (between 50 and 300 kgf) and easily avoids traffic jams by taking alternative routes (narrow streets, contra-flow traffic, pedestrian zones, etc.).

2. Promote proximity between warehouse and end consumer

Reducing the distance between the storage area and the customer, especially for small order quantities, cuts fuel consumption, reduces transport costs and helps protect the environment. For example, some logistics providers set up warehouses at the entrance to EPZs. Trucks drop off goods on the outskirts of the city. Orders are broken down into various parcels, then delivered by bike or on foot.

3. Set up alternative collection points

In the same vein, intelligent lockers can be installed. In this way, the carrier avoids missed deliveries in the event of a customer's absence. It also enables logistics operations to be pooled, reducing the number of vehicles in the city.

4. Plan delivery routes

A TMS (Transport Management System) is a software program for monitoring delivery operations. It enables the fastest routes to be planned and identified, according to traffic conditions (traffic jams, closed streets, etc.) and vehicle type. Informed of route conditions and following an optimized itinerary, the delivery driver avoids detours, increases productivity and reduces GHG emissions.

5. Collect and analyze last-mile data

The last mile is at the heart of customer satisfaction. To optimize deliveries, you need to implement and monitor the right performance indicators. This will also reduce their environmental impact. The most important data to evaluate are as follows:

  • Proportion of deliveries arriving on time.
  • Fuel or electricity consumption.
  • The number of kilometers covered compared with the distances initially planned.
  • Logistics costs according to parcel type, mileage and mode of transport.
  • Consumer complaints.
  • The number of parcels delivered in poor condition.

Consumers also appreciate delivery tracking. Knowing where their parcel is and when it will arrive, they can plan accordingly, avoiding missed deliveries and wasted journeys.

6. Reduce packaging voids

To minimize vacuum transport, we need to think intelligently about product packaging:

  • Opt for resistant materials adapted to the items to be sent.
  • Limit the use of logistical cushioning.
  • Avoid over-packaging.
  • Match carton dimensions to those of the product.
  • Prefer custom packaging.

In this way, you reduce transport costs by increasing the quantity transported in a trip. This can only reduce your carbon footprint at the same time!

7. Pool outbound and inbound logistics flows

Logistics pooling consists in transporting several heterogeneous products from different customers to avoid empty transport. Logistics platforms and service providers help reduce logistics costs and their impact on the planet. It is also important to organize product returns at the same time as delivery rounds. The aim is to optimize journeys as far as possible.

The importance of the last mile for e-commerce: what you need to know

Last-mile logistics represent a major challenge for companies, particularly with the rise of e-commerce. Urban mobility constraints, inadequate logistics models and high costs pose significant obstacles. What's more, the ecological impact of this delivery stage is considerable.

Faced with these challenges, the emergence of resilient logistics models is imperative. Online stores can adopt several levers to meet the ecological challenges of the last mile:

  • Guarantee package traceability.
  • Limit vacuum transport.
  • Opt for environmentally-friendly delivery methods.
  • Move storage areas closer to consumers.

By adopting these approaches, companies can not only improve their logistics performance, but also contribute to preserving the environment.

D&figroupe supports you at every stage of your e-commerce project. We put at your disposal a wide network of carriers and logistics service providers to adapt perfectly to your needs, at the lowest possible cost. Contact our customer service department to arrange a meeting with your dedicated contact.

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