Last mile delivery study

OPM Conseil conducted a survey with Supply Chain specialists (logistics decision-makers and operators and logistics service providers) about the new trends in the end-customer delivery. The study has been conducted across different markets with different product formats (textile, electronics, household appliances, food, etc.)

This study highlights four key points:

1. Increase in delivery costs to integrate ecological constraints

Driven by the importance of ecological issues, 93% of our respondents believe that delivery costs will increase in the next five years. As a result, delivery by electric vehicles appears to grow the most, followed by bicycles (electric or not). At this stage, delivery by drone is hardly mentioned by the professionals.

Types of vehicule

Electric

Bicycle

Standard

Drone

52 %

30 %

17 %

1 %

2. Development of collection points (stores or dedicated points except for large products)

Types of delivery

Home delivery

Stores or collection points

39 %

61 %

To offset the increase in delivery costs, pick-up points (including "pick-up in store") will experience strong growth in the coming years. For large products, home delivery is still the preferred choice (e.g. for household appliances)

3. Leadtimes offered to customers: the end of the race to hyper-speed

The study shows that delivery times will no longer decrease significantly; the bottom level has been reached with leadtimes already very tight. Across all markets, almost 50% of professionals even think that delivery times will increase.

This decrease can be explained by delivery costs that are expected to rise and the desire for a more sustainable Supply Chain.

However, few specific products such as smartphones or computers are still subject to the need for very fast delivery.

Evolution of the delivery time

Increase

47 %

Decrease

14 %

Stable

39 %

4. Emergence of new types of players for the last mile delivery

The last-mile delivery handled by private individuals or independent will increase to the detriment of the traditional carriers. These new types of players are expected to grow for all types of products and services in the coming years.

Profile to carry out the last-mile delivery

Self employed

41 %

Carrier

40 %

Individual

19 %

In short words

The decision-makers interviewed in this survey agree on trends which appear to be strong in the coming years :

1. Towards an increase in delivery costs to integrate ecological constraints

2. Development of collection points (shop or other) except for large items

3. Timeframes offered to customers: the end of the race to hyper speed

4. Appearance of a new type of player for the last mile

At OPM Conseil, we work with Retailers and wholesalers companies on these issues. We are called upon to redefine logistics routes in response of the commercial strategy of the brands, notably by integrating CSR issues.