How Can Technology Improve Last-Mile Delivery?

Technology improves Last-Mile Delivery

Over the past decade, the last-mile delivery industry has seen some significant developments owing to technological advancements. Technologies like Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT) have made it possible to automate a large number of the industry’s processes. 

As a result of modern-day technology, last-mile delivery companies have access to potential solutions and tech applications for enhancing their work processes. When successfully implemented, these solutions generate results like an increase in productivity and more economic efficiency in terms of overall expenses.

1. Shortens Delivery Time

Studies have shown that many companies lose business primarily due to more extended delivery periods. This problem is solved using today’s advanced satellite navigation systems. Using GPS, courier companies can map out the quickest and least congested routes from the facility to the customer. Utilizing GPS services shortens the overall delivery period and adds to customer satisfaction. The modern GPS system can also be helpful in locating the closest warehouse to the customer’s location, which can speed up the delivery process exponentially.

2. Cost Optimization

The digitization of delivery services has enhanced both affordability and quality of service. Customers can locate and book a courier service easily as modern technology has made it a much more streamlined process. Technology platforms let companies manage deliveries in-house clearly and compellingly without spending much money or hiring many people to do the job. 

Optimized delivery routes save money and time because they cut down on fuel costs, in turn reducing the cost of delivery, which is suitable for both the customer and the company. Using technologies like blockchain can stop fraud, eliminate mistakes, make data more secure, improve productivity, and lower logistics costs.

3. Real-Time Tracking

It is crucial for a courier company to be aware of the precise location of the orders they ship. But, thanks to real-time tracking systems, courier companies can know their delivery partner’s locations and keep track of orders that are continually sent out. Many last-mile delivery companies use modern transportation-management systems to keep tabs on the movement of their orders across international borders.

Real-time tracking also helps customers get regular updates about the movement of their orders and even see the real-time location of the delivery partner. AI has also enabled customers to precisely predict their order’s ETA(estimated arrival time). With the help of advanced technology, courier companies can also send timely notifications about the movement of the order to the customer, which enhances visibility for the customer.

In the end, logistics and delivery companies use location-based solutions to keep track of and manage people in different places. Real-time tracking expedites, facilitates, and streamlines delivery.

4. Better Customer Service

Top-tier products, fast delivery, and after-sales services make up a good customer service experience. With the help of technology, all these parameters can be met easily: payment processing, better communication, and faster delivery times. Even in customer support, AI chatbots can answer any queries or issues relating to the courier company and service, which cuts the wait time for them to get support personnel and also reduces the workload for the employees. 

Due to technology, customers are able to have end-to-end visibility of the status of their orders. Technology has enabled courier companies to maintain transparency with their consumers, which positively impacts the customer’s trust.

5. Easy Payment Methods

Earlier, consumers had to go to the courier facility to settle their bills, but now, due to advanced technology, this problem is addressed through a myriad of online payment methods. Internet banking, e-wallets, and instant payments have simplified and streamlined the process. Contactless delivery is also one of the perks of easy payment methods. 

Modern-day technology has also made it possible for last-mile delivery companies to implement pay-on-delivery options for consumers who are skeptical about prepayment. Cash on delivery allows you to pay using cash, cards, and other online payment methods when the package is delivered.

6. Authenticity Verification

Authenticity is a primary concern when it comes to shopping online. But modern-day technology has proved to vouch for the courier industry. There are QR codes and other discreet codes that you can scan and get authentic vendor information, which can be used to substantiate the genuineness of the product. The AI engines swiftly verify the minuscule differences in artwork, holograms, and online printed material that the human eye may miss.

Many courier companies are using AI-driven systems that employ image scanning to enable the detection of infringers. How this works is that the customer must simply click a picture of the product using an app provided by the courier company or email the image to the specified email address. The company would confirm the authenticity of the product within a few minutes. This technology has proven to be successful in terms of real-time interactive solutions.


Last-mile delivery is an integral part of the supply chain but is also the least effective. Even the industry’s biggest names struggle with the complexity of the last mile. It is the final step in the customer’s journey, yet it accounts for up to 28% of the total delivery cost.

But these hurdles are being easily tackled because of technological evolution. With the progress of the fourth industrial revolution, one can say that the last-mile delivery industry will thrive in the near future.

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