In recent years, the world has witnessed a significant rise in international e-commerce, with retail sales projected to reach US$8.1 trillion dollars by 2026, as evidenced by Statista. This surge in cross-border e-commerce has had a profound impact on consumer expectations, particularly in the logistics industry.
As online shopping becomes more prevalent internationally, the landscape of both business-to-business (B2B) and business-to-consumer (B2C) delivery services has rapidly changed. Consumers now have heightened expectations for seamless and efficient last-mile logistics and delivery.
What is last-mile logistics & delivery
But what exactly is last-mile logistics & last-mile delivery? In logistics, the meaning ‘last mile’ refers to the final stage of the delivery process, where goods are transported from a distribution or fulfilment centre to the end destination, which is usually the customer's doorstep.
Meanwhile, last-mile logistics is the delivery of packages by courier services, including sorting, route planning, and delivery by a driver or a courier.
Let’s explore the five key trends in last-mile delivery and logistics that Thai businesses need to consider to meet evolving customer expectations and improve their experience.
1. Demand for speed & convenience
One of the most prominent trends in last-mile delivery and logistics is the increasing expectation for fast and convenient delivery options. Today's consumers are accustomed to instant gratification and expect their orders to arrive quickly. Same-day and next-day delivery services have become the norm, with businesses that can provide such options gaining a competitive edge.
To optimise delivery speed and convenience, Thai businesses should invest in efficient logistics and distribution systems. This may involve partnering with reliable courier services or establishing their own fleet of delivery vehicles. Additionally, implementing advanced order management systems and route optimisation technology can streamline complex international operations and minimise delivery times.
2. Personalised delivery experiences
Other than greater demand for same-day and next-day delivery services, consumers now seek personalised delivery experiences that cater to their specific needs and preferences. Flexibility in delivery windows, the ability to choose delivery preferences, and options for rerouting or rescheduling deliveries are increasingly important.
Thai businesses should prioritise providing these customisable options to enhance customer satisfaction. For example, implementing a user-friendly online platform that allows customers to select their preferred delivery times and locations can significantly improve the overall delivery experience. By giving customers control over their deliveries, businesses can increase customer loyalty and satisfaction.
3. Transparent tracking & communication
In today's fast-paced world, customers also want to stay informed about the progress of their deliveries in real time. Transparent cross-border tracking and proactive international communication play a vital role in meeting these expectations.
Technology solutions such as real-time tracking platforms, SMS notifications, and mobile apps can enhance transparency and keep customers informed about the status of their international deliveries. For example, businesses can make use of DHL Express’ Track and Trace with the shipping management tool, MyDHL+. Simply enter the tracking number to find out the estimated delivery times and any potential delays. With such a tool, businesses help manage customer expectations and ultimately, build trust.
4. Sustainability and green delivery options
As environmental concerns continue to rise, sustainability has become a crucial factor in last-mile delivery as well. Consumers are increasingly conscious of the environmental impact of delivery services and expect businesses to adopt greener practices.
Thai businesses should explore eco-friendly delivery options to meet these expectations. For example, they can invest in electric vehicles for deliveries, use bicycle couriers for shorter distances, or partner with eco-friendly logistics providers like DHL Express to promote sustainable last-mile delivery.
DHL Express has made a firm commitment to achieving complete emission elimination by 2050, implementing various initiatives such as:
- Electric vehicles: Aims to have a minimum of 60% electric vehicles for last-mile deliveries by 2030.
- Sustainable Marine Fuel (SAF): Decrease the reliance on heavy fuel oil by switching to sustainable aviation fuel (SAF).
- GoGreen Plus: To reduce carbon emissions from air transportation by transitioning to SAF.
These initiatives not only contribute to environmental conservation but also resonate with eco-conscious customers, helping businesses build a positive brand image internationally.
5. Collaborative delivery networks
The last trend in last-mile delivery and logistics is the rise of collaborative delivery networks and crowd-shipping models in both B2B and B2C delivery services. These models leverage underutilised resources, such as spare capacity in private vehicles or individuals willing to send packages during their daily commute. By using these alternative options, Thai companies can greatly expand their capabilities and reach remote areas more efficiently.
However, it's important to consider the challenges associated with these models, such as ensuring the reliability and security of deliveries. Before engaging with collaborative delivery networks or crowd-shipping platforms, thoroughly vet potential partners to ensure their reliability and adherence to security standards. Verify their track record, reputation, and operational capabilities to minimise risks.
Once they pass the checks, companies can then establish clear Service Level Agreements (SLAs) that outline expectations, responsibilities, and performance metrics. These agreements should include provisions for reliability, security, and adherence to delivery timelines to ensure a consistent and satisfactory customer experience.
