WALMART'S SPARK DELIVERY SERVICE? OR AMAZON LOGISTICS? | Sowoll

Release time: Monday, September 10, 2018
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Supply chain logistics have dominated several studies this  year due to the rise of global commerce, however, it has mainly focused on global and regional networks.With the growing congestion of cities and the rise in e-commerce, last-mile logistics have experienced several challenges that have resulted in focusing on point-of-sale delivery.

Long before e-commerce took over, last-mile logistics were a challenge due to fast-growing cities, MIT News reports. The complexity grew as demand from retailers, e-retailers, unions, government officials, citizen activists clashed since shipments are usually smaller in a city setting. Consumer e-commerce also increases the chance of delivery failure. Companies are now offering specific time windows for when a package needs to be delivered, and if the customer isn't home it can add to the cost.

Mix in growing cities with the e-commerce boom, the complexity for last-mile logistics has only increased. More trucks are flooding the streets, making frequents stops that slow down traffic. Having to look for parking, or even double parking, are factors to driver congestion.



The demand for warehouse space has also increased. Logistics centers have moved to more rural areas instead of in the city due to low real estate costs. With more shipments going toward the city, the needs to be a multi-tier distribution system that utilizes smaller centers and fulfillment operations within the city.

Retailers and delivery firms are starting to turn to third-party services to help with delivery, MIT News reports. By temporarily expanding their delivery capacity, companies can optimize their own fleets and use third-party services to help with peak periods.

Delivery companies collect large amounts of data, and with the complexities of last-mile logistics, big data isn't a natural fit. Instead, companies use more traditional services.

In order to integrate planning and any additional insights, companies need to enhance location tracking. GPS tracking accuracy is constantly improving, which is useful for extracting driver knowledge. Connecting movement data with transaction can determine where the vehicle should park and which customers are served at each stop.
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