Forecasts and priorities for the last mile

The pandemic forced people to consider delivery services and now consumers love the convenience. This preference for delivery over in-person shopping will continue even after the pandemic.

FREMONT, CA: To optimize a strained supply chain, new solutions are in demand to continue the expectation for last-mile delivery. Therefore experts are in anticipation as to what is in store for the last-mile delivery industry in 2022.As the middle mile is coming up,  FedEx, UPS, and USPS are likely to expect automation and omnichannel solutions to fulfill the supply and demand of the consumers. Micro-fulfilment (middle mile) had initially emerged as a leading solution by providing drivers with umpteen opportunities. Middle-mile strategies had offered higher earning opportunities for the drivers with the aid of automation and technology. Expedited shipping is more of an industry-standard rather than a luxury.

Delivery density has increased due to the pandemic. Several industries have adapted to demand, leaning into delivery. The lives of drivers have been made easier as increased delivery demands have brought in smart solutions like routed delivery and micro-fulfilment. For their last-mile delivery needs, industries are starting to use omnichannel methods. To deal with the overflow that comes with third-party collaboration, businesses must devise multi-pronged methods.

Drivers who work as independent contractors have the option of partnering with many companies for deliveries. This increases earning possibilities, improves driver engagement and overall job happiness. The more stores and delivery companies pool their drivers, the more the independent contractor ecosystem benefits. Businesses can become more efficient and more competitive with their third-party providers, by sharing drivers.

Labour shortages plagued the industry this year, and delivery drivers were no exception. Businesses must consider the infrastructure of a delivery programme as well as who will be in charge of the operations. Businesses must evaluate the entire process—from onboarding to accounting—as well as insurance and risk management requirements when employing 1099 workers. Improving the 1099 HR experience is a simple way to increase driver retention. Providing drivers with more options and daily rather than weekly pay improves the 1099 HR experience, resulting in higher driver satisfaction and retention.

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