How does crowdsourcing deliveries impact last-mile efficiency?

crowdsourcing delivery

As last-mile delivery continues to change and evolve, more companies choose to implement a system that helps them work with better processes to become more efficient and scale their business.

Over the years, we’ve learned that being at the helm of innovation is not just meant to solve companies’ operational challenges, but also to enable them to scale at a faster pace.

This is why we want to enable companies to work with a platform that empowers them to innovate, be more productive and efficient in the operations tasks – and also become more profitable in the long run.

In today’s fast-paced environment, we have identified that for a company to thrive, it’s not only needed to tap into new technology to make processes more efficient, but one of the most important aspects is having the flexibility to think out of the box and choose the right strategies for your organization.

At CarPal, ever since we started operating in Singapore, we focused on creating a hub of learning and encouraged our team to use tech to automate and ultimately work smarter.

Through our very own in-house tech, we managed to learn the benefits of working with automated processes and crowdsourcing to perform daily deliveries.

We realized that many of the hurdles about choosing the right strategy for companies’ delivery operations cannot be solved only with the help of technology, but with a suite of services that companies can plug-n-play based on their requirements and needs.

Is crowdsourcing the future of last-mile efficiency?

One such aspect is sharing assets or crowdsourcing. It is now a fact that an increasing number of companies are using their own or shared vehicles for last-mile delivery.

To learn how to operate better, companies need to find out how to fully-utilize resources and scale businesses, hence look for alternatives and compete with industry giants.

In this industry and beyond, more established organizations are also looking at this strategy as a way to complement their fleets and delivery partners.

For instance, last year Wal-Mart started matching online order delivery addresses with its employees’ driving routes so they can deliver packages ordered online as they drive home.

But even with big players starting to use this strategy, the crowdsourced last-mile delivery market seems to be in early stages of development.

The important thing is that more companies need to consider crowdsourcing as part of their internal strategy to become more effective and scale their business.

Increasing delivery costs, vehicle capacity shortage, lack of qualified drivers as well as growing consumer demand for better deliveries are pushing businesses to look for the additional resources they need in order to expand and modernize their delivery infrastructure without spending a lot of money.

How can a last-mile delivery platform enable change?

Last-mile delivery platforms will have to enable such companies to enter the on-demand space by providing the right vision, expertise and tools to help them execute it.

Apart from smarter tech being at the foundation of this ecosystem, some of the new innovations that will make an impact in the logistics industry will be:

  • Renting crowdsourced urban warehouse spaces for easy access to products and fast deliveries 
  • Democratizing fleets to achieve a higher fulfilment rate

crowdsourcing deliveries

Democratizing fleets

Democratizing fleets will help companies accurately utilize resources and maintain a high fulfilment rate

One such idea is tapping on a hybrid fleet, which means you need to take into consideration planning your internal operations and delivery teams to determine the distribution of the resources to minimize cost and maximize fulfilment rate for you daily deliveries.

The purpose behind this scenario is that even complex delivery operations can be streamlined. To do that, you can start considering the routes and resources that you utilize to manage your deliveries.

If you overestimate your resources, you might be left with excess resources that you would then have to worry about, which would add to the overall cost of your operations.

To get you started, a smart algorithm would help you crunch all the data and factors in things like capacity, weight, volume, and priority status. This would result in an automated and sustainable resource allocation ran at the most optimal rate of resource utilization for your company.

Tapping into fleets and allowing other companies to use your very own will allow you to bring the delivery cost down, gain control over your own delivery fleet, and have the ability to tap into third-party drivers without having to purchase any vehicles or hire additional staff.

To implement this idea, companies will need to try new customised models based on their goal. That means using their internal fleets, external fleets, partner companies, and even crowdsourced resources that can be aligned to reach customers in the best and most efficient way.

Shared warehousing

The gig economy prompts businesses to use urban warehouse spaces for easy access to products and fast deliveries

crowdsourcing deliveries

There is a trend for big players to build urban warehouses in order to fulfil same-day deliveries. But the truth is that few companies have the resources to create their own warehousing network as the process is extremely costly.

This is where companies can tap into crowdsourced warehouses and “rent” space from other existing networks that have strategic locations.

The value proposition for shared warehousing is that you don’t have to run out of space during the peak volume periods, but also don’t need to pay for excess space during lax periods.

With so much demand for same-day delivery, this would facilitate companies to easily use urban warehouse space and have rapid access to products for fast deliveries.

Conclusion

It’s becoming more clear that crowdsourcing is having an impact on the supply chain industry. With better technology than ever before, it’s important for logistics players to work together to adapt, become more flexible and find the best solution for their businesses.

crowdsourcing deliveries

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