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E-commerce has grown explosively in recent years. When the
coronavirus hit in 2020, online sales have reached an all-time
high across the globe. According to the U.S. Census Bureau,
retail e-commerce sales for the second quarter of 2020 increased
by 44.5 percent from the same quarter in 2019.
This pace of growth has a significant impact on the trucking
industry. The logistics industry has to balance several demands
from e-commerce consumers, from fast delivery times to lower
The “last mile” of delivery is the point where the package arrives at
the customer’s door. The final leg of shipment is often the most time-
consuming and expensive part because it involves multiple stops with
small drop sizes.
In rural areas, delivery points on one route can be several miles apart,
with only one or two packages being dropped. This inefficiency results
in higher costs for the parcel carrier and longer waiting times for the
In cities, on the other hand, traffic congestion causes shipment
delays, although the delivery stops are nearer. This problem leads to
lower customer satisfaction and higher operating expenses.
Some parcel carriers address the last-mile delivery problem through
crowdsourcing. By crowdsourcing their services, logistics partners
k d li
More and more consumers expect two-day or even same-day
deliveries from companies. Some expect this service for free, while
others are willing to pay a premium.
To meet this consumer demand, many companies are also developing
more fulfilment warehouses. The fulfilment centers are located in
strategic areas where the carrier can quickly reach customers.
However, having multiple warehouses impacts the company’s
inventory. They have to carry more inventory to achieve the same
service levels and ensure that products are always in stock.
These fulfilment warehouses are managed via centralized fleet