From ancient modes of transport, the advent of trains, ships and trucks to the recent rise of e-commerce, the logistics industry has undergone incredible advancements. In recent years, GPS tracking, route optimisation algorithms, and real-time delivery updates have fueled the evolution of last-mile delivery.
Today, we find ourselves in an era where Artificial Intelligence (AI) is driving transformative change in last-mile delivery across the globe, delivering not just parcels but also increased efficiency, security, and sustainability:
- Efficiency in that AI-powered delivery management systems utilise machine learning algorithms to optimise delivery routes, considering traffic conditions, delivery time windows, and customer preferences
- Security in that AI-driven monitoring systems ensure the safety and security of packages, reducing the risk of loss or damage
- Sustainability in that AI applications play a crucial role in optimising delivery routes to minimise the carbon footprint.
Looking further ahead, we will likely see ‘vision systems’, comprising cameras and algorithms, able to identify colours, goods, damage, and objects, improving the production process significantly. For example, in international markets, Amazon utilises a ‘computer-vision’ driven AI system to offload merchandise from a trailer within 30 minutes, a task that would otherwise take several hours.
What about South Africa?
A local perspective
Locally, for example, Fastway Couriers is constantly looking for new technology innovations to improve the customer experience. Through implementation of the OnRoute app, Fastway provides real-time information and makes use of automation to get orders delivered as quickly as possible. ‘This is only the beginning,’ says Damian Velayadum, Group Financial Director at Fastway Couriers. ‘The future of last-mile delivery is exciting and it’s no secret that staying abreast of advancements in AI technologies will set any company up for success,’ he notes.
Yes, there are challenges and concerns surrounding AI in South Africa, such as job displacement due to automation, reduced human interaction impacting customer service perceptions and high initial costs associated with implementing AI technologies. Addressing these challenges will be crucial to realising the full potential of AI in last-mile delivery while mitigating any adverse impacts on the workforce and customer experience.
