Automation is revolutionising logistics and last-mile delivery, offering myriad advantages in efficiency, productivity, and precision. The adoption of automation will become widespread, especially as the last-mile delivery segment is expected to grow from around $108.1 billion in 2020 to $200 billion in 20271.
Given the expected increase in demand from e-commerce users and retailers, last-mile companies must implement additional automation technology to keep up with demand and keep customers happy. Automation streamlines processes and enables last-mile companies to deliver parcels promptly.
Robotic Process Automation (RPA) is a widely recognized form of automation in the logistics and last-mile delivery industries. It employs software-driven robots to perform repetitive tasks with precision and efficiency. These robots can handle various operations, from transporting packages to designated locations to assisting with packaging, labelling, and other essential processes1.
For example, global e-commerce giant Amazon uses transport pods like Hercules and Titan. Titan, in particular, can lift up to 1,133 kg, streamlining the movement of heavier items to warehouse employees. This technology enhances productivity and reduces manual effort in warehouse operations2.
Several last-mile service providers in South Africa have embraced automation in their daily operations. Fastway Couriers, for instance, operates an automated warehouse in Johannesburg, one of the country’s major logistical hubs. The warehouse efficiently sorts parcels destined for cities like Durban and Cape Town, organizing them by dimensions, weight, and size.
Parcels are automatically dispatched based on their destination and characteristics, streamlining operations while minimizing the risk of human error. Although some have raised concerns about automation potentially reducing job opportunities, introducing this technology has allowed warehouse staff to focus on other essential tasks, such as resolving issues with incorrect addresses or updating parcel information. This shift improves operational efficiency and simplifies the workload for employees.
“Our automated sorting system has revolutionized our operations, enabling us to process over 4,000 parcels an hour and significantly boost productivity by 80-85%,” commented Damian Velayadum, Group Financial Director at Fastway Couriers. “This has allowed us to handle higher volumes with greater efficiency, ultimately improving the overall experience for those relying on our services.”
Automation has also made its mark in other aspects of last-mile delivery, with drones gaining popularity among European delivery companies. Drones offer a more efficient and automated solution, capable of reaching hard-to-access locations while bypassing traffic and other road delays. Additionally, they are considerably more cost-effective, with operational expenses estimated to be up to 70% lower than traditional vans or trucks3.
While drones seem the obvious solution to many last-mile challenges, several hurdles must be overcome. The technology offers a great way to deliver packages to remote locations; however, the South African Civil Aviation Authority (SACAA) currently requires pilots to register and operate commercial drones. Furthermore, the SACAA prohibits flying drones that weigh more than 7kg, limiting their scope for logistical use in South Africa—for now, at least.
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