Remember when you ordered those limited-edition sneakers and tracked the package obsessively for days, only to find them unceremoniously dumped behind your trash can? Or how about when your customer’s anniversary gift arrived a day late, leaving you with an angry email and a one-star review?
Yep, we’ve all been there. Welcome to the wild world of last mile delivery, where customer loyalty hangs by a thread, and your brand’s reputation teeters on edge with every package.
But here’s the good news: Last mile delivery technology continues to get more advanced, customer-centric and beneficial for you. The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions is spilling the tea on the most groundbreaking tech poised to disrupt the industry now and in the future — and trust us, you’ll want to know what these research pros are saying. So, grab a coffee (or your beverage of choice) and dig into their insights.
The State of the Last Mile Delivery Technology Market
The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions paints a picture of diversity and resilience. From global players to local specialists, the field remains highly fragmented. Yet despite economic headwinds, most vendors have grown their own customer base, and revenues and are continuing to expand.
The Rise of E-Commerce & New Business Models
Imagine a world where your customers’ favorite pair of shoes, a life-saving prescription and tonight’s dinner ingredients all arrive within hours of tapping “Order.” It’s not so far-fetched; it’s the reality of today’s e-commerce revolution. The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions mentions how as more and more consumers turn to online shopping for everything from fashion to pharmaceuticals, many companies are scrambling to keep up with their insatiable appetite for convenience.
Take the booming prescription delivery market, for instance. What was once a $132.9 million industry in 2021 could skyrocket to a whopping $630.17 million by 2031 at a 16.7% CAGR. Driving this explosive growth isn’t just about getting allergy meds faster; it’s forcing you to completely reimagine how you handle deliveries, especially when it comes to sensitive items like medications.
The e-commerce boom is also transforming fulfillment optimization. The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions mentions how the growth of mini warehouses can help dispatch online orders at lightning speed and cater to same-day delivery, a service that over 75% of young shoppers now see as a must-have. It’s a world where sophisticated computer systems plot the most efficient routes for delivery drivers, real-time tracking lets you watch your package’s journey from warehouse to doorstep, and businesses are constantly innovating to stay ahead in this high-stakes game of “Who can deliver it fastest?”
Customer-Focused Delivery Options
As a business leader, you’re at the forefront of a last mile delivery revolution. Your customers’ expectations are evolving rapidly, and The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions adds context with a key statistic: 69% of your peers are putting customer satisfaction at the heart of their strategic decisions for the next three years.
Consider this: Does your delivery service give customers the control they crave? Can they pick delivery times that suit their busy lives? Or track orders as easily as they follow their rideshares? Even choose green delivery options? If you’re shaking your head, you’re leaving money on the table — especially with your younger customers under 30 who see speedy, flexible delivery as a baseline expectation.
That’s why embracing customer-centric last mile delivery technologies — from strategically placed micro-fulfillment centers to intuitive delivery apps — can position your business at the cutting edge of building relationships that transform casual shoppers into brand advocates.
Critical Capabilities in Last Mile Delivery Solutions
The world of shipping and delivery has become a high-stakes game of speed, efficiency and, increasingly, environmental responsibility. There’s hope on the horizon, and it comes in the form of two emerging strategies that The 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions was sure to discuss: flexible fleet management and advanced route optimization.
Flexible Fleet Management
If you’re shipping goods, you know the last mile can be a real pain in the neck. Traffic is a nightmare, customers are impatient, and your costs keep climbing. Sound familiar? Flexible fleet management helps by giving you the right tools to roll with the punches. One day, you might need your own trucks; the next, you’re better off with a local courier on a bike. The beauty is you can switch it up without breaking a sweat. Especially in busy cities, you need to be quick to keep deliveries moving.
Beyond picking the right vehicle, good, flexible fleet management gives you the lowdown on everything that matters. Traffic jams? It’ll route around them. Tight delivery windows? It’s got you covered. Trying to cut down on emissions? It can help with that, too. The point is, you’re not flying blind anymore. You’ve got real-time info at your fingertips, so you can make smart calls on the spot in a world where everyone and their dog is promising lightning-fast, eco-friendly deliveries.
Advanced Route Optimization
Let’s face it, the last mile hustle is getting crazier by the day. Your customers are tapping their watches, expecting their stuff to materialize instantly, and you’re juggling more balls than a circus act. But with advanced route optimization crunching multiple variables at once — from traffic patterns to CO2 emissions to delivery windows, all in real-time — you can shave off fuel costs and hit those delivery windows like clockwork, whether you’re herding a fleet of five of your own vans, wrangling 50 outsourced drivers or some wild mix of both.
It’s the kind of capability that’s flexible enough to roll with the punches, and can even help turn your sustainability talk into action. Sustainability is a growing concern for businesses and consumers. With eco-friendly routing, you can both slash your carbon footprint and prove to your eco-friendly consumers that you’re doing something for the planet.
The Growing Importance of Customer Experience in Last Mile Delivery
Suppose your company just launched a new product line and orders are flooding in. Everything seems perfect until you start noticing a trend in your customer feedback — complaints about late deliveries, poor communication and packages left in less-than-ideal locations. Suddenly, delivery mishaps overshadow your hard-earned sales. Such scenarios are all too common and serve as a wake-up call for many businesses today; customer experience in final mile delivery has become increasingly important, and marks the difference between a one-time sale and a long-term customer.
Personalized Delivery Options
When you offer your customers personalized delivery options, you give them the power to shape their own delivery experience. By offering features like selectable delivery time slots, diverse pickup methods (home, locker, or curbside) and eco-friendly route choices, you’re not just meeting rising expectations — you’re exceeding them, and showing your customers that their preferences and values matter.
But personalization doesn’t stop at the point of purchase. When you offer real-time tracking and updates through your customers’ preferred communication channels — a quick text, an email or a gentle push notification — you’re keeping customers in the loop and building trust. Add the flexibility to reschedule or reroute deliveries on the fly, and you have a recipe for seamless integration into your customers’ lifestyles.
Real-Time Visibility & Communication
Keeping your customers satisfied and your operations running is the holy grail; real-time visibility and communication are the keys to making it happen. When your customers can track their packages’ exact locations and receive instant, proactive updates, it creates a cascade of benefits. They feel more in control and happier, meaning fewer WISMO calls for you (“Where is my order?”). Yet it continues beyond there — this transparency allows you to quickly identify and resolve issues, optimize routes and enhance your delivery team’s performance.
Taking your delivery game to the next level is all about real-time communication. Imagine automated alerts keeping your customers informed at every step, from when their package is out for delivery to arriving at their doorstep. Or interactive options that allow customers to reschedule deliveries or provide specific instructions right through your app or portal. This direct line of contact doesn’t just make deliveries more predictable and reliable; it builds trust, strengthens your relationships with customers and creates a better experience for everyone involved.
The Path Forward in Last Mile Delivery Technologies
As businesses revisit their strategies in the face of economic challenges, the path forward in the last mile market is one ripe for innovation and investment.
- Emerging Technologies: Green delivery routing, drone deliveries and AI-driven orchestration only scratch the surface of the technologies disrupting the last mile.
- Alternative Delivery Models: The rising demand for alternative delivery services such as green delivery and smart-locker pickups is gaining traction, driven by consumer preferences for flexibility and environmental consciousness.
- Optimizing Return Processes: Some vendors incorporate sophisticated return capabilities with alternative return options like return-to-store or evaluating return eligibility based on customer track records.
- Strategic Recommendations: For companies looking to stay ahead, integrating last mile solutions with existing TMS and WMS systems, focusing on customer-centric features and exploring hybrid fleet models are the new keys to success.
Bridging the Gap: Your Business, Your Customers & the Last Mile
Every retailer and shipper knows the drill: You’ve sourced the product, processed the order, and now it’s out for delivery. But that last stretch? It’s where your reputation is on the line. Whether you’re shipping artisanal soaps or cutting-edge gadgets, how that package arrives can make or break your customer’s experience. And that’s the difference that investing in the right last mile delivery technology can make.
Looking to turn your delivery game from a headache into a customer win? Think of the 2024 Gartner® Market Guide for Last Mile Delivery Technology Solutions as your cheat sheet for cracking the code of shipping solutions. And here’s some exciting news: OneRail has been named a representative vendor in this guide for the second consecutive time!
Download the full report from OneRail to explore detailed vendor profiles, market trends, and actionable insights that will help you stay competitive in the digital age. Don’t let clunky deliveries undo all your hard work.
Once you finish reading it, why not see how OneRail can fit into your operation? Schedule a demo today, follow some of the insights and strategies Gartner zeroes in on, and figure out how to make every delivery count.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner Reports: Gartner, Market Guide for Last-Mile Delivery Technology Solutions, by Oscar Sanchez Duran, Carly West, Nathan Lease, June 18, 2024.
Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
