By: Shraddha Gopalakrishnan, Irma Dervisevic, Jie Hu, RIG Intern Researchers

 

In this omnichannel world, it is critical to provide customers with what they want, when they want it, and deliver it to where they want it. These are necessary expectations to keep an e-commerce business running while retaining high customer satisfaction in the process. At the same time, logistics puts an enormous strain on the company’s supply chains to get the job done. By exploring Last-Mile delivery and its’ current inefficiencies in supply chains, we can investigate advancing the current process.

RIG’s products can help leading companies, now and in the future, leverage innovative and trust technology to improve delivery methods and differentiate business practices to enable enhanced, predictive, and cost-effective deliveries to their end-users. RIG will introduce new technologies, such as Dynamic Trust™ and NIMBUS™ Private Integration Cloud (PIC), to minimize the security risks and burdens associated with Last-Mile deliveries in supply chain operations. This blog will examine RIG’s role in improving the current state of the art for Last-Mile delivery.

During the Pandemic and now as we enter the Post-pandemic economy, the rapidly growing e-commerce ecosystem is becoming an expensive headache for many logistics companies.  Last-Mile delivery comes into the value proposition as it involves many different products and services to many receivers (customers), each with high expectations on service levels and precise time windows. According to Business Insider, two problems have made Last-Mile delivery unbridgeable. The first issue is delivery efficiency, where there are multiple stops but low quantities of delivery size. The next issue is cost, where customers not only expect fast delivery but also free delivery. Last-Mile accounts for 53% of total shipping costs, including route optimization, free shipping, and software development (real-time tracker).

Additionally, the market is highly competitive with many challenges in this digital era. Delivery optimization and automation are in high demand.  Just like how the anchor runner in a relay race is responsible for making up ground on the race-leader, Last-Mile delivery is the final logistics step in the process.

A diagrammatic representation-

Figure 1 Five Crucial Steps in Last-Mile Delivery

A Innovative technology in delivery optimization and automation can alleviate pressures currently disrupting the logistics industry and provide improved solutions for a more efficient business.

A streamlined system will be a game-changer in shipping products directly from delivery hubs to a customer’s door. Advancements will increase flexibility concerning delivery time optimization, vehicle object instruction, sophisticated redirection, ETA notifications, and customer communication. Innovative technology in delivery optimization and automation can alleviate pressures currently disrupting the logistics industry and provide improved solutions for a more efficient business.

Role of RIG

Revolutionary Integration Group Inc (RIG) is currently developing three powerful AI and ML applications which in the future, can be highly beneficial to the logistics industry.  Trusted Authentication Token™ (TAT), a digital dry stamp to formalize documents, Dynamic Trust (DT) to evaluate Agent trust (handle digital data, complete assigned tasks, communicate securely with other Agents) and NIMBUS Private Integration Cloud (PIC).

RIG’s solution Dynamic TrustTM will remove the increased pressure on retailers/customer companies by improving their logistics methods and processes. This solution can address these challenges in several ways. Dynamic Trust and NIMBUS Private Integration Cloud (PIC) can provide a solution for a broad spectrum of companies from supply chains to the food industry, using Artificial Intelligence (AI) to optimize this process.

First, it can evaluate the delivery area as a “network of Agents” to include the vehicles and recipients; Nimbus (PIC).    Dynamic TrustTM can develop a trust level for each Agent considering the product or service’s characteristics, the delivery company, and the recipient and capturing the trust level and current status of each Agent.  The status of the Agents can then be used to optimize the Last-Mile delivery.

Second, Dynamic TrustTM can become a layer to measure verifications concerning whether the delivery car is in or on suspension, a delivery vehicles’ identity, and location.

Third, Dynamic TrustTM will functionally validate the delivery vehicles’ sensors, operator, recipients IoT (garage door openers) and share internal data. It can also be used as an established security protocol to control the access of malicious components into the IoT sensor system. Verification will be based on real-time tracking with the use of timestamps. Through these technological AI capabilities, Dynamic TrustTM can deliver additional value to logistics operations.

The NIMBUS PIC can in the future include multiple delivery companies covering the same delivery area to optimize across companies.

The most formidable challenge will be meeting the needs of all stakeholders to minimally disrupt the resources, budget, or schedule. Here are a few advantages that RIG’s products can offer desired companies to win them over using advanced AI technology.

 

Advantages of RIG’s Products  
Predict Driver’s Destinations Treating the destination as an Agent in the network allows the retention of information regarding access, hazards, thief threat, and customer availability.

 

Local traffic patterns can be captured regarding specific destinations.

AI an alternative to Fleet management Reducing costs & optimizing fleet operations
Correct Customer Information The customer does not reside at the location and has not to designate a location as an alternative address.

 

Excessive activity to the alternate site from many customers. May indicate scam or fraud.

Real-time order information Tracking of orders based on both GPS and delivery schedule as well as traffic.  Dynamic update for accidents.
Bots & Drone delivery Dynamic Trust is specifically created to empower autonomous systems.
Pattern Control Dynamic Trust feeds vehicle sensor information and delivery into NIMBUS cloud for pattern evaluation.  In the future, may include pattern information for numerous delivery services.
Manage Complex Datasets NIMBUS is designed for this feature.
Pricing structure disturbed Dynamic Trust continually monitors the actual cost of the delivery.
Maintenance (challenging to predict) By collecting the vehicle sensor information dynamically, maintenance can be predicted prognostically based on driving patterns and road conditions.
Change in usage of trucking The delivery vehicles’ sensors can be monitored, the abnormal performance of the vehicle is reported to the fleet manager, and the vehicle may be removed from service before breakdown. Companies are saving costs and time.
Quality control difficult for long distances The ideal implementation of Dynamic Trust is to consider the logistics network back to the various suppliers, capturing the status of each node while considering the local distribution area and recipient
Operational Failure in systems Failures in the logistic network can be rerouted to the best available alternative.
Up-skilling Staff (challenging to plan) Logistic Staff will receive continual reinforcement on their performance.  New training or Retraining can be identified.  Also delivery optimization identified by the Staff may be quickly integrated into procedures.

 

Revolutionary Integration Group can position “Last-Mile Delivery” for the future by keeping in mind of ongoing trends such as Rapid Order fulfillment, Improved Traceability, In-house delivery services, Micro-warehousing, Carrier upsells, Smart Technology, and Robots/Drones.

RIG is looking to potentially integrate its AI technologies with firms such as Amazon, UPS, Fedex, Grubhub, Walmart, Ubereats, Gopuff, and FleetPass. RIG’s AI technology promises significant benefits for businesses looking at ways to make their supply chains faster and cheaper while retaining quality control during the transportation of goods across long distances.

Figure 3 RIG’s Potential Customers in E-commerce Last-Mile Delivery

 

The current system of Last-Mile delivery can benefit from an innovative transformation. Customers have high expectations for their orders, and supply chains need to offer support through fast and efficient deliveries with up-to-date delivery information. The current Last-Mile delivery system is inexact when it comes to receiving real-time delivery data. New technologies, such as RIG’s Dynamic Trust and NIMBUS Private Integration Cloud (PIC), offer a unique opportunity to revolutionize and enhance the Last-Mile delivery model. RIG’s technology solutions provide additional and precise delivery information that significantly increases delivery efficiency, trustworthiness and transparency. Our technology is the missing piece of Last Mile delivery. RIG is looking forward to implementing our advanced technology solutions by partnering with large firms to address the current state of Last-Mile delivery and offer relief to supply chain operations.

 

 

References:

Business Insider, https://www.businessinsider.com/last-mile-delivery-shipping-explained

GoFor Industries. (2021, June 17). Last mile delivery: The Ultimate guide for 2021. GoFor. Retrieved September 29, 2021, from https://www.gofordelivers.com/blog/what-is-last-mile-delivery.

Create a new business model canvas. Canvanizer. (n.d.). Retrieved September 29, 2021, from https://canvanizer.com/new/business-model-canvas.

Bopage , G., Nanayakkara , J., & Vidanagamachchi, K. (2019). A Strategic Model to Improve the Last Mile Delivery Performance in E-commerce Parcel Delivery. Proceedings of the International Conference on Industrial Engineering and Operations Management Bangkok Thailand.