The Last Mile is another challenge for the retail supply chain
Online trading has already acquired universal proportions. According to experts, this year online sales will increase by 20%, and the total amount of trade transactions will reach $1.5 trillion. Expanding into new markets, the elements ecommerce leaves no other choice for retailers and trading platforms except anywhere and anytime to be ready to satisfy the requests of buyers.The new wave in the development of e-commerce is to increase the convenience of customers through the provision of delivery services without additional price burden on the buyer. Regardless of where a customer prefers to buy - in a store or an online catalog - his expectations regarding the convenience of making a purchase, delivery conditions, exchange and return options are growing day by day, and these expectations are influenced by geographic, demographic and other factors.
Behind the scenes of the vibrant e-commerce scene lies a complex system of product manufacturing, inventory storage and distribution, supply chain management, and retail tasks. Even giant retailers who have managed to establish sales on low prices and delivery on the same day, are in constant search effective solution last mile problems.
In this pursuit of perfect store performance, the use of multiple communication channels is critical, as the success of a business depends to a large extent on the effectiveness of the last mile system. Trade enterprises and online stores have a different range of products and sales volumes, so a single solution how to cope with this challenge, alas, has not yet been found.
And yet there is a general scheme according to which any company can form a supply chain management strategy that will maximize the optimization of the transportation system and develop efficient technology"last mile".
Six Steps to the Last Mile
If your company has to deal with the last mile problem, solving it will first require reviewing the entire supply chain and how the inventory management system responds modern requirements buyers regarding the purchase and delivery of goods. The ideas that we will consider are just the beginning of the journey, but they can be useful for you to make optimal decisions, help you understand the complexity of the “last mile problem” and develop an optimal scheme for overcoming it.
1. Always remember what is important to the buyer
First, answer the question: “What are the expectations of our customers? How do they influence their purchasing behavior? A recent experiment showed that 93% of online shoppers made one choice or another to qualify for free shipping. Bonuses, shipping discounts, various loyalty programs can also affect customer preferences.
Close attention to the preferences of your customers, profitable offer and convenient know-how, such as zip codes, delivery windows, or online ordering points in brick-and-mortar stores, will certainly benefit the business. Use your customer insights and market research to improve your supply chain and your bottom line will grow.
2. Try to innovate, such as the supply of goods in a kit
The problem of the "last mile" reduces the profitability of products and complicates the life of carriers who have been facing the dilemma of compactness of transported goods for decades. More than half of the buyers removed goods from the baskets of online stores due to the high cost of delivery, the rest - due to the unavailability of free shipping. High profits from sales, for example, netbooks or tablets, will cover the cost of postal items, which cannot be said about inexpensive goods, which should still bring profit to the seller.
In this case, it is necessary to strive to change customer expectations in order to increase the profitability of last mile delivery. To pay back free shipping, you can offer customers to make additional purchases along with the main one, for example, to purchase a book, a piece of clothing or dishes along with a computer. This will increase the cost of one order, and at the same time the number of goods transported. Another option is not to ship immediately, but when a certain amount of goods has accumulated, which also optimizes the delivery process and reduces the negative impact of the “last or” on the overall income. As long as there is room for more traffic, you can safely manage customer expectations in order to at least temporarily overcome the “last mile problem”.
3. Explore non-standard shipping methods
Trading companies that have built their business within the walls of traditional stores intend to fight to maintain their positions even with growing competition from Internet sites. Customers love to go to ordinary stores, because this is a special event: a walk along shopping center, the opportunity to see, hold the goods in your hands before you buy. However, one cannot ignore the “biting” costs of maintaining the premises and staff.
Leverage real estate and inventory to develop the best last mile strategy and increase revenue. Let the traditional outlets will become some kind of distribution points of your electronic trading company, thanks to which you will be able to instantly fulfill orders and save on the transportation of goods.
You can also engage a logistics provider to arrange transportation, solve a last mile problem, or assess the status of your transportation system. You will likely need to make changes to your list of shipping options to keep up with customer needs and keep your company profitable.
4. Optimize the transportation system to overcome the problem of the last mile
The biggest mystery, and at the same time the key to success, lies in how the supply chain is replenished with goods and passes the “last mile”. It is at this stage that the cost of delivery changes dramatically, and it is here that innovations should be introduced. But replacing traditional methods delivery, we must take care to improve the security systems and cargo tracking in order to quality goods was delivered to its buyer. Therefore, the development of technologies in this area is of great importance.
Courier services specializing in small parcels have always followed the principle of delivery from many points to one place in their work, thereby optimizing delivery and solving the problem of cargo density. However, now they are faced with the problem of optimizing delivery to each individual address. In this case, the financial burden is on courier service and as a result on the customer, which follows from the recent increase in the price of bulk parcels.
Last mile transportation costs vary and have to be borne in one way or another by all participants in the supply chain. There are several options: optimization of packaging, delivery of several orders along the way, transportation of more goods that have accumulated by a certain moment. So, you can reduce the cost of transporting goods somewhat by introducing innovations and increasing the compactness of delivery.
5. Consider the shape of inventory and its place in the supply chain
The ability to quickly, even in advance, respond to changes in demand is perhaps the main key to success in e-commerce. Sellers tend to develop a system of flexible inventory management so that goods are in advance as close as possible to a potential buyer. For development optimal strategy inventory management apply modern logistic methods and planning techniques that accurately predict demand for goods and any changes in rules and regulations.
Until recently, an additional stock of goods was used to respond in a timely manner to fluctuations in demand. With the advent of innovations in the field of delivery, the policy of price matching, the ability to read a review or leave a review about a product, irrational placement of goods becomes almost the first price-determining factor. A flexible inventory distribution system and availability at any time can be a huge advantage for your business.
Sooner or later, stocks will have to be placed everywhere, and the traditional system of packaging and distribution of goods in brick-and-mortar stores will be subject to change, as it lacks flexibility and transparency. Revision of inventory management methods, reorganization and improvement of communication channels, creation of an effective information system management, associated with global environments and based on specific storage points of stocks, will allow efficient distribution of goods in the supply chain.
By gradually replacing the old distribution method (sales in brick-and-mortar stores) with a modern network of storage/distribution points, and at the same time connecting these points with traditional stores, you will be able to develop your own unique planning system. Control over stocks of goods at all points will allow you to organize cost-effective delivery to the buyer from the nearest point, and thereby successfully solve the problem of the "last mile".
6. Learn how to effectively manage returns
Many entrepreneurs try to think ahead about ways to overcome the last mile problem, and this is no coincidence. As a rule, the cost of returning goods is not covered at all. Try to make return management one of the last mile tools, and you will kill two birds with one stone: create a convenient return service for customers and establish a smooth infusion of returned goods into the supply chain.
In order for return operations at the end of the working day to be effective, the number of stops should be minimized. Drivers can pick up a return along the way while following their normal route. Another way is to develop a system to reward customers for returning to a store or a special collection point.
From the outside, it all looks complicated, because it is. Some businesses are already reaping the benefits of implementing a strategy to monitor inventory and fulfill deliveries in real time, including brick-and-mortar inventory and online catalog assets, while developing better methods to address the last mile problem.
However, all these transformations could not completely exhaust the issues related to transportation of the "last mile". One thing we know for sure is that over the next few years there will be an active search for ways to solve the last mile problem. Those who decide to develop their own system will have to work out several different schemes for the distribution of goods at once. This is necessary for an objective assessment of their cost, as well as for gaining valuable experience in solving the “last mile” problem. In order to map distribution points correctly, you will need to build a supply chain model and start the inventory optimization process.
The profitability of an enterprise directly depends on the efficiency of the organization of the supply chain. The goal of all efforts is:
availability of stocks in the right place at the right time;
development of a flexible supply chain, in which stocks are as close as possible to potential client;
creation of delivery methods that are convenient for buyers and not costly for the seller;
implementation of a well-thought-out return system and customer retention strategy.
Airat Ikhsanov,
Head of the International Consulting Company SCM Consult.
The rise of e-commerce, the emergence of crowdsourced apps, and same-day delivery have revolutionized the last mile delivery segment. RetailDive highlights nine trends that are impacting last mile delivery
1. Faster fulfillment
Particular attention is paid to logistics and fulfillment due to the increase in the volume of orders on demand or on the same day.
“We are seeing huge pressure on the fulfillment side to process orders at a much faster pace than is allowed. modern technologies, says Michael Armanius, vice president of sales and marketing at Datexcorp (a provider of third-party warehouse management (3PL) solutions. “We are typically expected to complete all operations in less than an hour, all sudden needs must be resolved in within minutes, which creates problems in terms of planning.”
This is especially noticeable in the pharmaceutical and food delivery markets. Customers want to receive purchases within hours. “By the time the order arrives, it needs to be processed and prepared, which means bottleneck for us,” says Armanius.
2. Sharing economy/crowdsourcing applications
In 2015, venture capital investments in supply chains and logistics startups were more than four times higher than in 2014 ($1.2 billion vs. $388 million). The amount of venture investments invested in this sector in the first quarter of 2016 alone amounted to $1.75 billion.
Companies like UberRUSH for packages, Postmates, Deliv, and even Amazon Flex provide delivery via independent drivers. Companies send order information to their apps to alert drivers of available orders. “Picking and delivering goods is not as efficient as delivering something when you can manage the route, you have the goods in the truck and you know where to go,” says Andre Farand, Accenture Lead Mail and Batch Consulting Consultant. . Technology is increasing vehicle use, and those who own a car (or bike) can do so if they want to make extra money.
These services have limited geographic coverage and are not yet widespread. Venture capitalists are interested in companies based on information and technology, not on assets such as vehicles. They are aimed at companies using analytics and information to figure out how to get the job done for less and use drivers with their cars as excess power. “There will be a fight between the guys who own the buildings and the assets versus the guys who have the apps and the information. The winner will be the one who has both,” Farand said.
photo: www.gumtree.co.za
3. Focus on transparency
The technologies used by delivery people have improved the traceability of purchases at every stage of delivery. Regional and smaller last mile delivery organizations typically do not have the technology to provide this data.
“You run into confusion about data and how to share it,” says Farand. - This data is important for tracking if the packet is delayed or lost. But smartphone apps have revolutionized the GPS tracking experience.”
Customers can now see where the driver or package is. “We can track whether the person making the delivery went to the destination or not.” Although the process is not yet standardized across the board, consumers will increasingly demand that the industry move forward in this direction.
4. Development of the postal service
Traditional carriers such as the United States Postal Service (USPS) have changed over time and continue to grow. Given the decline in mail delivery volumes, now is the most right time to increase the delivery of e-commerce goods.
Adding packages to home delivery does not incur additional costs for USPS, as the carrier will still go to the specified address. It is more expensive for UPS or FedEx to make the same delivery as it is an independent stop.
Other national postal services can serve as an example. While the USPS does not deliver restaurant meals, the New Zealand Post has launched a pilot delivery of Kentucky Fried Chicken to boost its revenue as postal delivery volumes have declined in recent years.
5. Domestic delivery services
A growing number of companies, including Amazon, are using their vehicles for last mile deliveries. “Traditionally, our clients have not been in the transportation business. They didn't have trucks or vans but are now cooperating with competitors or other companies in the region to use each other's transportation assets,” said Armanius.
Some 3PL companies now have their own local delivery services. They have their own vehicles and have drivers for local, short-term transportation. “We have a client in New York who has 400,000 square feet of warehouse and 17 vans, and all day long they collect pickups and deliveries of product at the request of customers,” said Armanius.
6. City warehouses
There were at least 58 Amazon Prime Now centers in the US last year for customers requiring immediate same-day delivery. A growing trend is for organizations to build or take advantage of urban warehouse space and have easy access to products for fast delivery clients.
"This the only way reduce delivery speed or transit time,” Farand said. According to him, Amazon's two-hour delivery is unheard of. “This is what excites everyone. I haven't heard of any retail network or a delivery company that can offer delivery like Amazon does now.”
Amazon has a market leader advantage and most retailers trying their best to catch up with him. Major retailers offer two-day shipping on minimum orders, while Amazon offers two-hour shipping.
7. The carrier becomes the seller
Using Big Data, retailers can predict what else a customer might want, even if they didn't order it. The mobile warehouse concept is gaining momentum. The delivery person can upload additional item into the vehicle, allowing deliverers to make additional sales during the delivery process.
Just as Amazon shows customers additional products during the checkout process, a delivery person might bring items that a customer ordered before or might want to purchase in person. “We see it in the food market,” said Armanius, “as well as in the home goods and even clothing segment.
8. Intelligent technology and sensors
In addition to being transparent at every step of the delivery process, customers want to track temperature-sensitive items.
“Many of our customers put various sensors and controls into the packages themselves,” said Armanius. - Thus, pharmaceutical company, a frozen food or spirits manufacturer will know the temperature and possibly the humidity level at every turn. It's becoming the industry standard."
Data centers use weather data for planning, adding additional packaging materials to account for temperature changes. If they know they will be delivering goods to Tulsa during the summer, where temperatures reach 38ºC, they can add additional freezers or dry ice.
9. Delivery by self-loading cars, unmanned aerial vehicles and robots
Although these futuristic delivery options are being developed and tested, they are not yet developed. But keep an eye on them for the future.
If packages can be delivered by autonomous vehicles or drones, that would be a game-changer, Farand says. The highest shipping cost is labor, which accounts for 60% of the cost. Supplies are currently limited by the cost of labor force, availability and change. Robotic delivery can be done 24 hours a day. However, drone shipments may have limited use in highly urbanized areas due to regulatory and operational issues.
Robot delivery is already being tested in San Francisco for Yelp Eat24, using Marble robot on city sidewalks. One drawback is that the robot needs human help if problems arise. McKinsey predicts that in the future, autonomous vehicles and unmanned aircrafts will deliver 78% of all items, with traditional delivery being only 20%, and another 2% being courier.
Online stores often talk about the pros and cons of logistics in Russia. The Rusbase publication decided to collect the opinion of industry experts - what features of the market situation in Russia affect logistics, what they see as shortcomings in their work, and what processes they would like to change.
Our manager Matvey Kozlovsky commented on the problematic issues of the logistics market, such as return processing, last mile, trunk delivery, money acceptance and collection. He wrote a lot and in detail, so not all of his comments were included in the article, which can be read at the link.
Excerpts not included in the material are published on our website.
Before talking about problematic issues, let's define the terms. Logistics in e-commerce is the organization of transportation of goods / parcels between suppliers, sellers (online stores), service providers and buyers. The "correct" logistics, which everyone is chasing, first of all, should be fast and cheap, and secondly - convenient and insured against loss or damage. So, all the main problems in logistics are tied to these four main parameters.
Returns processing.
At its core, return logistics is not much different from direct logistics. At point A, you need to pick up something and transport it to point B, keeping the attachment and properly documenting all the steps for reporting. Now the main channel for sending returns is the Russian Post, with all its shortcomings, the main of which are long terms, low delivery rates, and unguaranteed safety of goods during transportation. The provision of such a service by commercial express delivery companies can solve this problem. It is doubly convenient for the buyer when he can make a return through the same company through which he received the order. The ability to return unsuitable goods to the online store by calling a courier or handing over the parcel to the nearest pickup point on your own provides an alternative to returns via the Post. It's fast, the return is protected by special packaging (safe package), the sender has access to informative online tracking and a call center service.
Our company provides a return service for customers of online stores for which we deliver, however we want to make it standard for all our online stores.
last mile
Last mile problems are understood as poor control and manageability of delivery processes in settlements outside the two capitals. That is, where the relative density of orders is low, there is little competition between providers and, as a result, poor discipline and organization of delivery. Each company solves these problems independently, within the framework of obligations to its customers and recipients.
The most important technology, or rather the approach to solving the "last mile" problem, is the standardization of delivery processes, the derivation of a single delivery procedure, regardless of locality, definition of quality parameters, construction unified system delivery control, available with different data details for the management of the delivery service, customers and recipients.
Trunk transportation to the regions
There is a set of companies that provide trunk transportation services separately by car, railway and air + combined. This business was formed on the basis of the transportation of commercial cargo even before the emergence of e-commerce companies in Russia in the form in which we know them now. This business is characterized by closeness, not flexibility, the core of the business is to a lesser extent technology, to a greater extent the development of efficient routes, competitive rates, and expansion of the delivery zone.
Thus, inside the main transportation, some third-party high tech are unlikely, so it remains to wait for a positive movement from the existing trunk operators.
Cash on delivery and collection
The main problem of the overlay is the very fact of its existence. The uniqueness of Russia as an e-commerce market is in the overwhelming percentage of orders with cash on delivery (it fluctuates around 90% for different segments of goods). Such cash flows attract the attention of the state - the chain of transactions from the moment of collecting cash to transferring it to the store is complex, not instantaneous (in fact, from several days / weeks to several weeks) and risky. Payment bank cards solves these problems, but the use of cards by the population outside million-plus cities is negligible (an average of two transactions per month - incoming wages and on the same day cashing out the entire amount), and in the millionaires themselves, the percentage of use when paying for the received order rarely reaches 10%.
Logist.Today offers its readers an article Adam Robinson, published in the online publication cerasis.com, where he examines the new trends in last mile logistics that have emerged in Western countries.
Shippers face many challenges in getting goods to the end consumer, so last mile logistics will be a key area of transformation in the coming months. Consumer demands and expectations are growing, and about 25% of consumers are willing to pay extra for the same day delivery of ordered goods. In addition, the same day delivery method will reach 25% market share by 2025. As early as 2018, same-day delivery and last mile logistics will be valued at more than $1.35 billion. Logistics Management , e-commerce is expected to grow to $2.4 trillion in 2018. To gain a competitive edge in last mile logistics, shippers need to understand the top seven trends in last mile logistics.
1. Faster order fulfillment
Lead times vary considerably. Consumers want faster order fulfillment, which means shippers need to as soon as possible move large quantities of goods. Order processing, which previously took about an hour, now needs to be reduced to three minutes, if not less. Therefore, last mile logistics can finally become part of the solution to this problem. The current generation of consumers are willing to pay 30% more to receive the ordered goods on the same day, according to the consulting McKinsey company& Company, and the vast majority prefer to pay extra for guaranteed delivery, as shown below:
Consumer preferences in the field of goods delivery, %
70% of consumers are satisfied with the cheapest form of home delivery
5% willing to pay more for reliable, on-time delivery
23% of consumers are willing to pay extra for same-day delivery
2% willing to pay more for instant delivery
Together with the sudden popularity of parcel delivery, the last mile logistics industry will continue to grow at 10% annually.
2. Influence of competitors
Supply chain competitors such as venture capital startups are also influencing last mile logistics. Up to 84% of the world's freight comes from fare including fuel, labor resources, technology and asset tracking, accounting for over $800 in the industry. According to Business Insider, Amazon is already on its way to building its trucking app along the lines of Uber. Unfortunately, the tech landscape is replete with failures of such startups, but the trend is clear and shows few signs of regression.
3. Intelligent technology for shipping tracking
The use of apps like Uber also means another impact on trends in last mile logistics - the use of smart technology to track goods. With the help of the Internet of Things (IoT), smart technologies and sensors can successfully track the shipment of goods in real time. Both consumers and shippers will be able to receive SMS alerts, email alerts, and even Google alerts for every shipping move. Combined with the upcoming Electronic Logging Device (ELD) regulation, the use of smart technology for tracking last mile deliveries will increase.
4. Analytics to reduce costs
The amount of information coming from automated systems and intelligent technologies, may have another purpose with the use of analytics. Analytics enable supply chain actors to isolate cost drivers across all delivery types. Although minor changes may not have a significant impact on the initial costs, data analysis provides an opportunity to minimize the cost of the costs. As a result, the overall cost of last mile delivery can be reduced, encouraging more consumers to opt for same-day delivery and other express delivery options.
5. Internal service delivery
Outsourcing seems to be a hot topic this year, especially among contract logistics (3PL) companies. However, the sudden popularity of last mile logistics is motivating even more shippers to get into this type of delivery themselves. In other words, shippers use their vehicles for short-term delivery of goods to local consumers. 90% of shippers have fewer than six trucks in their fleet, so outsourcing may be required to increase last mile delivery options.
6. Delivery using autonomous vehicles, drones and robots
Autonomous vehicles (AVs), also known as self-propelled vehicles and trucks, will also impact the logic of the last mile. Self-driving trucks, drones and robots will be key to increasing last mile delivery options while maintaining high reliability and express same day delivery in both rural and urban areas. Existing the legislative framework concerning the transport industry is unlikely to allow large-scale implementation of self-propelled truck delivery options within the next two years.
7. The driver becomes a salesperson
Shippers need to find ways to attract more potential buyers and turn them into consumers. While about 65% of all shoppers use the Internet to search for information before making a purchase, the most effective way the sale of goods remains the direct placement of information and the product to consumers. Combined with the use the latest technologies, including autonomous trucks, the role of the driver will change. The driver will become a salesperson, selling goods directly from the truck, but there are a few problems shippers will face with this arrangement, says Veriship's Susie Walker. These include the following:
- Who will take responsibility for unpaid goods?
- What if the buyer wants to return the goods purchased from the drivers?
- How will drivers process payments and keep records of them?
- Will commissions be paid to the original shipper?
- Who will be listed as the official owner of the goods for inter-regional and international deliveries?
Last Mile Logistics Revolution: Are You Ready?
Impressive changes are taking place in last mile logistics, and the level of technology used to push the boundaries of last mile delivery and same day delivery is growing in complexity and scope. Already today, shippers must take into account the trend in last mile logistics, or they will face the loss of their competitive advantage, especially with e-commerce giants such as Amazon, Walmart and Target moving steadily towards instant delivery as part of last mile logistics. How will your organization prepare to cope with the ever-increasing consumer demand for logistics deliveries last mile?
Logist.Today reminds that Currently, the delivery of goods to the end consumer in Ukraine is in its infancy, when compared with this type of service in Western countries. However, it is developing rapidly and soon domestic companies will face the same problems as their counterparts in Europe and the United States. It is quite possible that some of the readers will need the information presented in the material, from which they will single out a rational kernel.
The popularity of the Internet of Things is being driven by the growth of e-commerce
Industrial globalization and the rise of e-commerce are bringing new challenges to trade and logistics companies. As a recent Accenture study showed, customer expectations are now based on three main points.
Firstly, this is delivery control. People want the best last mile service, when the purchased product goes directly from the seller to their hands. Quality control of delivery gives them the opportunity to choose how, when and where their packages are delivered.
Secondly, delivery method. There are more and more options for receiving parcels. People can use the pick-up point, postal service, automatic parcel locker or luggage storage, which guarantee a reliable, round-the-clock, and sometimes anonymous delivery option.
Third, delivery terms. For some people, it is important to pick up the goods as soon as possible, while others can do it only after a week. For logistics companies you need to focus on giving the customer a choice of delivery times for their convenience.
These points will eventually lead to delivery automation. According to a study by McKinsey, automation in the last mile of delivery will reach 90% in ten years. Drones, parcel lockers and autonomous vehicles will be used for this. And if we consider them as devices of the Internet of things, the restrictions that exist today can seriously hinder the subsequent growth of the market.
What are they? First of all, the prevalence of such devices requires a serious level of security for the entire ecosystem. And these are not empty words. In 2014, the first cyberattack using the Internet of Things took place, during which 750,000 client devices were affected. And there is no doubt that in the future, cyberattacks on IoT systems will be more powerful than they are now. Therefore, tools that ensure last mile delivery must be well protected. This will ensure uninterrupted operation and the safety of confidential customer information.
The second point is the growing number of devices. They will become more and more, they will require wider communication channels and high computing power of cloud services. A large number of devices will also require automated maintenance systems, because you cannot assign an operator and a system administrator to each drone. This, in addition to high safety requirements, will require significant capital investment.
The third limitation is the ever-increasing complexity in the interaction between companies. For one corporation, the monopolization of the entire vertical of procedures is a plus. For example, Amazon this year launched delivery to end users, which allowed them to close the entire chain of work with customers - from sale to delivery. Large players create standardized supply models, which is why small and medium-sized companies cannot compete with them without establishing cooperation. And it turns out that different companies must exchange customer data with each other. And because of different approaches and security standards, leaks of confidential information can occur. This is the third major issue in the industry - the security, privacy, and confidentiality of customer data.
Blockchain as a solution to last mile delivery problems
There are many different approaches to security and other critical issues in the operation of the Internet of things. One of them is the use of blockchain technology. It will revolutionize and make last mile delivery solutions truly flexible, autonomous and secure.
To understand how this works, let's take a look at the description of the infrastructure elements of the blockchain and the Internet of things:
1. IoT devices interact with the physical world, receive information, turn it into digital data and store it in a register like a normal chain.
2. The blockchain stores one or many such chains in the form of a chain of blocks. At the same time, the side chain can be used to speed up transactions, reduce costs and computational load.
3. Smart contracts define actions for physical objects. It can be an independent program for each station or device. It sets the goal, plans, policy and context, monitors their implementation, and also updates the status of the register through a consensus mechanism. In other words, the actions of the device in the physical world depend on the state of the register. And this state, in turn, is set by a smart contract.
So in a simple way blockchain technology solves the problem of increasing the number of devices in the field of last mile delivery.
Safety. Decentralization of the system will reduce the risk of failure of the entire network, because the integrity of the system will no longer depend on single nodes. Instead, it will rely on consensus between nodes.
Expandability. Computing power and information storage will be redirected to all devices, not central servers. Thus, the decentralized system will be more flexible and make the management of last mile devices easier.
Compatibility. Open protocols will establish trust between clients to share and securely use data. In addition, distribution and logistics companies will be able to exchange customer data without risking security.
