Last-mile delivery is fraught with challenges. Rising shipping costs, cumbersome processes and the growing demand for seamless service highlight the urgency for businesses to rethink their approach to this crucial stage.

Following are the key shipping trends anticipated for this year, and the innovations that are poised to revolutionize the last-mile delivery process.

A focus on sustainability. The final leg of delivery is a major a contributor to heightened emissions and environmental strain, largely due to the reliance on fossil fuel-powered vehicles. 

Beyond emissions, last-mile delivery compounds traffic congestion, especially in densely populated urban areas where a multitude of delivery destinations converges within limited spaces for vehicles to maneuver.

To confront these environmental challenges, both companies and policymakers are actively exploring alternative delivery methods, including electric and hybrid vehicles, and bike and on-foot couriers. 

The integration of electric power is nothing new to the courier industry; FedEx was the first delivery company to use hybrid vehicles over 20 years ago. However, the scale of these companies adopting zero-emissions goals at a global scale is unprecedented. FedEx now plans to have its entire parcel pickup and delivery fleet converted to electric vehicles by 2040. 

These alternatives offer significant potential to reduce emissions, alleviate traffic congestion, and elevate both delivery efficiency and customer satisfaction.

Faster deliveries. With technology speeding up most facets of our lives, it’s only natural that today’s consumer expects their deliveries to be just as swift. The expectation for next-day and even same-day deliveries is increasing, with 78% of consumers prioritizing delivery within two days when making a purchase. 

Not meeting these expectations can lead to a significant loss of customers. Studies have found that almost half of consumers will abandon their online shopping carts if delivery lead times are too long. 

To ensure that your delivery service aligns with customer expectations, it's pivotal to establish authentic and attainable commitments. 

Micro-fulfilment centers, for example, are revolutionizing the processing and swift dispatch of goods to customers. Positioned in densely populated areas, these localized hubs strategically decrease delivery times by containing a larger stock of high-demand goods. 

Businesses must also streamline the shipping process by implementing reliable route planners. These tools provide accurate and immediate ETA information for customers. Meeting customer delivery expectations relies on proactive communication and the timely sharing of real-time tracking information.

By reimagining last-mile delivery through innovative technologies and sustainable practices, businesses can meet evolving consumer demands while minimizing environmental impact.

Drones and autonomous vehicles. Once a speculative notion, drone delivery has swiftly transitioned into a reality within the logistics sector. Forward-thinking businesses are actively integrating this technology into their operations, recognizing the limitations of conventional delivery methods.

Walmart, among others, has expanded its network to offer drone deliveries in seven states, completing over 10,000 deliveries since launching its program in 2021. Similarly, Amazon.com recently unveiled its new Prime Air drones, soon to be used for parcel delivery in the U.K., Italy and three U.S. locations by the end of the year. The drones are designed to deliver packages of up to five pounds in under one hour, and can even fly in light rain.

Drone delivery addresses challenges posed by congested roadways, geographical barriers and the demand for swift services. However, it also introduces hurdles such as airspace management and privacy concerns, requiring careful consideration and clear regulatory compliance.

Transformative technologies. Artificial intelligence offers delivery companies solutions to navigate the complexities of last-mile logistics. Its capabilities extend to optimizing delivery routes, resource allocation, demand prediction and environmental impact mitigation.

The integration of cognitive robotics presents intriguing possibilities for addressing intricate last-mile delivery scenarios. Equipped with advanced AI and natural language processing, cognitive robots can navigate complex environments.

Predictive analytics play a pivotal role in enhancing last-mile delivery efficiency by optimizing routes based on traffic patterns, resulting in reduced delivery times and operational enhancements.

Revolutionary packaging solutions. The smart packaging market plays a crucial role in enhancing delivery efficiency and transparency. Valued at $35.92 billion in 2023, it stands as a cornerstone in enhancing the efficiency and transparency of the delivery process. Through the use of advanced sensors, smart packaging monitors package conditions such as temperature, pressure, weight and humidity, combined with precise tracking of location and estimated time of arrival.

Active smart packaging transcends the conventional role of mere containment and protection. It actively engages with the product, preserving quality, freshness and shelf life. Additionally, connected packaging emerges as another innovative approach, intertwining parcels with external consumer devices like smartphones, tablets and computers.

This connectivity allows both businesses and customers to access real-time information about the parcel, fostering transparency and enriching the overall customer experience.

Charles Haverfield is chief executive officer of US Packaging & Wrapping.