Micro-hubs. Cargo bikes. Drone deliveries. Crowd-shipping. Along with EV and AI, these buzzwords are defining the latest sustainability trends in last mile delivery. Let’s take a look at what’s behind them and driving sustainability in the delivery segment:
EV — Fleets go electric to lower emissions and fuel costs
Many delivery companies are fully electrifying their fleets. UPS plans to convert 50% of its global fleet to alternative fuel and advanced technology vehicles by 2025. FedEx is targeting a renewable electric fleet of vehicles by 2040.
Optimizing routes with AI and telematics reduces fuel consumption, mileage and emissions
Advanced technologies like telematics, GPS tracking and fleet management software, enable carriers to continuously analyze driving behavior, traffic patterns and order volumes to optimize routes.
Micro-hubs and cargo bikes reduce emissions
In dense urban areas, micro-fulfillment centers, electric cargo bikes and even drones are gaining traction for shorter distance “last mile” deliveries. The last-mile supply chain made possible by local fulfillment centers could lower last-mile emissions
20% by 2025.
Collaborative delivery models improve vehicle utilization and reduce trips
Crowd-shipping empowers individual drivers with electric vehicles to make deliveries, reducing the need for dedicated fleets. Companies also partner with existing delivery services to consolidate packages onto existing routes.
Incentivizing low-emissions transportation
Carriers are starting to offer cash incentives to drivers who adopt low-emission vehicles or drive efficiently.
Follow the leaders
The sustainability initiatives pioneered by leading delivery companies showcase the industry’s commitment and innovative spirit in minimizing its environmental footprint. With an expected 32% jump in carbon emissions from urban delivery traffic by 2030 globally, the entire last mile industry must “follow the leaders” and be on board with these critical sustainability measures.
Sources:
https://www.accenture.com/content/dam/accenture/final/a-com-migration/r3-3/pdf/pdf-148/accenture-sustainable-mile-pov.pdf
Renee Paul is vice president of BizCHOICE Transportation, a division of Specialty Program Group, LLC. Renee has been instrumental in creating contract carrier insurance programs for the Heavy Bulk Last Mile Delivery segment of the transportation industry. She also has experience integrating a variety of technology solutions with insurance offerings to promote safety and compliance across transportation networks and logistics companies. Renee earned a Bachelor of Science degree with a major in Business Management and Administration from Humboldt State University, and is a licensed broker in Accident, Life and Health, Property and Casualty and Surplus Lines.