“Logistics companies are heavily focusing on improving their on-time delivery rates, which can impact both costs and customer satisfaction.”
Logistics providers are the backbone of the last mile and most retailers today rely on them to complete deliveries to consumers. But many retailers experience challenges with their logistics partners. Improved integrations between the two parties can help mitigate these challenges.
Like retailers, logistics providers are most concerned with reducing costs and improving customer satisfaction in the last mile. But logistics companies are also heavily focusing on improving their on-time delivery rates, which can impact both costs and customer satisfaction.
As logistics providers expand and scale, their priorities change. And for larger providers, new technologies such as electrified and autonomous fleets are on the horizon.
Logistics
64%
Faster
Delivery
Flexibility
46%
Increased
Capacity
43%
Reduced
Cost
37%
Scalability
36%
Benefits retailers have with outsourced delivery networks, % claiming:
Retailers Outsource Deliveries for Speed, Flexibility
33%
#1
25%
Of retailers claim a lack of reliable information from carriers as a challenge with outsource delivery networks
Retailers rank carrier performance as the top factor that inhibits delivery speed
Of retailers claim carrier performance is a challenge for returns
Select challenges retailers have with logistics carriers
But Many Retailers Have Challenges with Carriers
73%
62%
57%
74%
64%
60%
52%
45%
36%
57%
36%
32%
32%
32%
21%
28%
Cost-per-delivery
On-time delivery rate
Customer satisfaction
Average delivery time
Visibility and tracking
Returns
Capacity utilization
Sustainability
Under $100M
$100M or more
As logistics companies scale, priorities change. For larger operations, on-time delivery and tracking become greater focuses, while increased scale improves cost-per-delivery. With size comes complexity.
Last-mile delivery KPIs most focused on improving, among logistics providers by revenues
How Logistics Providers
are Improving Service
69%
47%
43%
41%
41%
32%
30%
Fuel cost
Labor
Address location
First-delivery failure
Routing
Returns
Lost package
Major factors that contribute to high last-mile delivery cost, among logistics providers
High Delivery Costs Driven
by Multiple Factors
60%
57%
46%
45%
37%
28%
Major factors that inhibit delivery speed, among
last-mile logistics companies
% of logistics providers claiming all or almost all
deliveries made on-time, today vs. 2027
Routing
Address Location
Driver Productivity
First and/or mid-mile delays
Costs
Fulfillment
Today
2027
Major factors that contribute to high last-mile delivery cost, among logistics providers
On-time Delivery Hindered by Routing, Address Location
77%
Use separate technology solutions for returns
61%
Home Pick-up Returns
53%
Cost
53%
Communication
53%
Scheduling
Top 3 challenges logistics providers have regarding returns
Scheduling, Communication and Cost are Top Returns Challenges
Total:
By revenue:
Under $100M
$100M+
Future fleet technologies logistics providers are considering using in the future, % claiming
EVs on the Horizon; Larger Logistics Providers Eyeing Autonomous Technology
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