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E-COMMERCE LAST MILE DELIVERY

Opportunities and Challenges:

The e-commerce last mile delivery consists of B2C packages delivered to houses or apartments. The industry is divided between small package (under 70 pounds) and large format (over 70 pounds) which sometimes requires "white glove" delivery. The industry experienced tremendous growth pre-COVID and during COVID as the economy shifted to pureplay and omni-channel e-commerce. However, the shift from goods to services, lasting nature of the items, and decline in consumer spending have resulted in a rapid market decline post-COVID.  

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Critical questions for the industry include how long will this market recession last, how will companies handle the downturn, and will enough capacity survive to meet demand after recovery? Companies will need to improve operational efficiencies and ensure access to labor supply in order to weather market volatility. Uncertainty within the market will create many challenges for carriers, but also opens the door to unique opportunities. 

Industry Sub-segments: 

  • Small Format Local Deliveries Providers​

  • Large Format Deliveries Carriers

    • Simple Drop-Offs​

    • White Glove/ Two Man Delivery and Removal

  • Asset Based, Hybrid, and Non-Asset Provider 

Previous Experience 

  • Network profitability assessment for leading large format provider of non-stop delivery

  • Outlined areas for pricing, margin, and route improvements within terminal and last mile networks

  • Evaluated and made procurement recommendations for outsourced LTL capacity 

  • Performed a technology assessment to determine upgrades required to reach best in class last mile operations

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