Quarterly Live Group Demo Watch Now

Sifted logo

Challenge of Solving Last Mile Delivery

by | Aug 20, 2018

2 min read

Surging demand for e-commerce deliveries pushed UPS and FedEx to invest billions into upgrading their networks. A big part of that upgrade is overcoming the challenges of last-mile delivery.

Last month UPS announced an initiative to test “smart lock” technology to automate package delivery in hundreds of apartment buildings in Manhattan and Brooklyn using Latch’s “smart access system.” This is a win-win for both companies – it makes Latch attractive for landlords to create worry-free package deliveries and decreases repeat delivery attempts for UPS.

The Latch and UPS program enables delivery drivers to drop multiple packages at secure locations (lobby, front desk, package room) inside multi-family buildings. The goal is to reduce package theft, decrease repeated delivery attempts and make the last-mile cost-effective and convenient for the carrier.

Using a handheld device, UPS delivery drivers receive unique access credentials for each building on their route. Latch creates a traceable record every time a driver enters a building (sounds like an example of IoT). UPS will determine the potential savings from delivering multiple packages on the first attempt. This is a progressive step as traceability is hard to come by for local and regional carriers who cover the last-mile.

While it’s a step in the right direction, they’re not the only ones doing it. Latch is one among several companies that offer a smart last mile location network or smart lockers.  It’s a trend that’s spreading and it has its advantages:

  • The shipper saves money by turning a residential delivery into a commercial one (perhaps no more residential surcharge).
  • The carrier makes more money delivering more packages to one stop and avoid repeat attempts if someone isn’t home.
  • The customer wins because they can get their package at their convenience and don’t have to worry about theft.
  • The business hosting the locker drives more foot traffic to their business.

Though this provides some relief for UPS and the pains they experience with last-mile – as well as peace of mind for customers, it wouldn’t be shocking if UPS added a smart lock delivery fee to help meet their revenue goals. The data collected will show their time and money savings and guide their strategy on how to generate more revenue by adding another surcharge to your invoice.

Keep up with rate increases, new surcharges, policy updates, and more by following us on social media (LinkedIn, Twitter, Facebook). We proactively keep a pulse on UPS and FedEx and will communicate the latest news so you’re in the know and prepared to take action if necessary. And feel free to contact us if you have any questions or want insights tailored to your business.

Topics: Data Science, eCommerce Shipping, Surcharges, UPS
Topics

Check out related resources at Sifted.

Parcel Carrier Diversification 101

Parcel Carrier Diversification 101

Last mile delivery has never been more important to businesses. In 2023, the global last mile delivery market was ...
Read More
RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

At the end of February, supply chain leaders from the nation’s largest retailers converged in Dallas for the ...
Read More
Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

KANSAS CITY, Missouri - Sifted, the trailblazer in Logistics Intelligence™ is proud to announce that Caleb Nelson, ...
Read More
Meet Sifted at LINK 2024

Meet Sifted at LINK 2024

At the end of February, the top supply chain leaders from some of the nation’s largest retailers will converge in ...
Read More
Parcel Carrier Comparison Guide

Parcel Carrier Comparison Guide

In the intricate landscape of parcel shipping today, shippers navigate a complex web of carriers, each with its ...
Read More
Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon took the supply chain world by storm in 2023. They announced Amazon Shipping, a FedEx and UPS competitor ...
Read More
2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

Over the last few years, soaring shipping costs, unpredictable rate hikes, and a challenging logistical landscape ...
Read More
Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Kansas City, Mo – Sifted, a leader in Logistics Intelligence, has been recognized as a 2023 Top Tech Startup by ...
Read More
11/27/23 Parcel News Update

11/27/23 Parcel News Update

1. Amazon’s Volumes Surpass FedEx and UPS Amazon delivered more parcels in 2022 than UPS, according to internal ...
Read More
11/20/23 Parcel News Update

11/20/23 Parcel News Update

1. USPS Announces Tentative Rate Increases for 2024 The United States Postal Service has announced rate increases ...
Read More
11/13/23 Parcel News Update

11/13/23 Parcel News Update

1. Experts Share Attention-Grabbing Items from 2024 GRIs Supply Chain Dive interviewed industry experts, including ...
Read More
2023 Holiday Shipping Deadlines

2023 Holiday Shipping Deadlines

It’s the most wonderful time of the year? It will be if your customers receive their orders on time. The major ...
Read More

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Are you an FBM (fulfillment by merchant) Amazon seller?

Check out our Marketplace Intelligence solutions to protect your bottom line.

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Seller Insights
Measure and monitor with confidence.

Sales Visualization
Shed new light on your sales data.

Fee Analyzer
Understand the impact of ever-changing FBA fees.

FBA Audit & Recovery
Secure money you’re owed from Amazon.

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Thought Leaders
Meet the people behind the technology

Guides
Download free reports and expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Logistics Intelligence
For parcel shippers

Marketplace Intelligence
For Amazon FBA sellers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON Marketplace Intelligence

Not sure if you have an account? Email [email protected].