Review: decisive drivers contributing toward modern last mile delivery

A research article by Sharma et al. investigates the drivers of logistics management for Last-Mile Delivery (LMD) in a contemporary business situation. It refers to the 21st century’s innovative and revolutionary changes in the logistics sector. It explains advanced technology and the digital revolution as driving forces in the modern logistics industry.

This study adopts a qualitative approach and presents a conceptual model developed through expert discussion and Interpretive Structural Modelling (ISM) for formulating the proposed model of modern logistics in the era of Industry 4.0 (I4.0). According to ISM and MICMAC analysis, cost-effectiveness and green technology efforts are independent driving variables for efficient and green logistics management. It offers a road map for organizing the drivers in the logistics 4.0 conceptual framework.

The scope of work is restricted to only operational logistics management aspects for smooth LMD. This study is confined to only LMD operations and technological advancements in logistics. The research provides valid factors for increasing the LMD efficiency of logistics networks. The importance and relationships between the various drivers are discussed and analyzed to increase the supply chain’s sustainability and efficiency.

Strategic drivers serve as a logistics and supply chain management company for its customers. It frequently owns and maintains distribution centers and sources of transportation. These combine the resources of manufacturers, retailers, and third-party logistics providers to provide a system-wide improvement in logistics management. They mostly give organizational knowledge to manage LMD activities.

Global competitiveness aided in establishing a worldwide network of industrial operations, suggesting that producers and consumers are often geographically separated, necessitating complicated transportation services. Manufacturers and merchants are increasingly focusing on their primary business (their core competencies) and subcontracting areas, such as logistics, where they have less competence. The purpose is to promote the respective production and distribution specializations. Improved use of transport assets leads to cost-effectiveness
and cost optimization.

Logistics management techniques improve transportation asset utilization by balancing the demands of numerous client shippers across transportation and distribution operations, locations, Omni channel commerce, and so on. Managerial and information technology skills can lead to cost, reliability, and productivity advantages in supply chain management. This helps to achieve customer satisfaction and create a path for business growth. The study also presents the approach of adopting green initiatives initially for a sustainable approach towards global logistics network development. The model helps provide a more calculative and decisive approach to adopting I4.0 technological solutions in the logistics sector.

Source: Sharma, V. P., Prakash, S., Singh, R., & Brar, A. Decisive Drivers Contributing towards Modern Last Mile Delivery Operations: A Qualitative Analysis using ISM International Journal of Mathematical, Engineering, and Management Sciences Vol. 8, No. 6, 1188-1205, 2023

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