Last mile in a pandemic: opportunities for improvement offered by logistics - Authorized Movers

Last mile in a pandemic: opportunities for improvement offered by logistics

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By: Janet Hernández Kong

Jul 29, 2021

Due to the pandemic, many companies are more aware of the importance of using software to make logistics processes more efficient.

There are several companies that saw their sales skyrocket during the pandemic, causing several inconveniences at first. Few of them were digitized or ready for the increased demands.

They had previously screened it from the Santiago Chamber of Commerce (CCS), where a 2020 report found that for that period, sales would grow by 20%. It should be remembered that over the past year the use of digital payments and e-commerce through mobile devices has increased.

As Nicolás Kunstmann, co-founder of Drivin – a company focused on intelligent transport management – explains, “retail sales climbed more than 100% from May 2020 to May 2021. There were many entities, stores and companies that have sold all of their products in person, but due to the pandemic they have had to migrate their sales during certain periods to a fully online format ”.

This forced stores to establish themselves as e-commerce without being fully prepared, as this required payment gateways and mechanisms to manage inventory, among other things.

All of this started to be implemented amid the change in consumer buying behavior. “We get used to the products that arrive on time and in the right way, so we are informed of the delivery commitments of the different stores and choose the ones that offer greater certainty of meeting the deadlines,” Kunstmann said.

Precisely in this article is the big challenge. Companies are expected to satisfy consumers according to their expectations, by respecting the timeframe agreed in the sale.

To improve shipping times, companies have started to consider the use of technology. For Kunstmann, this happened because companies had to change the way they distribute, taking over 100% of shipments, improving key aspects such as the last mile, the last distribution stretch until the product reaches the consumer.

More aware of their use

Companies that, regardless of their size, can implement the software as a service (SaaS) offered by Drivin, which can be activated remotely and at very low cost, are increasingly aware of the importance of the implementation. place of software for making improvements. Kunstmann, for example, admits that when “we were born in 2015 this topic was super unknown, but now with the pandemic it has been placed at the top of the corporate mind.”

Thus, due to the economic crisis, companies have sought to make certain processes more efficient, the logistics area being one of those chosen, because the possibilities for improvement through technology are numerous.

“When I look at the return on investment (ROI) of the projects we manage, they all go 500% upwards,” Kunstmann explains of the profitability for companies to activate this type of tool.

Either way, purchasing behavior is changing, as we have already seen during the pandemic. Virtual shopping will be complemented by face-to-face shopping, encouraging companies to develop and improve their processes, including the supply chain.



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