Transcript
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Hi, everyone.
My name is Mehmood Saleem, and I work as a senior program manager in the tech sector.
I will be speaking on the topic of revolutionizing last mile delivery,
the power of cloud computing and IoT.
This talk is structured into three parts.
The first part goes around introduction and importance of last mile, the bot.
The second part presents the challenges in the sector and the role of cloud
and IoT in parts two, three, and four on the slide, the so what.
The third part is around real world use cases and industry examples.
Followed by a teaser into how the next five years in the space would look like.
Finally, the closing, the so what.
The obvious question that pops up is, what is last mile?
So last mile is the last leg of the journey of a parcel or shipment to you.
The object started from a vendor, went through a warehouse, probably
in a semi urban area, reached a final mile warehouse, and then was
dispatched to the ultimate customer, i.
e.
you.
This is the customer facing part of the journey in the supply chain of e commerce.
Another reason for the importance of LastMile is the fact that 53 percent of
total shipping costs stem from LastMile, primarily rider driver wages, fuel,
insurance, and maintenance of vehicles.
Purpose of this talk is to elucidate how IoT and cloud computing are
transforming LastMile delivery through real time tracking, predictive
analytics, and smart logistics.
Coming to challenges in the last mile delivery space.
Firstly, the high cost inefficiency.
Last mile logistics are expensive due to fuel costs, traffic
congestion, and failed deliveries.
Secondly, lack of visibility.
Traditional logistics lack real time tracking, leading
to poor delivery accuracy.
And finally, customer expectations.
The customer is never happy.
Consumers expect fast, reliable, and transparent deliveries, a
challenge for the logistic providers.
Amazon Same Day Delivery has set the bar very high for other companies to match.
Customer expectations are growing fast around free and fast deliveries.
Role of Cloud Computing in Last Mile Logistics So, Cloud Computing
allows real time data processing.
Cloud platforms are able to process large volumes of logistics data in real time,
enabling accurate tracking and routing.
Cloud based algorithms can analyze traffic conditions, delivery windows, and
package sizes in real time to calculate the most efficient delivery routes,
minimizing delivery time and costs.
Secondly, predictive analytics utilizes machine learning algorithms
to forecast demand, optimize delivery routes, and predict delivery time.
Thirdly, scalable infrastructure.
Cloud solutions scale effortlessly during peak periods.
For example, Black Friday, Prime Day, allowing even smaller
companies to flex their operations during these peak periods.
Example of this would be AWS, Amazon Web Services, which powers Amazon's last
mile logistics by optimizing delivery routes and inventory management.
Now coming to the impact of IoT on smart logistics.
So firstly, real time tracking and monitoring.
IoT devices, for example, GPS trackers, RFID tags, provide real
time location data, and also provide condition monitoring, for example,
for temperature sensitive products.
Secondly, smart warehousing.
IoT enabled warehouses use connected sensors and automated picking systems
for faster order fulfillment, allowing for a better last mile operation.
Thirdly, fleet management.
IoT devices in delivery vehicles monitor fuel consumption, driver
behavior, and vehicle maintenance.
Reducing operational costs.
An example of this from the industry would be DHL's IoT enabled delivery vehicles,
which reduce fuel costs by 15 percent using real time route optimization.
Coming to real world use cases and industry examples.
Firstly, Amazon.
Amazon combines AWS Cloud Analytics and IoT devices for real time
route optimization and delivery prediction and was able to
reduce its delivery times by 25%.
Another example is UPS.
which uses Orion, on road integrated optimization and navigation, powered
by cloud computing and IoT, which saved 10 million gallons of fuel
annually and is still doing so.
Finally, Alibaba's Kyrio network, which leverages IoT enabled smart
lockers and cloud logistics for contactless last mile delivery.
Now, as promised in the early part of the presentation, what is coming in the
next five years in the last mile space?
Two technologies will change the landscape of last mile delivery till 2030.
One being drones and the second being autonomous vehicles.
Technological and regulatory constraints have held back the two technologies
till date, but that is changing fast and will continue doing so up till 2030.
On one hand, drones have seen growing adoption by FAA, the Federal
Aviation Administration in the U. S., and the EU is looking to work
on drone fleet legislation as well.
On the other hand, in AVs, the U. S., Europe, China, and Japan are at the
forefront of AV innovation, and regulatory environments are being created that
encourage safe development and testing.
For drones, Amazon is working on MK30, and Alibaba has started drone delivery
for selected products in Shanghai.
For AVs, mobility companies are working on AVs, and one use case being researched
and trialed is last mile delivery.
In five years, cloud and IoT will be the enablers that would drive mass adoption.
You would see a swarm of drones in the air delivering shipments and
AVs delivering without drivers.
Both these technologies would drive a reduction in A, cost per delivery
because no humans would be involved.
B, delivery times being because you would be able to bypass urban
congestion and traffic jams.
Thirdly, less moving parts would mean less carbon footprint and more Uh,
environmentally friendly deliveries.
Now coming to some final thoughts.
The key takeaway from the talk is that cloud computing and IoT are
revolutionizing last mile delivery by enhancing visibility, reducing costs,
and meeting customer expectations.
The future outlook of last mile deliveries looks bright.
Furthermore, integration of AI and 5G with cloud and IoT will
further optimize this space.
Closing statement would be that by embracing cloud computing and IoT,
Businesses can transform last mile delivery from a cost center to a
significant competitive advantage.
Thanks for being a patient audience.
I hope you are as excited as me about the future of last mile logistics.
Thank you