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We examine how six British last-mile players are positioning the UK at the forefront of a sustainable cargo revolution that just needs government support to go full-force. Zedify, EAV, Pashley, Finmile, Fernhay and Delivery Mates are some of the major innovators in this space that are driving this movement forward. “It’s exciting seeing the innovation coming out of UK businesses, from vehicle OEMs to logistics providers, dedicated to transforming this market and improving our urban spaces for everyone," says Mark Urbanowski, Principal Engineer at WMG, University of Warwick. Mark is organising the UK’s only in-person micromobility dedicated event at the University of Warwick this September where attendees can see the newest models & tech up close. Read more: https://lnkd.in/eMdPnh6j

There are a lot of articles lately that highlight the increasing importance of delivery experience as part of the purchasing decision - but what can you actually do to improve the delivery experience? 🌟 Incentivize drivers: Motivate drivers to delight customers, not just focus on efficiency. Offer bonuses for exceptional performance, flexible schedules, and recognition programs for top-performing drivers. 📲 Get the technology right: Develop and implement technology that enhances the complete delivery experience, minimizing friction, especially in handling returns. 🏡 Move it in-house: Follow the example of HelloFresh by bringing delivery operations in-house to have full control over the experience and branding. Read more: https://lnkd.in/e3Nr2t29 What else are you doing to delight customers?

M&A Outlook for 2024 in Logistics and Transportation TL;DR: The mergers and acquisitions landscape in logistics and transportation took a dip in 2023, but according to a recent McKinsey report, 2024 could see a resurgence. While valuations remain high and the market outlook is still uncertain, strategic investors with ample resources are eyeing opportunities as the market stabilizes. Key insights from the report: 📉 Valuations Adjusting: Company valuations are expected to decline as weak freight markets persist and logistics companies exhaust cash reserves. This environment creates attractive opportunities for buyers. 💰 Substantial Investor Funds: Strategic and financial investors are sitting on significant reserves, poised to invest when valuations align with historical levels, and strategies to create value are clarified. 🌐 Notable Recent Deals: CMA CGM recently closed a €4.85 billion acquisition of Bolloré Logistics, demonstrating that substantial deals are still happening. GXO Logistics’ successful bid for Wincanton also reflects continuing interest in strategic acquisitions. 🚀 2024 Outlook: While 2023 saw M&A activity return to pre-pandemic levels after a surge during COVID-19, the coming year is expected to offer opportunities for strategic players. As logistics providers look to expand their value propositions or geographic coverage, like CMA CGM’s freight forwarding expansions or Maersk’s acquisitions in North America, more deals should be expected. Will 2024 surpass last year’s M&A activity? With cash-rich buyers waiting to invest and strategic ambitions aligned, we’re excited to see what lies ahead!

Getir, a prominent grocery courier firm, is exiting the UK, Germany, the Netherlands, and the US markets to refocus on its home market in Turkey. This strategic shift is a response to fierce competition and a decline in demand for rapid home delivery services, a trend exacerbated by the cost of living crisis and rising operational costs. For the logistics sector, Getir's withdrawal signifies a cooling off of the once-booming quick commerce sector and highlights the challenges facing delivery companies in sustaining the rapid growth experienced during the pandemic. It underscores the need for delivery services to adapt to a more competitive and cost-sensitive market environment, where partnerships with supermarkets and diversification of services are becoming more common strategies among the remaining players. This scenario stresses the importance of efficiency, strategic market selection, and possibly, a shift towards slower, more cost-effective delivery models to remain viable in the long term.

Since the rise of Uber, Deliveroo and others, lots of more traditional carriers have been considering switching to a gig network, and the benefits are quite obvious: 💷 Reduced Costs: You can save on labor costs as delivery riders are only paid for the work they do. It means you don't pay for the time when they aren't delivering (the ethics of this are still an ongoing debate). 📈 Scalability: You can more easily scale the workforce up or down based on demand without the financial and legal implications of hiring and firing traditional employees. But there are quite a few downsides to consider: 🎮 Lack of Control: You have less control over gig workers compared to traditional employees, which can lead to inconsistencies in service quality and reliability. 🎓 Training and Integration: Onboarding gig workers efficiently can be challenging, as ongoing training and integration into company culture are limited. ⚖ Legal and Regulatory Risks: Classifying workers as independent contractors is coming under increasing scrutiny and legal challenges, which can lead to costly lawsuits. © Brand Reputation: There is a higher chance of poor customer experience caused by less trained or inconsistent gig workers can negatively impact your reputation. Is this something you are considering for your company?

Automated routing and dispatching are essential in 2024 The benefits of embracing automated routing and dispatching are compelling and can lead to transformative improvements in efficiency and service quality: 🏎 Optimized Routes: Automated systems leverage algorithms to determine the most efficient paths, factoring in real-time variables such as traffic and weather, which saves time and reduces fuel consumption. Increased Productivity: Automation allows for more effective allocation of resources, maximizing driver utilization without risking burnout, thus leading to a higher number of successful deliveries or service calls. 🤠 Enhanced Customer Satisfaction: With features like real-time tracking and accurate delivery predictions, customers stay informed and satisfied, decreasing the need for service calls. Cost Savings: The reduction in fuel usage, vehicle maintenance expenses, and enhanced driver productivity often offsets the initial costs of automation technology. 📊 Data-Driven Insights: The data collected by automated systems support continuous improvement and informed decision-making, allowing for real-time adjustments and strategic planning. Despite all of this, many smaller last-mile carriers are reluctant to automate their routing and dispatching because of the daunting prospect of training staff on new systems, concerns over the loss of human oversight in decision-making, and apprehension about the cost of new technology. Many that do make the leap are left frustrated that off the shelf software isn't customisable enough to accommodate their business rules. This is where heySimulate comes in - if you are a small carrier considering automating your routing and dispatching come have a chat with us and we can help you to create a customised solution!

The recent collapse of the Francis Scott Key bridge in Baltimore starkly reminds us of the importance of contingency planning in logistics. This event halted operations at a key port and impacted businesses from shipping to coal exports, prompting a quick pivot to alternative routes and methods. This situation highlights a clear message for logistics and supply chain professionals: flexibility and a solid emergency playbook are crucial. Companies like Amazon and Consol Energy, affected by the shutdown, underscore the need to adapt swiftly to keep operations running smoothly. From a smaller scale view - it's a reminder to be prepared for any curveballs. A well-thought-out contingency plan is more than just a safety net; it's a critical component of modern logistics resilience. This is where we think simulations can really help to both anticipate risks and come up with varied contingency plans. https://lnkd.in/g9fU6rvu

🚚💨 Same-Day Delivery: From nice to have to essential From a retailer perspective, the landscape of same-day delivery has dramatically shifted. What was once a unique selling point has now evolved into a fundamental expectation. 96% of them have been offering it for over a year, with nearly two-thirds pushing past the three-year mark. But as we delve deeper, it becomes clear that the long-term success of same-day delivery hinges on its return on investment. The upsides? They're tangible and impactful: a surge in revenue, an uptick in revenue per order, increased net sales, a boost in repeat purchases, and notably higher conversion rates. Yet, the journey isn't without its hurdles. Operating costs have seen a modest climb (below 20%) for 39% of companies, while the remainder grapple with a steeper rise (over 20%). To offset the increased operating costs, tactics have varied, from tweaking product pricing, directly imposing additional same-day delivery charges, to weaving same-day delivery into loyalty programs as an exclusive benefit. For carriers, the message is clear: same-day delivery is not an option but an imperative, and the focus should be on how do we do this efficiently rather than whether we should offer it. Check out the full report from Roadie here: https://lnkd.in/erSS9Qtb

🌱 Driving Change in Urban Logistics: La Poste Groupe's Bold Investments Amidst the complex challenges facing the logistics sector, most companies have been pulling back and focused on cost cutting. La Poste Groupe stands out for its forward-thinking approach to urban logistics and sustainability. In 2022, they've pledged €700m towards transforming urban logistics. This includes €500m in urban logistics hubs and an additional €200m in city center logistics locations. It’s about more than just enhancing efficiency; it’s a robust push towards decarbonizing the last mile. By 2025, La Poste Groupe aims for 100% decarbonized deliveries in 350 European cities, a move set to significantly reduce emissions and traffic within urban areas. Why is this significant? Despite facing the trials of high inflation, rising interest rates, and a slowdown in consumer spending which notably impacted e-commerce and international parcel volumes, La Poste Groupe not only navigated these turbulent waters but emerged with some great results. Their strategic model proved robust, achieving a revenue increase to €34.1bn, with an attributable net profit of €514m, and notably, a 5% reduction in GHG emissions. As we navigate the current economic landscape, La Poste Groupe’s strategy provides a blueprint. Showcasing the power of strategic investment in driving meaningful change, particularly in sectors as pivotal as logistics. The future is green, and with the right investments, logistics can lead the way in making our urban environments more sustainable and efficient.