How technology is redefining the last mile ecosystem

Strong business partnerships can help stakeholders unlock value and competitiveness in automation. By Bernd Heid and Christoph Klink of McKinsey & Company

One of the best parts of the e-commerce journey is the moment that you finally get your hands on that much-anticipated item you ordered. As technology increases customers’ expectations of what they can have, it is also widening their options for how those products get delivered. Customers are not only increasingly demanding, but also extremely cost sensitive, and have a very low willingness to pay for greater convenience. In the medium term, autonomous delivery vehicles (ADVs) – think of a self-driving parcel locker – will be the dominant technology in last-mile delivery, with the power to both give consumers greater delivery convenience at lower cost, and significantly alter the competitive landscape….

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