Global logistics spending is expected to reach $10.6 trillion in 2020, with transportation accounting for the majority at 70%, Frost & Sullivan’s recent analysis titled “Urban Logistics Opportunities—Last-Mile Innovation” revealed, “Saudi gazette” informs.
Emerging technologies such as cloud computing, big data, and crowdsourcing, coupled with an influx of tech-savvy start-ups, are unbundling the value chain and transforming delivery models. About two fifth of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities. Frost & Sullivan predicts the market will rapidly move toward mobile freight brokerage-type, on-demand deliveries and autonomous technology, such as the use of drones and delivery bots which are set to solve the last mile delivery challenge by being more cost effective to end users with lesser regulatory mandates.