Technology is Remaking Last-Mile Delivery Fleets Right When They're Needed Most

The recent economic disruptions that have come along with the coronavirus (COVID-19) pandemic have revealed quite a few weaknesses in the systems that make our globalized economy possible. One of those weaknesses is just how sensitive to minor delays and product shortages our major supply chains are. And another is how critical our last-mile delivery infrastructure is - especially when it's the only thing keeping economies afloat.

The problem is, the basic components of our last-mile delivery infrastructure - trucks and other freight-carrying vehicle fleets - haven't changed all that much in almost a century. They still rely on technologies that evolved during the industrial revolution, with only incremental improvements made along the way. And within major economies like the US, Canada, and Australia, there's a growing shortage of workers that is threatening to bring major vehicle fleets to a halt unless something changes.

The good news is that various technologies are making their way into last-mile delivery fleets that are making them more efficient and more resilient against equipment failures, and that will eventually free them from their current labor shortages. Here's a look at what's happening and how technology is rescuing a critical industry that serves as the arteries of the 21st-century economy.

Tracking and Telematics

The first type of technology that's having a big impact on shipping and delivery fleets worldwide has been the development of tracking and telematics systems. These sophisticated feedback systems allow fleet managers to maintain a real-time view of how their vehicles and drivers are performing. And that allows them to devise proactive maintenance schedules based on real-world data that keeps vehicles on the roads for a greater portion of the time. It also helps to assure the safe operation of vehicles by making sure that drivers only work for appropriate shifts and have enough downtime to rest in between them.

And the benefits aren't just limited to fleet operators. The very same tracking and telematics technology are being put to work in more customer-facing ways as well. The most notable example comes from the eCommerce giant Amazon. They've built up their last-mile delivery infrastructure over the past few years, and it includes the heavy use of fleet tracking technology. As a result, customers can track their deliveries on a map in real-time, which is a first-of-its-kind feature that many expect to become more commonplace in the future.

Electric and Zero-Emission Vehicles

Another major contribution that technology is making to shipping and delivery fleets is that it's providing fleet operators with some options beyond their traditional diesel-powered vehicles. Right now, fuel costs make up a big part of the overhead of many last-mile logistics firms. According to Fuel Card Report, these firms overwhelmingly opt for fleet card accounts to achieve savings on those costs, but even under the best of circumstances, the costs are still high.

But now, a variety of natural-gas-powered and other reduced emission vehicles are offering a cleaner, cheaper alternative. They've been gaining traction in recent years as municipalities start to mandate stricter pollution controls for heavy vehicles, and as natural gas has emerged as a cheaper alternative to traditional petroleum-based fuels. And as of this year, automakers like Tesla are beginning to roll out all-electric heavy vehicles which will drive overhead down even further along with providing even greater environmental benefits.

Autonomous Vehicles

The last - and most consequential - technology that's remaking overland delivery fleets is the continuing advance of autonomous vehicle technology. This July, autonomous truck designer TuSimple announced the beginnings of a fully-automated freight network spanning the US southwest. As a part of their plans, they also indicated that they expect to expand their routes to reach every major American city by the end of 2024.

And TuSimple's not alone. Autonomous vehicle companies like Google's Waymo have started getting into the act, too. Earlier this year, they announced a partnership with logistics giant UPS to begin deliveries with their existing fleet of autonomous light vehicles in the Phoenix, Arizona area. The two firms expect the tie-up to grow to cover an ever-expanding delivery map - with the ultimate goal of creating a nationwide network to facilitate the movement of packages between UPS's sorting centers.

A Bright Future

The many ways that technology is revolutionizing critical last-mile delivery and fleet infrastructure couldn't have come at a better time. As fleet operators and logistics firms work to accommodate the surge in demand brought on by the coronavirus pandemic, they're doing it at a time where they have more operational visibility than ever. And as the surge in demand accelerates the replacement cycle of vehicles in their inventory, they'll have more efficient and effective replacements available to choose from. Altogether, it's a picture of an industry being remade by technology - and one for which the help could not have come at a more opportune time.