The last mile in LA
The ongoing e-commerce boom has not triggered a great degree of innovation on last-mile deliveries. Now the potential for improvement in the segment has been recognised and several companies are improving their position in the section.
18 million people live in the greater Los Angeles area, and many of them frequently order goods in the internet. The rapid growth of e-commerce means that an efficient supply chain and the concomitant logistics infrastructure are essential.
The real estate developer Goodman recently acquired an industrial campus in Anaheim CA that is suitable as a hub for last-mile activities. Goodman North America CEO Anthony Rozic says that “the US e-commerce market is continuing to grow at double-digit rates. Companies in the sector depend on running suitable locations for their fulfilment services – so we try to offer them such sites.” The new site, very close to a key interstate highway, covers 4.8 ha and has secure truck-parking bays and plenty of space for manoeuvring. Goodman is converting the building to logistics use and intends to welcome its first tenants in autumn this year.
The tenants will be offered around 12,500 sqm of storage space and 630 sqm of office space, as well as 17 docks in two buildings. Goodman is optimistic also on account of the location’s proximity to other logistics hotspots, such as the port of Long Beach, 37 km away, as well as Los Angeles airport, approximately 48 km away.
Hubs close to city centres are certainly the best way to cope with the flow of goods caused by e-commerce – but the last-mile solution still has to be completed. This usually comes at a rather high price. The consultancy firm McKinsey & Company has estimated that delivery costs for the last mile in the USA come to no less than USD 86 billion a year. The logistics industry therefore has a vital interest in promoting good innovative solutions over the last mile.
A parcel can go anywhere
The new Californian enterprise Boxbot is amongst the latest innovators in this segment, presenting an original new delivery system in June.
The company promises solutions for missed deliveries, stolen parcels and tedious returns. The focus is on small automated local hubs close to residential areas. These receive delivery calls from conventional vans or self-propelled electric vehicles. Because the hubs are served several times a day, delivery routes can be adapted to customer requirements. A person who is expecting an urgent parcel, for example, but is not at home, can order the autonomous delivery vehicle mandated with supplying the goods to come to any place where he can take delivery, for example to a restaurant.
Boxbot co-founder and CEO Austin Oehlerking says that “we can process more parcels in less time and in greater accordance with customers’ wishes by using new technologies.” Co-founder and CTO Mark Godwin sees automation at the heart of Boxbot. “Automation’s been missing from the last mile so far. Boxbot’s offer focuses on delivering in 24 hours, which should become cheaper as a result of our efforts.”
Boxbot has entered into a partnership with Ontrac for implementation steps. The parcel logistics company operates in the west of the USA, in a catchment area with approximately 65 million inhabitants. It is set to promote the spread of Boxbot technologies.
