How Artificial Intelligence (AI) is Transforming Last Mile Delivery

by | Jun 24, 2021 | Blog, Industry Insights

How Artificial Intelligence (AI) is Transforming Last Mile Delivery

Last mile delivery is one of the most important and growing innovations in the supply chain. Customers are now focusing on how efficiently their deliveries are made at the lowest cost possible. Transparency and AI have revolutionized the last mile delivery. This has improved the productivity of businesses through efficiency, advanced customer satisfaction, cost reduction, and most importantly, enhancing eCommerce transactions.

Previously, businesses were only interested in the automation transaction process, but continuous competition and customer demands resulted in a more streamlined last mile delivery. AI or machine learning evaluates big data possible solutions by extensively and intelligently using algorithms with the objective of generating an optimum solution to a specific problem. Following are ways in which AI is revolutionizing last mile delivery.

Efficient Route Deliveries

To efficiently meet growing customer expectations, an optimum delivery route for any courier service is a must. This, however, may come at an extra cost if efficient strategies are not put in place to address it. The business has now turned to AI solutions that use algorithms; it provides an optimum number of fleets that can be used in a certain delivery using the shortest route possible. The system does not stop there; with time, it can learn to use the historical data fed in the system to meet the maximum delivery window.

With AI, all the last mile solutions are optimized, making the logistics more efficient and running at a low cost. Also, it results in more optimal utilization of last mile resources with an improved customer experience. With the implementation of powerful analytics from machine learning technology, businesses have seen their business transforming because it is now possible to predict future trends quickly. A cost-benefit analysis is then initiated to provide the most efficient way to deliver the client’s packages.

Streamlining Business Processes

AI utilizes historical data in giving recommendations on the best solution to a particular scenario. In last mile delivery, AI is useful in classifying the most optimum carrier based on the right balance of operations and the costs associated with the delivery. The algorithm runs throughout the available carrier, and a decision is made based on the cheapest carrier. Businesses can now interact with multi-carrier based on the AI-based decision in streamlining their businesses at the lowest cost possible.

AI and Customer Satisfaction

AI brings more carriers together to a single destination; this gives that customer exposure to a more extended cart where they can explore various options. Automated delivery shipping software provides a customer with the freedom to control their deliveries. Using tracking solutions, they can track their deliveries throughout the last mile delivery process. This develops a sense of trust from the customer, and they are likely to become loyal to the company.

Using predictive analysis, AI can develop customer patterns and offer solutions based on their historical purchases and interaction with the system. The system can give an improvement to customer deliveries through running an algorithm that puts all possible solutions and futuristics based on customer behavior which is important in providing suggestions to the customers on their next delivery. Elite EXTRA is an advanced dispatch delivery management system that helps courier businesses deliver faster and more efficiently to the last mile. If you are looking to improve your delivery process, please visit us at

Colton Ward

Colton Ward


Colton Ward is our Strategic Marketing Coordinator at Elite EXTRA. Unofficially, he also likes to call himself the company's "Marketing Video Producer" so he can claim the title: "MVP". On a typical work day, you can find him coordinating product and brand marketing efforts, working on Elite EXTRA's next video, or building out the company's website. When not at work, he enjoys boating and skiing his way around Wisconsin's beautiful lakes!

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