Only an Ecosystem Can Solve Last-Mile Gridlock in Package Delivery

(See Exhibit 1.) Because last-mile delivery companies do not directly bear the cost of these externalities, however, they don’t factor them into the cost of doing business. Shipping companies could merge their delivery schedules and map the best routes, and e-commerce companies could offer their cus...

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Bibliographic Details
Published inBCG Insights
Main Authors Konrad von Szczepanski, Wagener, Christian, Mooney, Tim, McDaniel, Lindsey, Orlando, Mathias, Sharp, Lucy
Format Web Resource
LanguageEnglish
Published Boston Boston Consulting Group Boston, MA 24.06.2021
Subjects
Consumers
Coronaviruses
Costs
COVID-19
Customers
Efficiency
Electronic commerce
Packaged goods
Packaging
Pandemics
Participation
Shopping
United States > US
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Summary:(See Exhibit 1.) Because last-mile delivery companies do not directly bear the cost of these externalities, however, they don’t factor them into the cost of doing business. Shipping companies could merge their delivery schedules and map the best routes, and e-commerce companies could offer their customers a much-improved shipping and delivery experience. Giving consumers visibility into their green delivery options would also enable carriers that can demonstrate their environmental credentials to gain market share. A shift by consumers and carriers to OOH delivery would lead to an estimated 66% decline in carrier vehicle miles and a 15% decrease in the cost of each package delivered. * Online retailers.