SCD: We’re entering the age of first-mile reinvention

SUPPLY CHAIN DIVE reports:

(Lauren Acoba is the VP of research at supply chain intelligence company Zero100. All opinions are the author’s own.)

Over the past decade, most supply chain innovation has focused on last-mile delivery.

The alluring consumer proposition of ‘free and fast’ delivery helped propel online retail to new heights, but it also set the bar incredibly high, forcing businesses to invent creative new delivery methods and glean every last efficiency from their logistics and distribution processes.

Since then, numerous last-mile innovations have fallen by the wayside — from roadside drones to 15-minute grocery deliveries. But for all the creative ideas, running and maintaining an efficient operation remains massively expensive. Just ask Amazon, which is currently investing $5 billion upgrading its U.S. fleet. 

In the context of complex global business operations, last-mile innovations barely move the dial on productivity and profitability. Where we should really be looking is the very start of the supply chain: the first mile. 

Putting first-mile, first

The first mile of the supply chain encompasses everything from product development and lifecycle management to regenerative materials and carbon reduction. By achieving gains in these areas, companies can bolster the entire supply chain by building resilience, decarbonizing and preventing reputational risks before they manifest…

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