1. Mahindra Logiquest 2018 – NMIMS
The Brain Trust
Surabhi Deshmukh
Aneesh Fernandes
LAST MILE DELIVERY!!!

2. Current Standing
Solutions /
Opportunities
Challenges

3. THE REASON FOR US BEING HERE……
Retail e-commerce sales in India from 2016 to 2022 (in million U.S. dollars)
GROWTH NUMBERS
Source: Statista 2018
CURRENT SIZE OF THE INDUSTRY 2018
ESTIMATED SIZE OF THE INDUSTRY 2020
28% Revenue growth
US$160 billion
US$215 billion
42% Profit after tax growth
Source: Economic Survey
Source: MLL AR
REVENUES PAST 12 MONTHS ( )
BREAKDOWN OF PERCENTAGE REVENUE FROM OPERATIONS 2018 V/S 2017
% REVENUE BY SEGMENTS
₨ 3416 CRORE
Source: Economic Survey
Source: MLL AR
VISION FOR REVENUE OF MLL BY 2021
₨ 6000 CRORE
SCM BUSINESS
PTS BUSINESS
Source: MLL AR
Source: MLL AR

4. Opportunities for Last Mile Delivery in India
01. Crowdsourcing model
02. Locker System
Focus on challenge: Poor vehicle utilization
Focus on challenge: Poor vehicle utilization, Confusing addresses, failed deliveries
03. Performance Evaluation of Delivery Associates
04. Customer Coordination
Focus on challenge: Confusing addresses, Training of delivery staff
Focus on challenge: Confusing addresses, failed deliveries
05. Dynamic Route Planning
Focus on challenge: Poor vehicle utilization, traffic

5. Current Standing
Solutions /
Opportunities
Challenges

6. Challenges in Last Mile Delivery
Performance Parameter
Factors Responsible
Cost minimization
Fuel consumption
Vehicle operating cost
Total costs per kilometre
Distance travelled per item
Storage and freight forwarding costs
Warehouse costs
Traffic in urban areas
Government regulations
Timely delivery/ availability
No. of deliveries made on time as a percentage of total deliveries
Lack of logistic infrastructure
Confusing addresses
Multi-point distribution in villages
Increasing productivity
No. of deliveries per day
No. of deliveries per route
No. of deliveries made on time
Planned v/s actual no. of stops
On-time pick-up
Poor vehicle utilization
Fleet utilization
Percentage of vehicle capacity used
Percentage of fleet capacity used
Disparity in nature of retail outlets
Inefficient route planning
Improper space utilization
Frictionless delivery
Tracking of consignment
Successful delivery in first trip
Returned consignments
No. of misplaced/ missing consignments
Lack of technological soundness
Thefts
Training and coordination with the delivery staff
Handling ad-hoc requests

7. Understanding the market
Methodology:
Identification of challenges through primary and secondary research
Identification of factors contributing to last mile delivery challenges
Primary research through survey for prioritisation of factors contributing to challenges
Ranking of factors by priority scores assigned to each factor
Pareto analysis by considering no. of times each factor assigned highest priority

8. Primary Research Conclusion:
The main factors to be focussed upon in order to tackle last mile delivery challenges:
Poor vehicle utilization
Confusing addresses
Training of delivery staff

9. Current Standing
Solutions /
Opportunities
Challenges

10. 01. Crowdsourcing model 02. Locker System
Nature of consignments: Small Volume, B2C
Model: Collaboration with local courier services/ India Post
What’s in it for them?
Additional revenue
What’s in it for MLL?
Timely deliveries, Better utilization of vehicles
Recommended implementation:
High density urban areas
Nature of consignments: Small-Medium Volume, B2C
Model: Lockers in central distribution system
What’s in it for customers?
Timely deliveries, Discount benefit
What’s in it for MLL?
Improved efficiency and performance
Recommended implementation:
High density regions in cities
MOST EFFICIENT FORM OF DELIVERY
Deliveries through fixed spots fastens the entire last mile delivery process. 10 times more deliveries per person in the same day are possible
STORE THE SHIPMENT FOR A FEW DAYS
The Locker System terminal can store parcels safe and secure for few days, until the customer finds time to pick-up the same
REDUCING OPERATIONAL TIME & COSTS
The Locker System helps in reducing operation time and cost while streamlining the last mile delivery process in efficient manner
REDUCE RETURNS & RE-ATTEMPT
The Locker System provides the fastest way to return parcels. Once the return by customer is initiated, all they need to do is walk up to the chosen Locker terminal and drop the parcel. No more coordination required from either side
FASTER COD SETTLEMENT
The Locker System provides for multiple electronic payment options at the terminal which help receive payments faster and reduce your DSO.

11. 04. Customer Coordination
03. Performance Evaluation of Delivery Associates
04. Customer Coordination
Category A/B/C Allocation of regions and routes
Training
Performance record/ Rankings and Reviews by customers
Experience
Preferred timing communication one day prior to scheduled delivery
Communication details of the driver
Reviews and ranking for delivery experience
Benefits
Better efficiency
Better customer reviews
Better utilization of incentive schemes
Challenges
Complexity in algorithm
Internal conflicts
Benefits
Reduced failed delivery attempts
Reduced time wastage due to address confusion
Challenges
Customer cooperation cannot be guaranteed
Complexity in back-end function

12. 05. Dynamic Route Planning
Recommendations for development in existing system:
Integration with GPS systems
Traffic consideration
Integration with customer scheduled delivery preferences
Re-routing/ Route breaking can be avoided
Integration with vehicle telematics/ tracking system
Real-time coordination and transparency
Benefits
Improved productivity
Timely deliveries
Challenges
Complexity in algorithm
Customer coordination
Cooperation from 3PLs

13. Evaluation of Proposed Solutions
Crowdsourcing Model
Locker System
Performance Evaluation of DAs
Customer Coordination
Dynamic Route Planning
Cost minimization -
Timely delivery/ availability
Productivity
Fleet utilization
Frictionless delivery
Top-line improvement
Bottom-line improvement
Beneficial
May or may not be beneficial
Not beneficial

14. Thank You!