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Last Mile Delivery Trends for Middle East Companies in 2023

By Chirag Naiknavare 3rd January 2023

E-commerce has been growing steadily in the Middle Eastern region post the pandemic. Factors such as young population, internet penetration and inclination towards mobile shopping have contributed to it. 

As per a report, the market is expected to grow at a CAGR of above 11.5% from 2022-2027 in the Middle East. 

All this has resulted in the growth of last mile delivery companies in the region. Let us look at some trends that are likely to influence this sector in 2023. 

Last Mile Delivery Logistics Explained: Problems & Solutions

Driver Empowerment

Carriers delivering to consumers will be the focus in 2023. In the middle east, driver shortage is not an issue. Though, they have to face a few challenges such as unclear addresses, lack of detailed maps and traffic jams. 

On an average, a driver has to make 33,000 stops in a year. This makes it tough for the drivers to locate the consumer location and deliver the orders. If the drivers are not satisfied and are underproductive, they will not be able to provide a good delivery experience to their consumers. 

This can lead to a loss of trust and can cause a slowdown in business growth. So, more and more companies will focus on empowering the drivers for better performance. 

Sustainability

More and more consumers are becoming conscious of the environment with time. They are more likely to choose delivery companies that have sustainable practices in place. This could be a major factor for the last mile delivery companies in 2023. 

Using electric vehicles can be an active contributor in minimising carbon emissions. Businesses are also likely to incorporate parcel lockers in their last-mile operations in the Middle East.

Parcel lockers can reduce vehicle emissions by 70%, especially in densely populated cities. These are automated parcel devices that act as alternative delivery places for thickly inhabited areas.

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Omnichannel Retailing

For many years retail fulfilment was binary. The consumers had to either order the articles online or purchase them from physical stores. However, things have altered drastically due to omnichannel retailing in the middle east. 

The middle-east region is witnessing a mushrooming growth in omnichannel retail lines. The increased adoption of the internet, greater use of smartphones, and better product selection have resulted in many people opting for omnichannel shopping. 

More than half of the consumers in the middle-east begin their shopping journeys via search engines instead of retail sites. Improvement in omnichannel capabilities allows businesses to improve speed, costs, flexibility, and delivery control.

Using D2C for developing a strong customer base

Consumers these days covet customization and convenience together with greater product selection and price. These things are offered in abundance by the D2C e-commerce model. Apart from manufacturing, brands use this model for controlling and managing various aspects such as marketing, distribution, sales, retail, and customer experience. 

All businesses are adopting the model for getting a clear picture of customer preferences via data insights. This can be leveraged to achieve a strong consumer base with end-to-end and personalized experiences.

FedEx abandons its last-mile delivery robot program | Ars Technica

Robust investments in last-mile delivery solutions with AI

The supply chain and logistics experts have predicted that after 2022, all businesses will concentrate on exploiting the growth opportunities of the future. They will start to graduate from a survival mindset onto a growth mindset. This will also be handy in solving the issues related to one of the more critical components of the supply chain which is last-mile delivery. 

For making the entire last-mile delivery process cost-efficient, and to generate greater revenues from the service, businesses will look to improve their investments in AI-related technologies. With various businesses redefining and rethinking their tech capabilities for improving their competitiveness, we can observe a flurry of investments these days in last-mile delivery logistics solutions.

The better pace of recovery and transition toward normalcy

It is expected that in 2023, the pace of recovery towards normalcy will increase. This also means a greater pace for the last-mile delivery, compared to 2022. Some surveys have concluded that most businesses will return to normal in 2023. 

So, most businesses will also begin taking incremental and dedicated steps toward making their last-mile delivery intelligent and less reliant on human labor. The last-mile delivery processes will become fairer and more responsible in 2023. 

With the last-mile delivery processes going through transformative changes in the year 2023, all companies will need to concentrate on getting things right. Using dispatch management software will be a good tool for optimizing last-mile delivery in the middle-east. 

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Growth in the urban environment

These days more than half of the population lives in urban areas. There are more than 1.5 million people added to the rising global urban population each week. 

Many businesses are responding to this transition by adopting how humans consume the products and by interacting with online shopping for driving growth. The last-mile delivery is a complex and expensive addition to the delivery supply chain without having a proper urban infrastructure that includes alternatives such as droids, couriers, drones, and autonomous ground vehicles. 

The use of robotics makes these deliveries quicker providing better flexibility and reliability in terms of how the products are delivered via smart integrated systems in the middle east.

Greater online shopping

We have observed greater advancements in the field of software engineering for getting better online delivery platforms. The better urban infrastructure and logistics have improved the speed and efficiency of last-mile deliveries in the middle east region.

The advent of the pandemic intensified the trends of online shopping. Due to quick urbanization and good road infrastructure, the middle-east area is perfectly positioned for last-mile delivery solutions. With the hybrid shopping centers moving towards better experience, many areas are reused as fulfillment centers for sales with a greater emphasis on flexibility.

Last Mile Delivery Trends to Look For in 2021 - shipsy

Conclusion

With a rise in e-commerce sales predicted for 2023, you can find consumer spending to be pretty resilient as yet, despite all the inflationary pressure. You can find growth in retail e-commerce sales and this together with resilient consumer spending provide a strong signal that last-mile delivery is on the right path toward normalcy. 

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