Abstract

The last-mile delivery segment is the most expensive component of the supply chain, accounting for approximately 53% of total logistics costs. This is because of inefficiencies such as fragmented routing, lack of real-time tracking, delivery failures, and increasing consumer expectations for same-day or next-day deliveries which are implemented by ecommerce giants like Amazon. This paper presents an innovative approach leveraging AI for route optimization, micro-fulfillment centers, and crowd-sourced delivery models leading to reduction in last-mile costs while at the same time maintaining service quality. By integration of advanced analytics and automation, this solution improves operational efficiency, minimizes delivery lead times, and improves overall supply chain performance due to its heavy revenue contributing towards end o end supply chain.