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Last Mile Delivery for e-Commerce: Challenges, Benefits, and Future
Ilchenko N. B., Kotova M. V.

Ilchenko, Nataliia B., and Kotova, Maryna V. (2020) “Last Mile Delivery for e-Commerce: Challenges, Benefits, and Future.” Business Inform 3:148–154.
https://doi.org/10.32983/2222-4459-2020-3-148-154

Section: Economics of Trade and Services

Article is written in Ukrainian
Downloads/views: 8

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UDC 656.073.5

Abstract:
The article focuses on the study of the essence of the logistics of miles in the supply chain. It is proved that in the midst of the coronavirus pandemic, demand for online orders will increase and, accordingly, the role of logistics of the last mile in the chain of delivery of goods to the final consumer will increase. The main prerequisites for the development of the last mile logistics market in electronic commerce in Ukraine are identified. In the course of the study, it was found that for the organization of logistics of the last mile, the following factors should be taken into account: delivery speed, tracking accuracy, warranty and insurance, convenience, cost and price. It was determined that in the city of Kiev, under quarantine conditions, with increasing demand for food products, logistics of the last mile becomes the most relevant. With the development of technology and competition between enterprises, the consumer expects that the goods will be delivered within a few hours, but in this situation, with increased demand for online orders, the consumer can wait for his order for a few days. The problems that retail chains encounter when completing an order and organizing the delivery of goods by online stores in the pandemic circumstances are considered. It is noted that the service zakaz.ua provided the opportunity to make online purchases on its own platform for such retail chains as Novus, Metro, Auchan, Megamarket, Buffet. The market of postal and courier services in Ukraine is analyzed. The evaluation of the choice of postal logistics operators in the Ukrainian market is carried out and the main characteristics of the courier services are indicated, their advantages and disadvantages are determined. The features of the implementation of crowdsourcing principles in companies providing courier services are analyzed. The prospects for the development of logistics of the last mile in electronic commerce in Ukraine and in the world have been defined. Given the international experience to save human resources in the current situation, it has been proven that the latest technologies for delivering goods to consumers in hard-to-reach places using artificial intelligence can be used.

Keywords: logistics of the last mile, delivery of the last mile, e-commerce, online store, crowdsourcing, postal and courier service, delivery by drones.

Fig.: 1. Tabl.: 1. Bibl.: 12.

Ilchenko Nataliia B. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Trade Business and Logistics, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]
Kotova Maryna V. – Candidate of Sciences (Economics), Senior Lecturer, Department Trade Entrepreneurship and Logistics, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

List of references in article

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Fancello, G., Paddeu, D., and Fadda, P. “Investigating last food mile deliveries: A case study approach to identify needs of food delivery demand“. Research in Transportation Economics, vol. 65 (2017): 56-66. DOI: https://doi.org/10.1016/j.retrec.2017.09.004
Ye, Ch. “Economic Research on the “Last Mile” in E-commerce Logistics System on the Basis of Time and Space“. Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science (LEMCS 2015). 127-132. DOI: https://doi.org/10.2991/lemcs-15.2015.25
Horbenko, O. V., and Karpenko, O. A. “Vplyv elektronnoi torhivli na rozvytok lohistyky «ostannyoi myli» v Ukraini“ [E-commerce Influence on the Development of «Last Mile» Logistics in Ukraine]. Rehionalna ekonomika, no. 3 (2017): 123-132.
“Zvit «Ostannia lanka: kilkisna otsinka vartosti»“ [Report "Last Link: Quantitative Assessment"]. www.cushmanwakefield.com.ua/uk/ostannya-lanka
“Reinventing the supply chain: The future of fulfillment vision study. Confronting logistics challenges in an omnichannel shopping landscape“. www.zebra.com/content/dam/zebra_new_ia/en-us/solutions-verticals/vertical-solutions/retail/vision-study/fulfillment-vision-study-report-en-us.pdf
Curtin, M. “3 Ways Millennials Differ from Generation Z in 2019 Trends. Move over, Millennials; Gen Z is on its way up“. https://www.inc.com/melanie-curtin/3-ways-millennials-differ-from-generation-z-in-2019-trends.html
Metzker, V. “How Crowdsourced Delivery Will Change the Game for Retailers“. https://www.retailsupplychaininsights.com/doc/how-crowdsourced-delivery-will-change-the-game-for-retailers-0001
“Crowdsourcing for Last Mile Success“. https://logisticsviewpoints.com/2018/01/10/crowdsourcing-last-mile-success/
Fatehi, S., and Wagner, M. “Crowdsourcing Last-Mile Deliveries“. https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=3434625
“Obzor ukrainskikh sluzhb dostavki. 10 oktiabria 2018“ [Overview of Ukrainian Delivery Services. October 10, 2018]. www.horoshop.ua/blog/obzor-ukrainskikh-sluzhb-dostavki/
“Obzor sluzhby dostavki v Ukraine. 20.06.2019“ [Overview of the Delivery Service in Ukraine. June 20, 2019]. www.my-master.net.ua/obzor-ukrainskih-sluzhb-dostavki/

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