Last-mile delivery is the cornerstone of many industries, including e-commerce, which has surged in popularity with local consumers in recent years. According to Straits Research, the global last-mile market was valued at $161.2 billion and is expected to reach $373.92 billion by 2033. While it is efficient, cost-effective, and convenient for consumers and retailers, last-mile businesses still face a plethora of challenges in South Africa, where unique economic, social, and infrastructural influences abound.
Congested cities, poorly maintained roads
South Africa is estimated to have the tenth longest road network globally, with approximately 750,000 km of roads stretching across nine provinces. In major cities such as Johannesburg, Pretoria, and Cape Town, last-mile delivery drivers face daily traffic congestion and road infrastructure challenges. Navigating traffic in and out of central business districts, especially during peak hours, can significantly delay drivers with multiple stops, leaving little room for flexibility.
According to the INRIX 2024 Global Traffic Scorecard, South African cities have some of the most congested roads in the world, with Cape Town motorists losing 94 hours in traffic – the ninth worst in the world. Johannesburg, in 31st place, saw residents lose 55 hours. “In addition to lost time, negative externalities like freight delay, inflationary pressure and environmental impact are generally exacerbated due to traffic congestion,” said the report. While the report did not measure these factors, INROX notes they “decrease our quality of life.”
The challenges shift outside urban centres. In informal settlements or rural areas, unreliable addressing systems often complicate deliveries. Even GPS systems may fail, leading to delays, frustration for recipients, and disruptions to delivery schedules. These hurdles highlight the complexities of ensuring efficient last-mile delivery across diverse environments.
The advent of sophisticated GPS systems has reduced issues with poor road signage, but road infrastructure remains a significant challenge for delivery companies. Potholes and poorly maintained roads risk damaging vehicles and increase the likelihood of delayed deliveries.
“While South Africa’s unique challenges in last-mile delivery are undeniable, we see them as opportunities to innovate and adapt. By embracing advanced technology like route optimisation and studying agile delivery methods, we’re overcoming obstacles and driving greater efficiency and reliability,” commented Damian Velayadum, Group Financial Director at Fastway Couriers.
What can last-mile providers do?
Route optimisation software offers a powerful solution for navigating heavy traffic. It enables drivers to plan more efficient routes while providing benefits like fuel savings and reduced operational costs. Additionally, deploying compact and agile delivery vehicles like bikes or drones can help ensure packages reach destinations in densely populated areas. Drones, already in use in parts of East Africa to deliver essentials like medicine to remote locations, highlight the potential of such innovations.
Courier companies may need to rethink their approach to address challenges in informal settlements and rural areas. Establishing smaller distribution centres closer to these regions can streamline the delivery process. Furthermore, implementing pick-up points at accessible locations allows recipients to collect parcels conveniently, reducing failed deliveries and providing greater flexibility. By minimising door-to-door deliveries, courier companies can significantly lower costs while improving efficiency2.
Other challenges facing last-mile service providers in SA
South Africa has enjoyed nearly 300 days without load-shedding, significantly boosting productivity and efficiency for businesses nationwide. However, last-mile delivery companies must still prepare for potential disruptions. While depots can rely on backup power solutions to ensure seamless operations during outages, delivery drivers face unique challenges on the road3.
Route optimisation software is indispensable due to increased traffic caused by non-functional traffic lights. By integrating load-shedding schedules into driver apps, service providers can help drivers anticipate disruptions and adjust their routes dynamically. Additionally, implementing driver-specific load-shedding schedules allows for proactive planning, ensuring smoother deliveries despite potential power-related obstacles.
“Our commitment to enhancing flexibility, whether through more innovative infrastructure or strategic distribution, ensures that we remain ahead of the curve in delivering exceptional service to our clients and communities,” concluded Velayadum.
Source
- https://www.engineeringnews.co.za/article/drones-deliver-medicine-mail-money-and-spare-parts-to-hardest-to-reach-locations-2024-07-15
- https://seamaster.co.za/last-mile-delivery/
- https://cappersonnel.co.za/how-to-manage-your-business-during-load-shedding
