A recent Scandit study points out that southern European countries, including Spain, are at the tail end of technology investment to deploy new capabilities and services in the last mile.
There is no doubt that the pandemic has brought a series of changes in consumer demands, many of which have come to stay. One of them is the growing adoption of electronic commerce as an option to make purchases, which, as a consequence, has led European delivery companies to focus great efforts on innovation to respond to new needs.
However, a recent report by Scandit, a firm specialized in data capture and augmented reality solutions, has highlighted the differences in technological investment according to the geographical location of the companies in last Mille, with those in southern Europe, Spain, Italy and Portugal, the ones that invest the least.
The study, for which 118 companies from the last mile logistics and postal sector in Europe and North America were counted, points out that 14.3% of European firms use new services such as Pick Up & Drop Off, while 20.6% do so to innovation.
These are figures that differ from those provided by North American companies, which, according to the report, only 5.9% prioritize new services and place greater focus on responding to new demands. Likewise, European last-mile logistics companies are also more committed to investing in new technologies such as augmented reality, 69.2% compared to 58.8% in North America.
But these are not the only investment differences based on geographic location. The study also highlights that, while companies in Eastern Europe and the Nordic countries focus their focus on adding new applications and functions, according to 43.8% of the surveyed firms, and 18.8% do so on technology to support New servicesIn Western Europe, technology investment is more balanced. In this region, the investment is divided, in 37% of the cases, in advances for delivery applications, 25.9% in contactless processes, and 18.5% in the offer of new services.
In this sense, the study perceives this region as more open to the deployment of new capabilities and services. Thus, 18.5% of companies in the sector in Western Europe plan to invest in new applications and functions compared to 5% of those in the south of the region, as 60% prioritize improving their current delivery application.
Augmented reality for the last mile
If there is a technology that is receiving great attention in all regions, it is augmented reality since 76% of European and North American companies consider it key in the last mile. In fact, 34% say that it is a priority in which they should invest.
This is pointed out by Pat Nolan, senior research analyst at VDC Research for whom “Augmented reality is key to gain competitiveness and differentiation”. In this sense, it highlights the applications of these solutions that can help a driver to quickly identify a package in the van or access instructions for real time delivery. “In addition, they reduce the stress load of workers and contribute to making the operation more efficient in general”Nolan emphasizes.
Undoubtedly, these trends highlight how more and more companies in the sector are more open to innovation. Proof of this is also observed in the fact that half of the companies in the study that make use of smartphones take advantage of the BYOD (Bring Your Own Device) model, that is, they bring their own device.
With this, 57.1% of European respondents indicate that they seek to reduce costs, and 42% replace old hardware to contribute to profitability.
As Samuel Mueller, CEO of Scandit, highlights, the COVID-19 pandemic, together with the logistics crisis and global supply problems have accelerated solutions that were under development. “With the arrival of key dates such as Black Friday and Christmas, logistics companies are aware of the impact of last-mile problems on their customers. Addressing them is essential to guarantee the best service “, says the manager.
