New Model for Large Format Last Mile Delivery

Last mile home delivery is a key driver shaping the growth and trajectory of the US eCommerce/ omni-channel retail economy. Amazon is exploring shipping products before consumers actually buy it, Volvo is partnering with retailers to develop smart-interfaces to allow customers have their cars “accept” delivery order drops at any parked location instead of a fixed residential address. While  efficient and innovative delivery models abound for small format and parcel products, large format product categories such as white goods, furniture and large electronics remain stuck in an ineffective and inefficient supply chain model, preventing their full potential growth.

Despite the need for change, progress has been slow for retailers and manufacturers to transform today’s large format product home delivery model for breakthrough performance.

In the following article, we examine the historical context of today’s delivery model and the structural barriers impeding transformation. We then offer a perspective on how the different actors in the industry can act to catalyze the formation of a new win-win home delivery supply chain model.  See figure below for current state vs. potential (emerging) future vision:

last mile _ today vs. future vision

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