Author: Dhruvil Sanghvi, Founder & CEO of LogiNext.

Last-mile delivery has become the most challenging and costly stage of the supply chain, often accounting for over 50% of total shipping costs.

Rising customer expectations, labor shortages, and environmental concerns have intensified post-pandemic, making fast, flexible, and transparent delivery a basic expectation. AI is now emerging as a critical solution.

Beyond routing, AI enables predictive demand modeling by analyzing historical data, behavior, events, and weather to optimize inventory and delivery placement. AI-powered customer service tools enhance communication, offering real-time updates and proactive issue resolution.

Dynamic routing algorithms adapt to real-time data, improving fuel efficiency and delivery speed. As traditional methods fall short, AI is revolutionizing last-mile logistics with adaptability, learning, and unmatched efficiency.