FarEye identifies strategies to address rising last-mile delivery costs in EMEA
Last-mile delivery costs across the EMEA region have risen by an average of 9%, with 96% of companies reporting increased per-delivery expenses.
A report by logistics software provider FarEye indicates that operational inefficiencies, termed the 'cost of fragmentation,' are driving up delivery prices for companies across Europe, the Middle East, and Africa. With nearly all surveyed businesses reporting higher expenditures, the logistics sector is facing pressure to optimize routes and capacity management.
FarEye CEO Kushal Nahata suggests four primary measures to mitigate these costs: investing in real-time visibility, automating manual dispatch processes, enhancing delivery accuracy through address verification, and consolidating shipments to reduce vehicle trips. These steps aim to address the systemic silos currently complicating fulfillment operations.
The findings highlight a broader trend of margin compression within the logistics industry. As consumer expectations for rapid delivery persist, companies are forced to balance rising fuel and labor costs against the need for transparent, reliable tracking. The proposed measures underscore a growing shift toward software-driven logistics to manage complex supply chain volatility.