Optimizing Last Mile Delivery Strategies for Efficient Fleet Management in Indian Cities

As EVs continue to become mainstream, forward-thinking last-mile delivery strategies have become imperative for efficient fleet management, especially in Indian cities.

April 09, 2024. By News Bureau

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Charging infrastructure

The majority of the world’s transportation is focused on transporting essential goods between two locations. The global economy depends on trade, which in turn depends on transporting goods efficiently so economies keep on operating and billions of people receive everyday necessities. The conventional logistics operations are sustained by fossil-fuel-powered vehicles that in turn, contribute significantly to pollution and global warming. These calamities have forced our planet on the brink of a global catastrophe, necessitating the need to establish alternative energy sources to power transport solutions and create an environmentally responsible future.

Electric vehicles have become the need of the hour, and are becoming increasingly adopted for commercial and personal purposes. As EVs continue to become mainstream, forward-thinking last-mile delivery strategies have become imperative for efficient fleet management, especially in Indian cities. These strategies are crucial to reduce environmental impact across the country, while also offering cost-effectiveness, productivity, and convenience.

Adopting Electric Solutions for Transportation
The extensive adoption of EVs in commercial requirements is one of the most crucial components for establishing an innovative logistics system in India. Electric vehicles offer zero greenhouse gas emissions and significantly reduce noise pollution in contrast to traditionally powered vehicles. Additionally, considerable research and development efforts in battery technology have led to improved range and optimized performance - perks that put them in a unique position to cater to the needs of the commercial space.

Not only reducing the environmental impact in the country, electric vehicles offer a more cost-effective approach to their operators, helping them to reduce operational expenses and increase profit. This perception has been validated by several studies, which have revealed that electric vehicles reduce 40 percent of the total greenhouse gases emitted by conventionally powered vehicles. These new-age vehicles require a significantly lower operating cost owing to their simple design and low maintenance needs. The electricity that is generated to power these vehicles also costs significantly less than petrol or diesel, which has prompted global governments and private sector entities to introduce subsidies and charging stations to drive the EV transition forward. Presently, a new subsidy scheme (FAME 3) is in the pipeline for the Indian government, which is expected to be announced in the Budget in July. Similar to the old FAME 2 scheme, the FAME 3 will also subsidize EVs across India, prompting customers to embrace a greener and electric future.

Innovative Last-Mile Delivery Solutions
As India transforms its transportation network with new-age electric vehicles, last-mile delivery solutions have been arguably the most challenging and resource-depleting aspect. Recent studies have revealed that last-mile delivery solutions have the potential to be up to 70 percent more expensive in India, compared to developed countries. However, it has been handed a boost in recent years, with the government and leading private players collaborating to ease the adoption. EV manufacturers and delivery operators have also come up with innovative approaches to streamline last-mile delivery.

Technological optimization of routes - One of the trends to simplify last-mile delivery solutions has been to incorporate assistance from modern technologies focusing on enhancing efficiency. EV manufacturers and operators are equipping electric vehicles with apps that gather real-time data on traffic, weather and delivery time to advise drivers with the most optimized routes to complete their deliveries. Studies have shown that these applications are capable of decreasing delivery times by 20 percent, promoting efficiency and reducing operational costs.
Utilizing two-wheeler EVs - One of the biggest challenges for transportation in India is traffic congestion, which costs valuable time and operational expenses. However, delivery operators are in a unique position to solve this challenge by incorporating the services of two-wheeler EVs, that are lightweight, and able to navigate through traffic congestions while maintaining delivery schedules.
Data-driven strategic decisions - Delivery operators are already using data collected by these vehicles to make strategic decisions. Appropriate data regarding delivery time, operational cost, and related points can help them establish a rapid delivery solution that drives growth.
Increased collaborations - A valuable partnership between local government, delivery operators, EV manufacturers and other stakeholders promises to establish an optimized last-mile delivery strategy that can replace conventionally powered vehicles. These collaborations will focus on establishing charging infrastructure and supporting policies and incentives to streamline the process.

Challenges and Future Considerations
India’s present scenario in the last mile delivery is witnessing a rapid evolution. With increased implementation of technological solutions, more development in the sector is to be expected in the coming years. However, numerous challenges are still plaguing the sector which needs to be addressed soon.

One of the most significant challenges to establishing a rapid last-mile delivery in India remains the lack of charging infrastructure. However, the Indian authorities and private sector are working tirelessly to establish the necessary infrastructure. From 6,586 operational charging stations across the country in 2023, India has now developed more than 12000 public EV charging stations till February 2024, marking a significant rise. To support the effort, regulatory frameworks are also being drafted that will optimize last-mile delivery solutions in the country. Productive collaborations will remain key in this endeavour, contributing to a greener and more sustainable future for Indian cities.

- Pritesh Mahajan, Co-Founder, Revamp Moto