DispatchTrack, the leading solution provider of right-time delivery management software, today introduced the 2022 Last Mile Holiday Perspective. The inaugural report explores how logistics professionals are thinking about and planning for the upcoming holiday season as they grapple with record-high fuel costs and soaring inflation. The report is based on a survey of more than 130 logistics professionals conducted last month.
Contrary to recent reports of oversupply at big box brands, 6 in 10 respondents indicated they're worried about inventory shortages and the vast majority (82%) fear they'll miss delivery windows again this year. Yet, only 1 in 3 businesses are preparing for the holiday season earlier than they did last year. To improve operational efficiency, half of respondents indicated that their companies invested in new technology or expanded existing solutions this year. 4 in 10 are planning to rent additional warehouse space or trucks to prevent potential fulfillment roadblocks.
The data uncovered further unease with the upcoming holidays. Fuel costs topped the list of last mile concerns (82%), followed by inflation (50%) and driver shortages (48%). 1 in 3 logistics professionals are worried about delays that are out of their control and 1 in 4 said they fear they won't be able to keep up with demand.
Respondents were split on whether business would be up or down this year. For revenue projections, 1 in 4 indicated that they don't know what to expect this year. A third expected an increase in revenue and another 1 in 3 expected revenue to be down. There was an overwhelming consensus that operating costs would spike even without factoring in fuel cost increases, yet a quarter do not plan on raising rates. The remaining three-quarters said they would raise rates due to fuel costs and inflation.
"Inflation and fuel prices are mounting serious pressure on last mile operators to optimize routes and find new ways to improve efficiencies. Margins have never been this uncertain," said Shailu Satish, DispatchTrack co-founder and COO. "It comes as no surprise that this report revealed businesses are making aggressive technology investments to improve last mile efficiencies, especially to reduce miles driven and trucks on the road this holiday season and beyond."
The 2022 Last Mile Holiday Perspective can be found here.
The online survey was conducted via SurveyMonkey June 7th - July 2nd, 2022 among 133 logistics professionals. Industries include furniture and appliances, 3PLs, building supplies, medical, agriculture, auto parts, and food, beverage, and grocery distribution. Employee sizes ranged from 1-10, 11-50, 51-100, and 100+.
DispatchTrack is the leading solution provider of right-time delivery management software, helping top brands around the globe power successful deliveries 180 million times a year. Since 2010, DispatchTrack’s scalable SaaS platform has made delivery organizations more connected, agile, and intelligent using highly-configurable capabilities designed to empower better delivery management from end to end. Our proprietary AI-powered routing algorithm ensures 98% ETA accuracy in last mile deliveries, and we’re constantly innovating to improve performance and better serve our 2,000+ global customers, including Wal-Mart, Coca-Cola, Ashley, Ferguson Enterprises, Cargill, McCain Foods, and many others. When businesses make promises to their customers—DispatchTrack makes sure they deliver.
You can follow DispatchTrack on LinkedIn and Twitter.
For press inquiries, email brian@dispatchtrack.com