Bangladesh, the fastest urbanized country, that being redeveloped from an agricultural-based to industry industry-oriented country. Cities have been enlarging at an unprecedented pace over the last few decades. Individuals are leaving tiny towns and moving towards the cities for better jobs, education, and healthcare, more specifically for a better lifestyle. Dhaka- the capital city of Bangladesh is placed as one of the crowded and noisiest cities. Suburb cities like Chittagong, Rajshahi and Khulna are seeing a rapid increase in population.
This rapid transformation is impacting several sectors, mostly in the last-mile delivery. The doorstep delivery from internet shopping is creating a complex delivery environment. Today, we are going to discuss the challenges, opportunities and solutions of the last-mile delivery of Bangladesh.
The boom of E-commerce and its heavy reliance on the last-mile delivery
E-commerce development has reached its highest peak in Bangladesh. Seamless access to the internet and mobile phones has made purchasing more effortless. Appliances, digital products, FMCG, or even the daily bazaar have become super convenient for people, just by tapping some buttons- the product is delivered within 24 hours. Last-mile delivery is the final phase-moving products from stores to buyers’ homes, and is fundamental to digital business success. But this is the most costly and complex process, especially in densely populated areas with heavy traffic jams, narrow and filthy streets, and no authentic addresses that confuse the logistics operations.
Last-mile delivery challenges for urbanization
Urbanization is good, no doubt, but it has also made it difficult for last-mile delivery in Bangladesh. Let’s shed some light on the problems:
1. Traffic Jam:
More people mean more vehicles and more vehicles mean terrible congestion of vehicles. Dhaka, the paralyzed city, because a trip of 10 minutes can take around 1.5 hours. The outcome for last-mile delivery is delayed delivery, burning costly gas and idle delivery vehicles. The impact is diminishing effectiveness regarding delivering products and the productivity of people.
2. Poor Infrastructure:
Infrastructure is insufficient in most urban areas, particularly in fast-growing cities. In slums and older areas of cities, delivery vehicles may find it hard to get to intended locations because of narrow, unpaved roads. The absence of precise signboards and addressing systems also complicates navigation, making deliveries missed or delayed.
3. Overpopulation:
Sheer volume of people roams around the urbanized cities and delivery systems can be delayed for this. A large number of deliveries are made within small geographical boundaries in the corners of dhaka and other cities. Whilst necessitate efficient routing and coordination, which are supposedly hard to achieve because of the dynamic nature of such places.
4. Environmental Concerns:
Most posh cities battle with air pollution, and due to more delivery vehicles, there is an increase in carbon emissions. The environment is deteriorating day by day, and increased carbon emissions worsen environmental problems. Therefore, people are calling for alternatives that should be more friendly to the surroundings.
5. Changes in Customer Expectations:
Digital businesses are the mainstream with the increase in urbanisation. This is leading to a situation where customer expectations are focused to promptness as well as precision. Consumers expect delivery on the day of order or, at the latest, by the next day; hence increasing the stress on logistics firms who are finding modalities on how to improve their last-mile delivery mechanism.
Modern problems need modern solutions
Despite the magnitude of the challenges, last-mile delivery in the cities has huge potential to grow. Let’s see some interventions that are emerging:
1. Micro-Warehousing:
Area-based micro-warehouses can enhance their inventory management and decrease delivery times. Location-based, strategically positioned tiny warehouses help to restock fast and keep the delivery system more seamless because, over the short distances, the traffic jams can be skipped and minimized as well.
2. Electric Vehicles:
Electric vehicles are fast becoming a popular option for last-mile delivery among numerous firms due to environmental concerns. They are carbon-free which reduces the carbon footprint while delivering products to the customer location. Moreover, exploring the congested areas is easy for the electric vans.
3. Bicycle and Paddle Van Deliveries:
Highly populated cities have serious traffic congestion. So bicycles and paddle vans can gain more access and attention. These modalities of transport are eco-friendly as they easily reach bulky centers located in narrow streets and other densely populated regions. Timely delivery is now being ensured by companies with the use of bicycles and traditional vans, whom they emphasize because they are better acquainted with the area where delivery will take place.
4. Route Optimization:
With the advancement and easy internet access, organizations are creating real-time methods to simplify contemporary delivery routes. By examining aspects such as congestion trends and pavement quality, these platforms can notably lessen the amount of time taken for a parcel to arrive while enhancing its overall effectiveness.
5. Allocating Pickup Points:
Because some people do not have homes, we need several ways to deal with the issue of delivery failure. So every city has its pick-up points that allow users to collect their parcels at the perfect time for them. In turn, it results in less time-consuming re-deliveries as well as less money spent on transport fees.
The Social Impact of Urbanization on Last-Mile Delivery Workers
One of the prominent effects of urbanization is the impact on the logistics infrastructure and implications surrounding the social aspect of last-mile delivery workers. Urbanization, with increasing demand for delivery services in urban areas, has contributed to increased job opportunities, especially among low-skill workers. However, it also has serious challenges like:
1. Job Creation:
Job opportunities for delivery workers have arisen due to the rise of e-commerce and the demand for effective last-mile delivery. Youths in cities often work as couriers, and although their jobs are demanding, they can earn a regular salary.
2. Working Conditions:
The life of a delivery worker is a tough go, filled with recklessness in the bumper-to-bumper traffic moving slowly in city centers, working like mad men trying to beat the clock; waking up at the wee hours of dawn only for one phone call from your boss on whether or not you made it. It is very common to see them moving faster than the permitted speeds when they have a lot of packages to deliver. The pressure to deliver quickly can lead to stress and burnout, and in some cases, unsafe driving practices.
3. Lack of Benefits and Job Security:
Several last-mile delivery workers work on a contract basis and do not receive benefits that full-time employees would get, like health insurance, paid leave, or job security. This may lead to financial difficulties and a lack of advancement in their occupations.
4. Impact of Automation:
When businesses look into using machines and drones for their operations, they worry that these could take the place of human beings. Automation improves production efficiency, but does this mean those engaged in last-mile distribution will be out of work forever?
5. Opportunities for Skill Development:
To solve some of these issues, programs must exist that will provide training and capacity building for the last-mile delivery staff. Such programs can assist in transitioning workers into other positions in the logistics industry as well as encourage them to pursue careers in related sectors through the development of new skills.
The Role of PriyoShop in Shaping Last-Mile Delivery for B2B
PriyoShop, the leading B2B marketplace, is providing last-mile service to its retailers, and it is positively impacting the profit margin of urban and rural MSMEs. As cities are expanding, there is a need to ensure that the cities are catered with proper logistics within a short time frame. So, how is PriyoShop promoting logistics? These are some of the strategies:
1. Promoting Sustainable Practices:
To promote green delivery methods, the PriyoShop uses its own EVs and paddle vans and applies more and more eco-friendly practices.
2. Facilitating Technological Innovation:
For Bangladesh to be the hub of new last-mile delivery solutions, PriyoShop is taking full advantage of modern technology, automated vehicles, apps and other solutions. PriyoShop has endogenously developed a logistics organization dealing in B2B business delivery services. To overcome challenges brought by urbanization, they have invested in making use of technology to optimize delivery routes as well as enhance efficiency. In addition, the company provides doorstep pick-up and drop off thus facilitating delivery on behalf of small businesses.
3. Encouraging Private Partnerships:
PriyoShop believes that for better and stronger final mile delivery services can only happen through cooperation between authorities and private individuals. Private partnerships may assist in overcoming the discrepancies between the requirements of the logistics field.
4. Green Hubs:
They have developed an impressive last-mile delivery system that serves a variety of locations throughout Bangladesh. The company employs a blend of small, environment-friendly warehouses and effective inventory management techniques to ensure that products reach their destination fast and truly. PriyoShop’s emphasis on mom-and-pop shopkeepers’ satisfaction has enabled them to create a devoted clientele within cities.
Conclusion
In Bangladesh, urbanization poses significant challenges as well as opportunities for last-mile delivery. As cities grow bigger and more businesses adopt online purchasing behavior, demand for efficient shipping systems will continue to increase. By adopting advanced technologies, developing supporting infrastructures, and practicing environment-friendly methods, organizations within the same context can maneuver through urban settings while still adding value to their customers.
Last-mile delivery in Bangladesh should focus on innovation, partnership, and meeting the expectations of a rapidly urbanizing population. This poses a challenge for business firms that must be able to change quickly if they want to survive in a dynamic business environment.