The last mile delivery sector is set for a major revolution. This sector is presented with an enormous growth potential driven largely by the booming e-commerce industry. At the same time, there is also an opportunity for the sector to create wider economic empowerment through involving more participants in the logistics ecosystem. At the heart of any innovation is the customer, where there is a continual demand for faster, better, cheaper – and now, fairer service.
To capitalise on all the opportunities, a solution must first be designed to overcome inherent challenges that plagues the current system. We have identified three (3) key challenges currently faced by last mile logistics companies globally. The first key challenge is the high parcel delivery failure rate, which will undoubtedly increase the cost of operations due to the need for redelivery. The second key challenge is the low efficiency in parcel delivery, this is caused by the wide utilization of the traditional “Hub and Spoke” delivery model, where parcel delivery routes are highly affected by any delays in the central warehouse. The third challenge is the poor treatment of on-demand logistics couriers, these individuals have openly voiced out their unhappiness with regards to the lack of employment benefits and harsh work culture. Hence, we think there is a need for a system that will ensure parcel delivery can be performed in a low cost and efficient manner is of paramount importance to meet the growing demands.
LogisticsX aims to utilise blockchain technology to create a decentralised platform that will tackle the challenges mentioned above. It is envisioned that the trustless nature of the platform will provide the foundation for a harmonized ecosystem between the different stakeholders involved in the last-mile process such as the third party logistics companies, e-commerce retailers, logistics couriers and end recipients. With various technologies and connection methodology used between the logistics stakeholders currently, LogisticsX envisions to set forth the global common standard for the connection between logistics stakeholders to increase efficiency in a global parcel delivery network.
Moreover, due to the shared nature of the ecosystem, LogisticsX believes that the future of last mile logistics will have more stakeholders involved than the traditional “Hub and Spoke” model. Freelance individuals will be able to participate in various segments of the delivery process. Additionally, logistics companies will also have a new way to redirect their deliveries to the nearest Parker Point (explained below) to receive parcels on behalf of the end recipient. Lastly, the platform also aims to improve the compensation of on-demand logistics couriers by establishing close collaborations with strategic partners such as Blue Whale Foundation (“Blue Whale”). We aim to leverage on their potential capabilities to provide freelancers operating in the LogisticsX ecosystem with more comprehensive and sustainable benefits.
To sum, LogisticsX aims to transform the last mile delivery sector by increasing traceability and transparency while reducing the fragmentation currently present between stakeholders and actors in the logistics business.