New Armstrong report assesses last-mile logistics growth in the U.S.

A recently-released report by Milwaukee-based supply chain consultancy Armstrong & Associates drove home the growth of the last-mile delivery in the United States and examines the segment from myriad angles.

The report, entitled“Making it Count”: Big and Bulky Last-Mile Delivery in the United States,”is the result of a partnership between Armstrong and the National Home Delivery Association (NHDA) and focuses on various trends and themes, including: the usage of independent contractors compared to employee drivers; customer and revenue trends by vertical industry; and the growing use of freight brokerage to source last-mile carrier capacity.

One of the report’s key findings observed that, for the 3PL’s analyzed, revenues ranged from $7 million to $1 billion, while accounting for around 40% of the estimated $9.3 billion U.S. Third-Party Logistics Big and Bulky Last-Mile Delivery Market.

Perhaps even more impressive, though, is the segment’s compound annual growth rate (CAGR), which came in at 18.2%, from 2017 through 2021, with an expected CAGR from 2022-2025, of 11.8%, which makes it one of the fastest growing 3PL segments over the next three years, according to Armstrong.

另一个关键的数据发现,在报告中,观察到that while the final transportation movement for an e-commerce order—the last mile itself—is short, it can also be very expensive, with transportation costs, for a shipment from a distribution center or a fulfillment center to its final destination, at a customer’s home, representing 30%-to-40% of its total cost of transportation. While that is a significant percentage, Armstrong noted that last-mile revenue-per-shipment is low compared to less-than-truckload (LTL), coming in at an average below $90 per shipment, with total shipment revenue varying, due to value-added services performed at the time of delivery. For example, it said that a bedroom delivery and setup can see revenue of $250, whereas a less service-intensive shipment may come in around $50.

Evan Armstrong, president of Armstrong & Associates, said in anOctoberLMfeaturethat going forward, he expects more 3PLs to add further value in the last mile of the supply chain, where getting big and bulky items from the final point of distribution to the customer’s location is still a major challenge. What’s more, getting furniture, fitness equipment and other large items to customers’ doors requires extra planning, and particularly when they want fast delivery times, which is a process that can also be expensive and time-consuming noted the feature

“That last-mile part of the market is still pretty fragmented, with XPO Logistics and Ryder ranking among the largest last-mile providers,” said Armstrong. “There are other 3PLs providing last-mile services, but this is a point in the supply chain where a lot of things can go wrong and where quite a bit of expertise is needed beyond just e-commerce fulfillment pick/pack operations.”

For more infornation on the report, please clickhere.