Author name: training@cubensquare.com

The last mile has remained among the most challenging and the most expensive part of the entire supply chain due to restrictions of geography. According to CapGemini Research, last mile delivery can account for as much as 41% of the overall supply chain costs, hence a pressure on the logistics carriers to reduce such key last mile costs. This being the case, by the year 2025 artificial intelligence has emerged as the major facilitating factor that is helping such deliveries to be done faster and at a lower cost while at the same time smarter and sustainable. These include the choice of the right route through the use of route optimization algorithms to autonomous vehicles and interactive applications including chatbots. In this article, we identify a number of trends that can be considered as the most promising in the logistics sector. Route Optimization The most important use of AI in last mile logistics has to do with route optimization. Classically, the route was planned based on fixed traffic conditions, the intuition of the drivers and heuristic-based scheduling. However, in the current world where traffic jams are on the rise and the consumer demands are ever rising, such models are incapable of providing real time adjustments to factors such as traffic accidents, road closure and changes in weather patterns. In these developing years, such technologies are being slowly adopted by e-commerce giants as well as other small and medium logistic companies, and drivers are now a days allowed to do what they do best i. e. use AI based navigation to find their way through the congested urban areas and deliver the parcels to the doorsteps faster. ALSO READ 2024: A Year of Milestones and Momentum for India’s Renewable Energy Sector Furthermore, optimization will not only stop at road deliveries. With AI, these can combine various modes of transport that include vans, bicycles, and even pedestrian couriers to ensure that each parcel is delivered by the most appropriate mode of transport. This approach has been enhanced with the help of AI in order to reduce traffic congestion, carbon footprint and the overall costs of transportation. The Evolution of Autonomous Delivery Vehicles In the future, the last mile delivery will be integrated with autonomous technology through the use of AI-based drones, robots, and self-driving cars. Current examples include, for instance, large companies like Walmart and Amazon that have used drones to deliver small packages to the consumers’ homes within a timeframe of 30 minutes or less. Others have started up a number of new companies, and also established logistics companies are trying out with ground-based robots and driverless vans which can move on the sidewalks or almost empty streets. Nevertheless, there is a serious advantage for the business, and that is, such autonomous solutions work 24/7. It is also very much possible to avoid traffic congestion by using the roads during off-peak hours in otherwise hard-to-reach areas. And other issues, like the ability to understand and avoid obstacles, will also continue to evolve as AI technologies improve for deployment in large numbers. It is reasonable to expect that by 2025, there will be more robotic systems that deliver packages of goods to the selected urban areas. Real-Time Tracking and Transparency The modern consumer wants to know every detail of how their purchases are being delivered from the warehouse to their doorsteps. Real-time tracking solutions are enhanced by AI to provide visibility by collecting and analysing large quantities of location and condition data. The third and fourth-order companies are installing AI-driven sensors and IoT devices that not only provide real-time location information but also track parameters such as temperature, humidity and tampering. Customers can also receive alerts when the shipment is delayed or when it will be delivered – this helps in minimizing the number of ‘Where is my order?’ questions that are made to the company as well as allowing for swift intervention in case of any inconvenience to the customers and increasing their trust. Smart Demand Forecasting through Predictive Analytics This is not a new concept in the logistics industry but AI improves the accuracy and usefulness of demand forecasting. The conventional methods of forecasting consider factors such as seasonal variations, marketing activities, and even local events to come up with future demands. Using order data, inventory levels, or real-time market data as input these models can calculate how many deliveries might be needed and where the hotspots are. It is in the optimization that we are able to address issues such as driver shortage and inventory concerns that may affect the last mile delivery. Improving Customer Experience through AI The standards of the customers for the customer service are rising and thus the AI-powered chatbots are becoming a common trend. Intelligent personal assistants are no more limited to answering FAQs and solving contextual problems, they are intelligent. In last mile delivery for instance, information on packages is updated in real time when using AI chat bots for example, suggestions on rescheduling delivery in case the recipient is not available at the home address, and assisting in processing Return or ReRoute requests. For the logistic providers it will be beneficial in the following way: on the one hand, it is possible to increase customer satisfaction level due to the ability of the system to offer real time support to the customers and thus relieving the burden on the human customer service agents to attend to the most complex or sensitive issues. Such chatbots could respond to most of those general delivery related concerns that people may have; from apartment buzzer codes to gate pass details. Sustainability driven by AI From what was once a corporate slogan, sustainability is fast becoming an actual business strategy owing to increasing global environmental concerns. By controlling the routes of delivery, the vehicles are able to take the most efficient route thus minimizing the carbon footprint while at the same time optimizing for load capacity utilization. Currently, the trend of the last mile delivery is the electric vehicle, and the route planning systems which support

With the 2025 budget all set to be unveiled on 1st February, the D2C sector is eying significant developments. The industry projects the government to simplify compliance to spur growth and advance the country’s economic development, as well as to provide measures that would sustain and intensify the positive trajectory that was observed in 2024. Over the past five years, the Indian e-commerce landscape has witnessed a revolutionary transformation. Especially with D2C brands setting their foot and gaining dominance, conventional marketplaces have been facing significant challenges. Moreover, with the emergence of new-age technologies D2C industry has gained amplified reach and prominence, cementing their position in the Indian market. According to a Mordor Intelligence report, the Indian D2C E-commerce Market size is estimated to reach $ 87.5 billion in 2025, and $ 267.03 billion by 2030, at a CAGR of 25% during the forecast period. This statistical figure is a testament to the positive growth trajectory of the D2C market. One key driver of the success for the D2C segment is shipping and logistics. While shipping and logistics, as an industry in itself, has been prone to disruptions, thanks to pandemic, it has simultaneously been a hub of innovation. As per Mordor intelligence, the Indian Freight and Logistics market size is estimated at $ 349.4 billion in 2025, and is expected to reach $ 545.6 billion by 2030, growing at a CAGR of 9.32% during the forecast period. The industry is expected to continue expanding steadily and vigorously as it gets ready for 2025, supporting D2C growth. ALSO READ NO DISRUPTION TO RUSSIAN OIL SUPPLY TO INDIA TILL MARCH: OFFICIAL With the 2025 budget all set to be unveiled on 1st February, the D2C sector is eying significant developments. The industry projects the government to simplify compliance to spur growth and advance the country’s economic development, as well as to provide measures that would sustain and intensify the positive trajectory that was observed in 2024. Here’s a look at what D2C players are expecting from the upcoming budget: Facilitate compliance: The D2C ecosystem has been often exposed to challenges surrounding regulations and compliance. Especially when it comes to tax regulations such as GST, the comprehensive documentation process can create barriers to seamless business operations. Thus, the D2C players urge the government to introduce a centralized and transparent checklist for GSTN registration. A streamlined approach will enable the brands to target expansion while focusing on growth, innovation, and customer satisfaction. Affordable access to digital tools: New-age technologies have become the modern-day rulers of industries and D2C is no stranger to it. Artificial intelligence and Blockchain technology, amongst others, are automating the world of shipping, enhancing supply chain visibility. In order to regulate inventory, enhance tracking and elevate real-time management, D2C brands require economical access to these technology-oriented tools. According to a PwC report, only 50% of Indian logistics companies are using technology at scale, which indicates a large opportunity for improvement. Thus, the D2C brands expect the budget 2025 to launch initiatives to encourage the adoption of advanced technologies. In addition, subsidies for integrating digital efforts could help smaller D2C players compete on a larger scale. Encourage sustainable business practices: Sustainability and greener business efforts have been a matter of discussion for years. However, with frequent natural disasters becoming the norm amid climate change, the need for adoption of sustainable practices by industries has become paramount with the D2C sector being no exception. But moving to green delivery approaches comes with high upfront costs. In a World Economic Forum study, 75% of logistics companies cited the high initial investment in green technologies as a major barrier to adopting sustainable practices. The budget 2025 could encourage the sustainable method adoption amongst the D2C brands by supporting tax reliefs and promoting renewable energy initiatives within logistics operations to make sustainability more accessible to D2C brands. Budget 2025: A promising future ahead India’s D2C market is equipped for rapid expansion and is projected to reach $60 billion by FY27, according to a joint report by CII and Praxis Global Alliance. While the D2C sector is currently experiencing growth, the government’s backing is essential to establish a robust and sustainable D2C ecosystem in India. With the 2025 budget around the corner, industry participants are optimistic about the essential reforms that will drive the sector’s expansion. At the behest of right initiatives, the government can address operational challenges within the shipping industry while empowering D2C brands. By emphasising technology, sustainability and tax reforms, India carries potential to lead a shipping revolution that supports not just D2C brands but the entire digital economy. The crucial harmonization between the budgetary strategies and sector’s long-term vision is pivotal in cultivating a dynamic and flourishing D2C landscape . The shipping industry’s new frontier is here—and the 2025 Budget holds the key to unlocking its potential.