Improving last mile distribution systems through the Internet of Things: a South African case

Abstract

The study investigates the impact of the IoT on the cost and quality of last-mile logistics, the critical and often challenging final phase of the supply chain. With the relentless growth of e-commerce and the increasing demands for efficient and reliable delivery services, understanding how IoT affects last-mile logistics is increasingly becoming important. Through the integration of IoT technologies such as GPS tracking, RFID systems, and real-time data analytics, the study aimed to assess the extent to which the application of the IoT affects the cost and quality of last-mile distribution in South Africa. As a result, the study provides valuable insights into the potential cost savings or increases associated with IoT adoption, quality challenges and areas of improvement, customer satisfaction and the overall performance of last-mile distribution systems. The methodology involves the collection of primary data from selected distribution companies in South Africa. Statistical software was used to analyse the data to shed light on the tangible benefits and challenges associated with IoT adoption in last-mile logistics as they relate to cost and quality. The research findings indicate that implementing IoT in last-mile distribution systems in South Africa can significantly improve efficiency and effectiveness. The IoT integration with existing infrastructure enables seamless communication, proactive decision-making, and reduced delivery delays. Overall, by leveraging IoT technologies and real-time data analysis, organisations can optimise their distribution processes, reduce costs, improve quality, and enhance overall customer experience.