As South Africa marks Transport Month in October, it's an opportune time to reflect on the profound shifts in the logistics sector that have redefined how goods are transported and delivered. The pandemic-induced changes in consumer behaviour have accelerated the rise of last-mile delivery, transforming it into a critical pillar of modern logistics. What once relied on large-scale, long-haul freight systems has now given way to more personalised last-mile solutions that deliver items directly to consumers’ doorsteps.
Last-mile delivery refers to the final step in the delivery process, where a product or parcel is transported from a distribution centre or local hub directly to the end customer’s location, such as their home or business.
This evolution has reshaped the road freight industry, placing new demands on infrastructure, technology, and economic participation, and highlighting the importance of an agile and responsive transport system in today’s digital-first economy.
Karen Visser, Programme Leader for Transport Economics and Logistics Management at the North-West University’s (NWU) Faculty of Economic and Management Sciences, explains these and other trends in the transport sector:
“Road freight transport and related activities make life as we know it possible and are the impetus of any economy, giving us access to much-needed goods and services. The Covid-19 pandemic literally brought the world to a standstill. The virus took us al by surprise and caught most industries off guard, as no preparation would have positioned any industry to respond and deal with it sensibly. In a very short space of time, the provision of road freight transport had to be rethought and changed to sustainably adapt to a newly created environment and provide comparable levels of service.
Last-mile delivery quickly became the norm and remains a preferred option for buying just about anything and having it delivered to your doorstep.
In South Africa, Mr Delivery and Uber Eats have been around for years, but the industry has evolved to the point where you can now order anything online and have it delivered to you from the comfort of your own home. Takealot is a South African company that prides itself on secure online shopping and reliable delivery in a very reasonable time. International companies such as TEMU and Sheen have recognised our untapped potential and are steadily infiltrating the market.
The mere expectation that individuals will have access to all kinds of items delivered to them is changing the profile of the road freight delivery industry as we know it. Less emphasis is being placed on longer-distance deliveries of fast-moving consumer goods (FMCG) items to central points of consumption, and depots are being used as distribution centres not only to outlets but also to end users through last-mile deliveries in smaller, more accessible vehicles. As well as changing the profile of the industry, this has also opened up so many opportunities for individuals to participate actively in the economy as delivery people for a wide range of industries. Many law firms for instance need to deliver original documents to courts or individuals and now use ad hoc delivery services instead of formal courier services at a fraction of the cost.
Bike messengers are a big deal in the USA, but in a country where both the bicycle and the package being delivered are likely to be stolen, this is not an industry that is likely to flourish here. Companies are adapting by using smaller vehicles, e-bikes, and optimising routes to navigate traffic more effectively and safely.
In a country that has yet to find sustainable solutions to poverty, urbanisation remains an issue, as opportunities seem to be in and around urban areas. With a growing urban population and congested city centres that are also home to a high percentage of opportunistically unemployed people, serious challenges remain for last-mile delivery.
The pandemic brought a visible shift in consumer expectations, as it became standard to have almost anything delivered to your doorstep within a very reasonable time. Same-day delivery, precise delivery windows, and seamless returns processes have become the norm. However, last-mile delivery can be expensive, often accounting for a significant portion of total logistics costs. To address this, companies are looking for ways to reduce costs through better route planning, shared delivery networks, and improved operational efficiencies. A growing trend is for companies to collaborate to share resources and reduce costs, creating networks that improve both delivery efficiency and service levels. However, the state of last-mile transport varies greatly from region to region. While developed countries benefit from advanced infrastructure and technology, developing countries face challenges such as poor road conditions and limited logistics capabilities, making efficient last-mile delivery more difficult.”
Karen Visser
