FedEx is considered a pioneer in last-mile distribution strategies. Generally, managing
“last-mile” distribution operations pose significant challenges since “last-mile” distribution
services often present the most expensive segment within a supply chain. This increased
complexity in the e-fulfillment process could be attributed to various reasons such as high
levels of congestion, increasingly strict regulation, and a lack of dedicated logistics
infrastructure [8], [9]. Since Amazon and other online retailers have made free shipping
the norm for consumers, retailers must find a way to compete without sacrificing profit
margins. SmartPost is FedEx’s answer to this problem. With the help of FedEx and the
United States Postal Service, this service provides “last mile” delivery in an effort to cut
shipping costs. The final leg of the journey, which is considered to be the most expensive,
is handled by the United States Postal Service. During the last few years, the company has
literally fueled e-commerce by embracing last-mile distribution innovations. For example,
the Roxo robot is an all-electric delivery vehicle that uses only batteries that produce zero
emissions for deliveries in congested or difficult delivery locations. For the most part, Roxo
can be used within a three to five-mile radius of a retailer’s location. Roxo was built for
reliable, autonomous last-mile delivery, including traveling up the sidewalk and climbing
deep terrace steps.

Elaborate on the role of performance in “last-mile” distribution services, especially in the case of e-commerce supply chain management. (600-700 words-state resources)


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