Reimagining the Last-Mile Distribution System Under Internet of Things Diffusion

Abstract

The last-mile sector, as a catalyst of the supply chain logistics network, epitomises an integral part of electronic commerce (e-commerce) in mitigating fluctuating consumer demands during and post-COVID-19 pandemic. Reliable, responsive and agile customer goods deliveries have become the focal point in diffusing innovative last-mile delivery-based technologies. This study, therefore, aimed to examine the viability of last-mile distribution, underpinned by the advent of emerging technologies such as the Internet of Things (IoT). The objectives are to establish the extent of applied IoTs within the last-mile distribution industry system. Furthermore, to examine the influence of organisational strategy on the use of IoTs in the last-mile logistics industry. The theoretical framework underpinning the study is the Technology Organisation Environment (TOE) framework and complexity adaptive theory, employed within an exploratory research design. The quantitative analysis of the impact of IoTs on the cost and quality of 179 purposively and snowball-sampled stratified last-mile distribution companies in the Durban region, using univariate and bivariate methods. The main findings suggest that the integration of IoTs in the last-mile logistics industry has the potential to optimise routing, eliminate in-process collisions, enhance cost efficiency, and enable organisations to exercise agile operations, responding to quasi-real-time visibility of inventory levels in stores, in transit, and warehouses.