Skip to content
Search AI Powered

Latest Stories

Forward Thinking

KPMG predicts revolution in last-mile logistics

Use of autonomous delivery vehicles will drastically change consumer e-commerce environment by 2040, research study says.

The development of autonomous delivery vehicles will revolutionize the consumer e-commerce environment, creating a new product delivery ecosystem over the next 20 years, according to a study released this fall by tax and advisory firm KPMG LLP.

The study forecasts a fulfillment system rooted in artificial intelligence and robotics, in which orders for goods are placed, received, communicated, then delivered via a fleet of autonomous vehicles to what the company refers to as "islands of autonomy"—metropolitan markets with unique mixes of consumer living, working and travel patterns that will require localized, tailored delivery services.


"E-commerce has been a tremor, but autonomous delivery vehicles now represent an earthquake of a magnitude not seen before," said Gary Silberg, KPMG's automotive sector leader. "With the push of a button, consumers will have their orders fulfilled far more efficiently than ever could be imagined because autonomous delivery will use cloud computer networking, natural language processing and artificial intelligence to deliver their orders at an unprecedented rate. For consumers, the delivery experience will go from next day to same day to next hour to even next minute."

Lower cost of delivery, accelerating fulfillment demand and a reduction in the number of personal vehicles in use will drive a "monumental change in consumer behavior," according to the study authors, and will transform automobile and transportation industries in key ways. Most notably, the study predicts that autonomous delivery vehicles will travel more than 78 billion miles per year by 2040. The authors emphasize the need for companies to develop local strategies for serving consumer needs in this new environment.

"Future delivery and retailing markets must be analyzed and developed locally if a business wants to excel," said Tom Mayor, KPMG's strategy lead for industrial manufacturing. "The winners will undertake, 'island-by-island' analyses of metro markets to understand residential densities, shopping patterns and the resulting, localized consumer time-and-convenience sensitivities that will determine the likely mix of next-day, same-day, same hour or 'get-it-myself' shopping. As a result, shopping and last-mile logistics will never be the same."  

Recent

More Stories

chart of top business concerns from descartes

Descartes: businesses say top concern is tariff hikes

Business leaders at companies of every size say that rising tariffs and trade barriers are the most significant global trade challenge facing logistics and supply chain leaders today, according to a survey from supply chain software provider Descartes.

Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.

Keep ReadingShow less

Featured

drawing of person using AI

Amazon invests another $4 billion in AI-maker Anthropic

Amazon has deepened its collaboration with the artificial intelligence (AI) developer Anthropic, investing another $4 billion in the San Francisco-based firm and agreeing to establish Amazon Web Services (AWS) as its primary training partner and to collaborate on developing its specialized machine learning (ML) chip called AWS Trainium.

The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.

Keep ReadingShow less
chart of robot adoption in factories

Global robot density in factories has doubled in 7 years

Global robot density in factories has doubled in seven years, according to the “World Robotics 2024 report,” presented by the International Federation of Robotics (IFR).

Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.

Keep ReadingShow less
person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less
A photo of brown paper packages tied up with shiny red ribbons.

SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less