First Mile Logistics Delivery Software Market Size

First Mile Logistics Delivery Software Market Size

First Mile Logistics Delivery Software Market size was valued at USD 3.8 billion in 2023 and is estimated to register a CAGR of over 7.6% between 2024 and 2032, propelled by factors such as the surge in e-commerce, the need to optimize urban deliveries, and increasing labor costs and shortages. In addition, the booming e-commerce sector has created a demand for efficient first-mile solutions. As online shopping becomes more entrenched, businesses require advanced software to manage pick-up, sorting, and consolidation processes in warehouses and distribution centers.

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With growing urban populations and rising traffic congestion, first-mile software is becoming essential for optimizing delivery routes, reducing fuel consumption, and ensuring timely deliveries in dense city areas, thus driving market growth. For instance, in February 2024, Shipsy launched its logistics solutions on AWS Marketplace. These solutions address critical logistics needs such as transportation management, route optimization and planning, fuel consumption optimization, first-mile pickup, multi-courier management, and on-demand delivery management.
 

Moreover, modern first-mile software seamlessly integrates with last-mile delivery platforms and enables real-time data sharing. This ensures delivery drivers receive precise information on pick-up locations, package details, and optimized routes for final delivery to customers. Labor shortages in the logistics industry are prompting companies to automate tasks and streamline workflows. First-mile software assists in managing staff scheduling, workload distribution, and real-time delivery tracking, thereby enhancing overall efficiency.
 

For instance, in June 2024, E2open introduced an appointment scheduling API within its transportation management solution. This innovation aims to improve efficiency and collaboration among supply chain partners by reducing manual work, decreasing lead times, and centralizing scheduling data for shipments and dock scheduling.
 

The first-mile logistics delivery software market faces several challenges, including integration with legacy systems, data accuracy, and real-time visibility. Integrating first-mile software with existing warehouse management (WMS) and enterprise resource planning (ERP) systems can be complex and time-consuming. Compatibility issues often arise due to different software versions and data formats, adding to the challenges.
 

Maintaining accurate and real-time data across the supply chain has become essential, as any discrepancies or delays can result in inefficiencies, miscommunication, and delivery delays. Ensuring real-time visibility across the entire logistics network, from suppliers to distribution centers, continues to be a significant challenge. As a result, these factors restrict the adoption of first-mile logistics delivery solutions and hampers the market growth.