Making the last mile in fulfillment profitable

In the logistics industry, downtime can result in significant revenue loss. With the rise of e-commerce logistics operators face increased pressure to boost productivity and meet fast delivery expectations while keeping costs down.

Digitalization is emerging as a powerful tool to tackle these challenges. Advanced technologies such as automation, AI, and digital twins empower logistics companies to streamline their processes and reduce operational costs. However, many warehouses still lack the network infrastructure to support these innovations, leading to significant losses. According to ABI Research, the logistics sector in the US and Europe is collectively losing an estimated $1.8 billion due to poor connectivity.

Micro-fulfillment: An emerging opportunity

One of the biggest opportunities in the e-commerce world lies in micro-fulfillment centers (MFCs). These small-scale warehouses and urban distribution centers are strategically placed close to end consumers to meet the growing demand for faster delivery times and improved service levels. With a projected annual investment growth rate (CAGR) of 53.8%, MFCs are set to revolutionize the logistics industry.

However, MFCs require agile, flexible, and cost-effective solutions that can eliminate downtime while scaling with business needs. The last-mile delivery challenge remains a costly bottleneck, with more than half of shipping costs tied to inefficiencies in this phase. Automation and connectivity can play a key role in driving efficiency.

Flexible automation: Futureproofing warehouses

Major logistics operators have long used automation to boost productivity, but traditional systems like conveyor belts and AS/RS may not suit the needs of Micro-Fulfillment Centers (MFCs). MFCs and third-party logistics providers need more adaptable, modular solutions that can swiftly adjust to seasonal demand changes. Smarter systems like autonomous mobile robots (AMRs) and modular devices will help MFCs scale operations, minimize downtime, and ensure resilience, empowering both workers and machines with flawless communication and real-time data.

The power of Nokia one platform for industrial digitalization

With all of these needs in mind, our team at Nokia put together an integrated logistics connectivity solution as a service designed to keep costs low while offering industrial-grade private wireless connectivity, edge computing, analytics, and ruggedized devices to empower the digital warehouse operations of MFCs and other small logistics operations.

Connectivity solutions such as 4.9G/LTE, 5G, and Wi-Fi ensure no more dead spots and edge computing provides the real-time data needed for rapid decision-making. By addressing network disruptions and eliminating downtime, Nokia One Platform delivers unmatched operational efficiency.

One of our North American customers, Graybar, a leading Fortune 500 North American distributor of electrical, communications, data networking, and industrial products, took advantage of our more robust connectivity. They were experiencing regular connectivity interruptions in their 325 locations, which resulted in warehouse operations grinding to a halt due to connectivity dead spots, which would change location daily. Supplementing Wi-Fi coverage with 4.9G/LTE, the dead spots were eliminated, and Graybar now enjoys consistent wireless connectivity throughout the warehouse. 

Warehouse software systems use a lot of analytics and data processing that require computing resources on-premises. That is where our industrial edge solution was perfect. It provides reliable, high-capacity edge processing on-site. Data stays local, and the proximity to end devices supports low-latency automation applications. This on-premises solution boosts efficiency, agility, and workflow automation, helping operators to quickly adapt to changing customer demands.

Through our close work with hundreds of enterprise customers and vertical suppliers, we’ve assembled a library of applications that meets the needs of many businesses, including logistics operators. These are proven applications

developed by our experts and third parties that enable connected equipment and worker use cases. Some examples, include:

• The Nokia High Accuracy Indoor Positioning (HAIP) application which instantly locates people and assets with high precision

• Taqtile Manifest^â presents mixed reality content on a tablet or heads-up display in real time

• Nokia Teams Comms connects workers with integrated voice and video communications for instant collaboration.

Again, through our work with partners and suppliers, we’ve also put together a full portfolio of connected devices that are ruggedized and ready for anything. They come with smart management tools and communication applications to ensure workers, machines and sensors can quickly and reliably share information.

Helping small logistics operations to solve the last mile problem will depend on having some of the most sophisticated automation platforms available. Highly reliable, easily implemented connectivity, edge computing, applications and devices will be essential.

We’ve put together an eBook that will help MFC and 3PL operators better understand the technical issues and how Nokia One Platform will fulfill the order.

Download our eBook here.