Three years into the Covid-19 pandemic, the “bullwhip effect” of misaligned capacity and demand persists, contributing to labor and equipment shortages alongside port and inland congestion. Balancing capacity and demand has proven elusive, as many companies still lack full real-time, end-to-end visibility into the location and status of finished product and inputs.

The rise of B2C e-commerce has amplified the challenge, with more and smaller shipments, multichannel fulfillment options and high customer expectations for time-definite delivery. Sheltering in place and remote work during COVID have extended the B2C model to many traditional brick and mortar businesses, especially in retail, concentrating cost and capex investment impacts in the final mile.

It should not be surprising, then, that the last mile is also where opportunities for savings and competitive advantage are greatest. More than ever, the key to managing final-mile costs while reliably meeting service commitments is the capability to sense and respond to demand amid market volatility.