Leveraging AI to Overcome Key Challenges in Last-Mile Delivery: Enhancing Customer Experience and Operational Efficiency in E-commerce

Abstract

This study explores the potential of leveraging Artificial Intelligence (AI) to address key challenges in last-mile delivery (LMD) within the e-commerce sector, with a focus on enhancing customer experience and operational efficiency. The research investigates the primary obstacles in LMD, such as high delivery costs, delays, and package handling issues, which contribute to customer dissatisfaction and operational inefficiencies. Utilizing a cross-sectional survey design, data were collected from 42 respondents, encompassing a diverse group of e-commerce users. The study examines the correlation between AI adoption and customer satisfaction, revealing a weak negative relationship, suggesting that factors beyond customer satisfaction, such as perceived operational efficiency and environmental impact awareness, may significantly influence AI adoption decisions. Key findings indicate that while customer satisfaction does not strongly predict AI adoption, there is a notable positive correlation between AI awareness, environmental impact awareness, and the intention to adopt AI-driven LMD solutions. The study highlights the importance of enhancing consumer understanding of AI's benefits and promoting sustainable delivery practices to increase AI adoption. Multiple AI solutions can address real-time last-mile delivery issues which can assist firms to design a more sustainable & customer-centric supply chain. Future research should focus on exploring additional determinants of AI adoption and the integration of AI with sustainable initiatives to further improve LMD services in e-commerce.