Last Mile 2.0: Why Attention to Detail Matters and How AI Changes the Game
How often have you thought, "Phew, logistics is really a tough nut to crack"? Especially with the last mile, it often gets tricky. In our latest podcast episode, we had Ben Stolze, the founder of Urbify, as our guest. He gave us a really deep dive into the subject and shared some great insights that should make all of us – whether you're a shipper or a consignor – think.
What Ben Learned from the Parcel Delivery Driver
Ben told us that his journey in logistics didn't start in an office, but that he himself delivered Rewe parcels for two weeks – six days a week, double shifts! That wasn't planned, but precisely this hands-on experience showed him and his team where the real pain points lie. Not only for the customers, but also for the people who are on the road every day. At Urbify, by the way, every new employee has to experience this – from the warehouse to delivery. This not only creates appreciation, but also constantly brings forth fresh ideas.
Why In-house Development in Logistics is Gold
Urbify decided early on to develop its own technology platform instead of relying on standard solutions. That was a huge effort, but it paid off. Why? Because it allows them to perfectly address their use cases and react extremely flexibly to customer needs. Imagine you're on a shelf solution – you quickly hit limits. In logistics, technical shortcomings often lead to high manual effort. Urbify wanted to avoid that from the start and relies on technical solutions for everything to handle large volumes with a lean team.
AI in the Last Mile: More Than Just Route Planning
Sure, AI is on everyone's lips, but Ben gave us a super concrete example of how Urbify uses AI – and that's really a game changer: routing optimization. While classic route planners rely on static parameters, Urbify's AI analyzes countless influencing factors: weather, city events, package condition, delivery options, and even the type of building. The trick? A target-actual comparison that continuously adjusts the planning parameters. This way, every single package in every region is planned individually – every day anew. The result: cost and quality optimization at the highest level.
Ben also gave a cool example: Their original assumption was that a driver had exhausted their experience after 15 tours. Through AI analyses, they found out: It's only nine to ten tours! This is probably because the app is now available in multiple languages and the language barrier is eliminated. A small adjustment that has huge implications for the efficiency of onboarding.
Proof of Delivery 2.0: More Security Through Technology
Another hot topic Ben touched on is Proof of Delivery (POD). It's not just about getting a signature. Urbify is working on a "severity level" for deliveries. This means:
- Geofence check: Was the driver really in the delivery area?
- Documentation: Photo and/or signature. For signatures, an AI-based check is even performed to recognize "scribbled handwriting" as invalid.
- Pin-Code-Delivery: The recipient receives a code that they must give to the driver. This is super relevant for sensitive shipments like e-prescriptions.
This multi-stage verification increases the certainty that a delivery has been made correctly.
From Parcels to Tasks: The Future is Agnostic
Urbify's software architecture is a real highlight. Originally planned for food deliveries and tours, they had to significantly increase granularity for parcel delivery – down to the parcel level. But now they're going a step further: They're thinking in "tasks". Whether it's delivering a package, picking it up, mowing a front yard, or assisting in nursing care – their software can plan, organize, and document all of it. This makes them technologically agnostic to the type of task.
A Look into the Future: Pharma, Two-Man-Handling & More
Urbify is not keen on extreme geographical expansion. Instead, they want to further expand their service offering for customers. Their goal is, for example, to become the absolute leader in the pharmaceutical sector. They see many opportunities in the combination of technology and operations, but also as a pure SaaS solution for other customers. Pharmaceutical wholesale, two-man-handling, or car parts – these are just some of the exciting areas they have in mind.
Ben also emphasizes the difference to the big players who focus heavily on "out of home" deliveries (lockers, parcel shops). For perishable goods or sensitive products, however, home delivery is indispensable. Urbify focuses on precisely these demanding shipments and promises a delivery rate of over 98% on the first attempt – and that within a tight time window.
Overall, this was a super exciting insight into how one can conquer a niche in a seemingly saturated market through technology, customer focus, and operational excellence.
Learnings for Logistics Service Providers: Why customer proximity and tech pioneering spirit pay off
Ben Stolze has shown with Urbify how to create real added value in a competitive market. If you are a logistics service provider, you should take a close look at Ben's approach. It's not just about moving packages, but about understanding your customers' challenges and addressing them technologically. As Ben demonstrated: Go out yourself and understand where the shoe pinches. This operational proximity is gold and provides you with the basis for innovations. Rely on your own tech development where it makes sense – that gives you the flexibility that standard solutions often lack, and helps eliminate manual processes. And most importantly: Be brave with AI! Route optimization is just the beginning. Think about smart POD solutions or "task-based" services that transform you from a pure parcel service provider to a holistic problem solver for your customers. The future belongs to those who not only deliver but also think along and lead the way.
