Navigate Last-Mile Delivery Challenges

Hong Kong's economy, known for its low tax rates and free-market environment, attracts a vibrant consumer base, fueling growth across various sectors. This robust economic setting is particularly beneficial for the online retail industry, which leverages the region’s advanced digital infrastructure to meet the increasing demands of these consumers. 

In fact, from January 2024 to May 2024 alone, online retail sales in Hong Kong reached HK$ 12,333 million, according to the Census and Statistics Department, highlighting the necessity for efficient logistics networks to manage this growth effectively.

However, the need for such networks extends beyond online retail alone; both e-commerce platforms and brick-and-mortar stores (e.g. appliances, furniture, and electronics that require home delivery) increasingly rely on innovative logistics solutions to ensure timely delivery of products. 

Despite the region’s robust infrastructure, the complexity of urban logistics presents considerable hurdles, particularly in last-mile delivery. 

As we proceed, we'll navigate through the different last-mile delivery challenges and offer solutions for businesses to optimise their last-mile delivery strategies, ensuring reliable service in Hong Kong's complex urban landscape.

What is last-mile delivery?

Before we delve deeper, let's first clarify the meaning of last-mile delivery. 

Essentially, last-mile delivery refers to the final step in the logistics chain, where goods are transported from a distribution centre or warehouse to their final destination. This phase is critical for prompt and efficient delivery, directly impacting customer satisfaction.

Understanding last-mile delivery challenges in Hong Kong

According to GovHK, Hong Kong's population exceeds 7.54 million, with a density of 6,910 people per square kilometre as of mid-2023. This high population density leads to crowded streets, making it difficult for delivery vehicles and couriers to navigate and find efficient routes. 

Moreover, the extensive public transport system in the region accommodates over 12.6 million passenger journeys daily via buses, minibuses, and taxis, among others. Such sheer volume of daily commuters further clogs the streets, leading to frequent traffic delays that hinder timely deliveries. 

On top of this, many of Hong Kong’s residential and commercial buildings are high-rises without direct street access, presenting additional challenges for deliveries. As a result, couriers often have to park farther away and carry packages through complex building layouts, navigating elevators, security checkpoints, and multiple stops or floors to reach the recipients. 

This already complex process is further pressured by the rising demand for fast delivery services, necessitating innovative delivery strategies for businesses to optimise their last-mile logistics. 

DHL Express' last-mile delivery solutions

With the various last-mile delivery challenges in the region, DHL Express Hong Kong has adopted various solutions to address these issues and ensure parcels or packages are delivered to customers on time.

• Technological advancements: DHL Express employs artificial intelligence (AI) and machine learning for route optimisation in logistics. These technologies analyse vast amounts of data, including traffic patterns and weather conditions, to determine the most efficient routes for couriers. This reduces travel time and ensures faster last-mile deliveries, enhancing overall service reliability.
• Smart lockers and centralised pickup points: DHL Express utilises smart lockers which allow customers to collect their parcels at their convenience, reducing the need for repeated delivery attempts.
• Walker couriers: In response to the congested urban environment, DHL Express has introduced 'walker' couriers who deliver parcels on foot in densely populated areas like Hong Kong. This method bypasses traffic delays ensuring faster deliveries in areas where vehicle access is limited or impractical.
• Inbound route search system: DHL Express has developed the Inbound Route Search system designed to optimise the sorting and dispatch process. This advancement significantly enhances the accuracy and speed of last-mile deliveries. Effectively navigates Hong Kong's complex and non-standard address system effectively.

By taking advantage of DHL Express' last-mile delivery solutions, businesses in the region can improve their logistics efficiency and meet the high expectations of their customers.

Leveraging multimodal transportation networks

DHL Express effectively utilises Hong Kong’s extensive public transportation system to ensure timely and efficient package delivery. By leveraging AI to optimise delivery routes, DHL Express can identify the most efficient modes of transport for each last-mile delivery. 

This multimodal transportation approach includes the use of electric delivery vehicles to reduce environmental impact or bicycles to navigate through congestion. Additionally, ferries are used for deliveries to islands or less accessible areas. These choices not only enhance last-mile delivery speed but also align with DHL Express Hong Kong’s commitment to sustainability. 

By integrating various transportation methods, DHL Express can meet the logistical challenges of Hong Kong’s urban landscape, ensuring that parcels reach their destinations the most efficiently.

Boost your last-mile delivery strategies in Hong Kong with DHL Express

Facing the complexities of last-mile delivery in Hong Kong necessitates flexible last-mile delivery solutions to effectively navigate the region’s intricate urban environment. DHL Express Hong Kong recognises these challenges and addresses them with precision-engineered logistics solutions tailored to local demands. Our success stems from a profound understanding of local delivery routes, which ensures prompt and efficient logistics service.

Streamline your last-mile deliveries open a business account DHL Express today for a responsive and tailored logistic strategies.