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Extracting Financial Value From Last-Mile Delivery: Part Three

The Dispatch Team

June 6, 2024
June 12, 2024
Last Updated

Last-Mile Delivery Environmental Challenges & Benefits 

In part three, we’re discussing the environmental benefits linked to last-mile delivery with Dispatch Chief Financial Officer, Serge De Bock. As we navigate a world increasingly conscious of our ecological footprint, it's vital to understand how innovations in delivery logistics, particularly through last-mile technology companies like Dispatch, contribute to a greener and more sustainable future.

Q: What are the environmental benefits associated with last-mile delivery?

A: According to the Environmental Protection Agency (EPA), the largest source of greenhouse gas emissions in the U.S. stems from burning fossil fuels for electricity, heat, and transportation. Transportation alone accounts for 28% of this total. Addressing the environmental impact of transportation is pivotal in the broader context of reducing emissions. That’s the equivalent of about 1,776 million metric tons of CO2. For reference, a single metric ton is about the size of a single-family home in the U.S. 

Dispatch recognizes this responsibility and is actively working to reduce the number of vehicles on the road, miles driven, and overall gas consumption. Our commitment is not just about efficient and cost-effective deliveries but also about improving our ecological and social footprint. 

Delivery Vehicle Usage 

One key aspect is maximizing vehicle usage. Dispatch's platform optimizes delivery routes, lowering fuel usage and driver times. On average, a Dispatch customer in 2023 saved 160 miles per month, or 1,920 miles per year, per vehicle. 

Cumulatively, Dispatch has saved our customers an astounding 78 million miles. These savings translate not only to reduced costs but also to significant emission reductions and a positive impact on the planet. By potentially bundling deliveries and offering multi-stop options, we can extend those savings even further by collaborating with our customers and delivery partners.

Delivery Sustainability 

In addition to optimizing delivery routes, Dispatch is committed to implementing sustainable practices within our solutions. For example, we offer an optional feature for pallet and packaging disposal upon delivery. This feature not only streamlines operations for our customers but also reduces waste and minimizes the environmental impact of the entire delivery process. To date, Dispatch’s pallet and packing disposal service has been used by more than 250 organizations for over 18k deliveries. 

Social Benefits of Last-Mile Delivery

When discussing ESG (Environmental, Social, and Governance) practices, the environment is just one component for a greater impact. Dispatch is also committed to social benefits which include fair wages for independent contractor drivers and Dispatch employees nationwide, ensuring compliance with state laws and government regulations, and contributing to a more equitable and sustainable work environment. 

Dispatch provides an environment where gig drivers can build their own businesses and earn a living while working schedules that fit their family situation or lifestyle. Dispatch is committed to supporting our employees and driver base beyond just pay, as we offer perks and professional resources for our people.  

Dispatch Delivery Efforts 

Overall, optimized last-mile delivery can drive significant environmental benefits for the economy, and Dispatch is at the forefront of this positive change. By optimizing routes, reducing miles driven, and committing to sustainable practices, we aim to contribute to a greener future. Our commitment extends beyond efficiency; it's a dedication to environmental sustainability, social responsibility, and embracing a holistic approach to modern delivery logistics.

This was the third and final part of our financial-driven blog series. Thank you for exploring the different aspects of last-mile delivery with us. Here's to a future where efficient logistics, last-mile innovation, and environmental consciousness go hand in hand.

If you haven’t already, check out Extracting Financial Value From Last-Mile Delivery: Part One and Part Two, where we cover the evolution of last-mile delivery and internal fleets vs outsourced deliveries. Visit our website for more information about Dispatch and how we can transform final-mile deliveries for your business.

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