When your online order arrives faster than you expected, there’s a good chance a Global Capability Centre (GCC) was involved in making it happen. Across India and other key hubs across the globe, retail GCCs are quietly reimagining last-mile logistics — the critical, final leg of a product’s journey from a distribution hub to the customer’s doorstep.
This is no small feat. Last-mile delivery is notoriously complex and costly, accounting for up to 53% of overall shipping expenses, according to industry studies. And with rising customer expectations for speed, transparency, and sustainability, retail giants are turning to their GCCs to design, prototype, and scale solutions.
The Technology Edge
Retail GCCs in India, particularly for MNCs, are leveraging emerging technologies like artificial intelligence (AI), Internet of Things (IoT), and robotics to address last-mile challenges.
AI for Route Optimization – GCC data science teams develop predictive algorithms that dynamically plan delivery routes based on real-time traffic, weather, and demand surges. These models don’t just improve efficiency — they help cut fuel consumption and lower carbon emissions.
IoT for Visibility – Sensor-enabled tracking devices give operations teams and customers real-time shipment visibility. GCC engineering units are building platforms that integrate this data with warehouse and delivery systems for seamless coordination.
Robotics for Efficiency – From automated sortation in warehouses to autonomous delivery bots, GCC-led R&D teams are trialing robotics solutions to reduce human intervention and speed up fulfillment.
Case Study 1: Walmart Global Tech India
At Walmart Global Tech’s India GCC, teams are working on AI-powered delivery optimization platforms. These tools use machine learning to analyze customer order patterns, predict high-demand zones, and allocate delivery resources more effectively. This has reportedly improved on-time delivery rates while reducing costs per order.
Case Study 2: Target in Bengaluru
Target’s India GCC plays a pivotal role in the company’s “Drive Up” and same-day delivery initiatives in the US. Engineering teams in Bengaluru develop systems that integrate inventory data with delivery partner networks, ensuring customers receive accurate delivery timelines. They also experiment with micro-fulfillment centers to bring inventory closer to customers.
Case Study 3: Amazon India Development Centre
Amazon’s India-based GCC is deeply involved in last-mile automation projects, including the development of AI models for delivery route planning and the piloting of autonomous sidewalk delivery robots. The center also supports Amazon’s global sustainability goals by designing packaging and logistics solutions that reduce waste.
Sustainability at the Core
Last-mile delivery isn’t just about speed anymore — it’s about doing it sustainably. GCCs are embedding sustainability KPIs into logistics design. For instance, route optimization directly lowers fuel use, while micro-fulfillment centers reduce the distance products travel. Several retail GCCs are also involved in EV fleet integration for urban deliveries.
Why GCCs Are the Perfect Testbed
Global retailers rely on their GCCs because these centers combine access to deep talent pools, advanced analytics capabilities, and the ability to operate in a low-cost yet high-innovation environment. Indian GCCs, in particular, offer 24/7 development cycles and close coordination with both corporate HQs and local logistics partners.
In many ways, retail GCCs are becoming the nerve centers for last-mile innovation. The ideas, prototypes, and platforms built in Bengaluru, Hyderabad, or Pune are not only powering deliveries in New York or London — they’re redefining how the world thinks about getting products from ‘cart to customer.’
References
1. “Walmart Global Tech India focuses on last-mile optimization” – Economic Times
2. “Target India GCC drives global retail innovation” – Business Standard
3. “Inside Amazon’s last-mile delivery experiments” – TechCrunch
4. “The Future of Last-Mile Delivery” – McKinsey & Company
