What is Last Mile Delivery?

Quick Summary:

Last-mile delivery is the final stage of getting goods to customers, often from a local depot to their home or business. It’s often the most complex and costly part of the supply chain. This article explores what last-mile delivery is, why it’s challenging, and how companies can improve it using technology, customer engagement solutions, and smart logistics planning. 

What is Last-Mile Delivery? 

Last-mile delivery refers to the final leg of a shipment’s journey, this is usually from a local distribution centre to the customer’s doorstep. This could be a home, a retail store, or a business address. 

Common Examples: 

• Parcels delivered to homes by vans or cars 
• Bulk shipments to business premises via heavy goods vehicles (HGVs) 

Steps of Last-Mile Delivery 

Once the customer has placed their order, the goods make their way to the final warehouse, where the last mile begins. 

1. Order Fulfilment: Orders are processed from the receipt of goods (including cross-docking) through to preparation for delivery. 
2. Picking and Packing: The order is prepared in the warehouse, laying the foundation for on-time delivery. 
3. Loading and Dispatch: Shipments are organised to prepare for efficient dispatch. 
4. Routing and Navigation: Delivery routes are planned manually or optimised automatically with route optimisation software. 
5. Delivery Execution: Drivers use mobile delivery tools such as navigation, barcode scanning, digital signatures, and photo capture to ensure accurate and verifiable handovers, generating a proof of delivery. 
6. Customer Handover: The package is handed over to the customer or may be left in a safe place or designated area. 

Why is Last-Mile Delivery Challenging? 

The last mile is the most unpredictable and expensive part of the logistics chain.
Factors that complicate it include: 

• Urban congestion: HGVs may not be practical in cities, read about the urban logistics challenge 
• Rural distance gaps: Deliveries in rural areas require more travel time and fuel between stops 
• Multiple stops: Inefficient routing increases time and cost 
• Customer availability: Missed deliveries reduce first-time success rates 

Discover more about last-mile solutions 

What is the "Last-Mile Delivery Problem"? 

Efficiency is the core challenge for any last-mile delivery operation. Deliveries often require numerous stops with varying distances between them. If delivery density is low (few deliveries in a given area), then cost per delivery will rise. 

During the pandemic, demand surged, exposing inefficiencies. Even now life has returned to normal, online sales account for over 26% of retail sales and fewer people work from home. This highlights the continued importance of improving last-mile logistics. 

FAQ's about Last Mile

• What is the difference between last-mile and final-mile delivery?

  These terms are often used interchangeably to describe the same delivery stage: everything that takes place in the last warehouse and to the final recipient.

• What’s the difference between the first-mile and last-mile delivery?

  The first mile includes moving goods between the manufacturer or supplier and the distributor, followed by transportation to the warehouse. While the last mile of delivery encompasses everything between the last warehouse and the final recipient. 

• Why is last-mile delivery important?

  Last-mile delivery is important because it directly affects customer satisfaction, delivery costs, and brand reputation. (Read: Overcoming the challenges of last-mile delivery) 

  In addition, the final mile is one of the most costly aspects of logistics, so it has a disproportionate effect of overall operational spending.

  Read Overcoming the challenges of last mile delivery.

• How is the last mile related to urban logistics?

  Many last-mile deliveries take place within an urban environment, magnifying the existing challenges of last-mile delivery. Specialised vehicles may be needed to content with small spaces and environmental regulations.

  Read about the Urban Logistics Challenge

• Can software really improve last mile delivery performance?

  Yes. Modern tools can reduce fuel use and CO2 consumption, cut delivery times, and increase success rates.

  Read: 6 ways Machine Learning can enhance fleet operations

Need help improving your last-mile delivery?

Contact us to explore how Descartes’ delivery management solutions can streamline your operations and enhance customer satisfaction.