Lastmile

Last mile refers to the final stage of the delivery process, from a distribution center or fulfillment site to the end customer’s door or designated destination. In logistics and supply chain management, last-mile delivery is often the most visible and variable segment, affecting customer satisfaction and service levels. It encompasses deliveries to homes, offices, parcel lockers, and pickup points, and can involve multiple stops, returns, and special handling.

The last mile is a major cost driver and time consumer within the wider logistics network. Factors such as the growth of e-commerce, demand for faster delivery, urban congestion, incomplete or incorrect addresses, and labor constraints contribute to complexity and higher per-package costs compared with upstream legs like regional sorting or long-haul transport. The “last-mile problem” is characterized by low delivery density, high variability, and sensitivity to customer expectations for speed and reliability.

To address these challenges, retailers and logistics providers use a range of approaches. Micro-fulfillment centers and urban consolidation hubs reduce travel distances. Parcel lockers and pickup points improve first-delivery success and convenience. Fleet optimization, dynamic route planning, and real-time tracking enhance efficiency and ETA accuracy. New models include gig-economy and crowdsourced couriers, as well as experimentation with autonomous ground vehicles and drones for last-mile tasks. Sustainability efforts focus on electrified fleets, load consolidation, and packaging efficiency to lower emissions and traffic impact.

Key performance indicators for last-mile performance include on-time delivery rate, first-attempt delivery success, average delivery time, cost per package, and customer satisfaction. Urban planning, curb-space management, and policy incentives also influence last-mile outcomes.