Glossary » Last Mile Delivery

What is Last Mile Delivery?

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Last Mile Delivery simply means the final leg of any journey, when a package arrives at a customer's location. This is the final stage, yet an inseparable part of the entire supply chain. This stage aims at the swift and excellent condition arrival of items.

Most last-mile deliveries occur from a distribution centre to the end user. This is usually the most problematic and expensive stage. It involves focusing primarily on timely delivery to ensure customer satisfaction.

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Why is the Last Mile Delivery Important?

The last-mile delivery is essential for ensuring accurate and efficient e-commerce fulfilment. It ensures that orders reach customers as soon as possible. It is a critical last part of the supply chain that affects customers’ satisfaction and loyalty. Optimising warehouse management and streamlining reverse logistics for returns yield better business outcomes. 

What Difficulties Affect Last Mile Delivery?

One of the major challenges involves traffic congestion existing in urban areas. It leads to a delay in deliveries, causing dissatisfaction amongst customers.

Besides, last-mile delivery is expensive; it takes up to 53% of the total cost of shipping. Other issues like address inaccuracy also result in failed deliveries and increased operational costs.

How Does Technology Improve Last Mile Delivery?

Technology is vital in driving improvement in last-mile delivery. Companies utilise GPS tracking in order to provide real-time information to customers. This provides a reduction in uncertainty while increasing transparency.

Other great tools include route optimisation software that helps in planning efficient routes, saving both time and fuel costs. Even innovative solutions, such as drones and autonomous vehicles, are being tested.

How is Last Mile Delivery Evolving?

The last-mile delivery landscape is constantly evolving. Retailers and logistics firms are collaborating for better solutions. They aim to reduce delivery times and enhance customer satisfaction.

New models like crowd-sourced delivery are gaining traction. These models leverage local couriers to speed up deliveries. The focus is on reducing costs and making the process more sustainable.

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