What is Last Mile Delivery?
Last mile delivery (also called final mile) refers to the final segment of the delivery journey-from a distribution center, store, or local hub to the customer's doorstep. It's often the most expensive and complex part of the supply chain.
Why Last Mile is Challenging
- High cost per delivery (up to 53% of total shipping cost)
- Low density, many stops
- Customer time expectations (same-day, next-day)
- Failed delivery attempts
- Urban congestion and access issues
- Package security concerns
Last Mile Solutions
- Local hubs: Forward positioning of inventory
- Crowdsourced delivery: Gig economy drivers
- Parcel lockers: Pickup points for customers
- BOPIS: Buy online, pickup in store
- Route optimization: AI-powered delivery routes
- Delivery windows: Scheduled appointments
Last Mile Metrics
- Cost per delivery
- On-time delivery rate
- First attempt success rate
- Customer satisfaction score
- Stops per route
Future of Last Mile
- Autonomous delivery vehicles
- Drone delivery
- Micro-fulfillment centers
- Electric delivery vehicles