Last mile delivery
Last mile delivery refers to the final step of the delivery process, where goods are transported from a distribution hub or warehouse to the end customer. Traditionally, it is the most expensive, time-consuming, and logistically complex stage in the supply chain.
Who is typically responsible for last mile delivery?
Last mile delivery is usually carried out by parcel carriers (e.g. DHL, UPS, FedEx), postal services (e.g. national post office), third-party logistics providers (3PLs), or retailers and e-commerce companies with in-house transport services (e.g. Amazon).
In some cases, multiple parties collaborate to transport the goods from the warehouse to the purchaser e.g. a 3PL handles regional distribution for a product while a local courier completes the final delivery to the customer's house.
What are the main challenges of last mile delivery?
The main challenges of last mile delivery are:
- Traffic congestion and route inefficiencies
- Failed delivery attempts (e.g. no one home)
- High delivery costs per order (especially in more remote locations)
- Lack of visibility for customers and businesses
- Emissions and sustainability concerns, especially in urban areas
How can companies make last mile delivery more sustainable?
Last mile delivery can be made more sustainable by using:
- Carbon accounting software that provides route optimization tools
- Delivery lockers and pickup points
- Electric vehicles and bike couriers
- Shared delivery platforms e.g. Uber
- Real-time tracking and customer notifications to minimize risk of failed deliveries
Explore other terms like
Last mile delivery
Add CO2 emission calculations to your software and logistics operations
Join 130+ software and supply chain partners in using BigMile for CO2 emission analytics.
