What is Last-mile Delivery

What is Last-mile Delivery

What is the Final Mile Delivery

Last mile delivery or last mile logistics is a transportation service that implies direct delivery of goods from a distributor to the final destination or a customer. The main purpose of last mile delivery is to provide quick, affordable, and accurate delivery of goods.

With e-commerce growth, the demand for last mile delivery has increased significantly. If the business can not afford a logistics department and a fleet, they outsource it to carriers who provide such services. List of businesses that rely on the last mile delivery the most:

• 3PL companies
• Couriers
• Retail shops
• Food delivery
• Groceries markets with a delivery option
• Department stores with a delivery option
• Florists
• Pharmacy
• Almost any e-commerce business

What is Last Mile Operations

Last mile delivery is a final part of each supply chain. It is the most critical part of the delivery process, and the business is interested to make it as perfect as possible. The whole thing can be broken down into five steps.

• Receiving an order
• Order arrives at the distribution hub
• Order is being designated on the recipient’s address
• Order is scanned before loading into the delivery vehicle
• Order successfully delivered

How Does Last-Mile Delivery Work

As we described above, the whole process goes from receiving an order to the delivery itself. After your order has been accepted and processed, the parcel with your goods is being composed. Then the company courier or the service courier delivers it right into your hands or where you want it to be delivered. 

Last mile delivery is complete when the courier has the proof of delivery. It can be a client\’s signature in papers or a photo (like Amazon or other delivery services do).

What is a Last Mile Distribution Center

When businesses grow, and the amount of ordered products is nowhere to store, distribution centers become handy. The company doesn\’t need to pay for warehousing services and doesn\’t need to share spaces with others.

With a distribution center, businesses can send all packages to it and only from there provide last mile delivery or organize self-pickup. Regional and local distribution centers will allow faster deliveries and save money on logistics.

Last-Mile Delivery Problem

For now, last mile delivery has two problems: it is the most expensive and the most time-consuming part of the delivery process.

In terms of cost, final mile delivery comprises up to 53% of overall transportation cost. It is caused by inefficient supply chains and poor management. Implementing modern logistics solutions and technology will solve most of the problems and lower the cost.

In terms of time, last mile logistics also suffers from weak route planning. Also, delivering small portions of freight to multiple areas could be very time-consuming. Rural areas have delivery points with miles of distance between them. In urban cities, traffic causes constant delays. By planning routes and organizing freight drop areas, businesses can speed up their delivery.