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Supply Chain Glossary
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Last mile delivery

What is last mile delivery?

Last mile delivery refers to the final leg of the logistics journey, where goods are transported from a distribution center or fulfillment center to the end destination, typically a residential address or retail store. It is considered the most critical and challenging part of the supply chain due to its complexity and impact on customer satisfaction.

How much does last mile delivery cost?

The cost of last mile delivery varies depending on factors such as distance traveled, delivery volume, delivery speed, and any additional services required, such as white-glove delivery or assembly. On average, last mile delivery costs can range from $5 to $10 per package, but this can increase significantly for same-day or expedited delivery options.

How to improve last mile delivery

Improving last mile delivery efficiency requires strategic planning and implementation of various tactics. Utilizing technology such as route optimization software and GPS tracking systems helps optimize delivery routes and minimize delivery times. Leveraging alternative delivery methods such as crowdsourced delivery, lockers, or parcel shops can reduce costs and increase flexibility. Additionally, enhancing communication and collaboration between all stakeholders, including shippers, carriers, and customers, improves visibility and transparency throughout the delivery process.

How to track last mile delivery

Tracking last mile delivery is essential for monitoring shipment progress and ensuring timely delivery. Utilizing tracking software and mobile apps enables real-time visibility into the status of each delivery, allowing shippers and customers to track packages from pickup to delivery. Providing customers with tracking updates, delivery notifications, and estimated arrival times enhances the overall delivery experience and reduces inquiries and complaints.