What is last mile delivery?
Last mile delivery is the final leg of a shipment, the trip from a local hub to the customer’s door.
The trip from a local hub to the customer’s door.
Many stops, short distances, traffic, and failed deliveries make it far less efficient than long haul transport.
One truck, dozens of stops, missed customers, and tight time windows.
A late or fumbled last mile undoes everything that went right earlier in the chain.
The cost is in the chaos. One truck, dozens of stops, traffic, missed customers, and tight time windows. That last short distance can eat a surprising share of the total shipping cost.
Figure 1. Where the last mile starts and why it costs so much
Restates this article: long haul ends at a local hub, and the last mile runs from there to the customer’s door through many stops, traffic, tight time windows and missed customers. The stops are drawn to illustrate; the article gives no count.
It is also where the customer actually feels your service. A late or fumbled last mile undoes everything that went right earlier in the chain, which is why so much routing and tracking technology aims squarely at it.
Sthenos builds the routing and optimization behind efficient delivery, including an AI route and truck volume optimization platform for a Nordic fleet.
Why is last mile delivery so expensive?
Many stops, short distances, traffic, and failed deliveries make the final leg far less efficient than long haul transport.
- Many stops
- Short distances
- Traffic
- Failed deliveries
Related services: custom software development.
Related in this topic: predictive route pre-planning.
Related reading
Related terms:
- Guide: Multimodal Fleet Optimization: Routing Trucks, Vans, and Cargo Bikes
- Industry: Logistics & Supply Chain
