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The importance of last mile delivery in logistics

Image of a person delivering a package to a customer to denote last mile delivery

Last mile delivery: What is it and how does it work?

The last mile delivery management is the process of how a package gets from the transport hub to its final destination. Last mile shipping includes different modes of transportation and strategically placed hubs for fast and cheap delivery. In order to improve customer satisfaction and efficiency, it is essential to implement last mile logistics solutions for a seamless last mile shipping service while also reducing the delivery cost. 

Why Is last mile shipping so important in logistics?

The delivery executive survey conducted by the Capgemini Research Institute from October–November 2018 reveals that last mile shipping is often the most expensive part of the shipping process. According to the survey the cost split up is as follows: 13% Warehousing, 20% Sorting, 16% Packaging, 41% Last-mile delivery and 11% Remaining supply chain cost. However, incorporating logistics solutions can efficiently streamline the delivery process and ensure quick delivery while also reducing the delivery cost. 

What are the challenges in last-mile shipping?

There are a number of challenges in last mile delivery service including a lack of real-time visibility. This makes it difficult to choose the best shipping routes, consolidate shipments or find the nearest hub. Moreover, high delivery costs is a major challenge because customers abandon carts when there is a high shipping fee and the burden falls on the shippers making it difficult to bear the costs. In addition, if customers feel that their purchase will take too long to arrive, they are likely to cancel their order. This makes it difficult for shipping companies to schedule returns during last mile shipping.

How to improve your last mile delivery strategy?

  • Fleet management software: You can improve last mile delivery with fleet management software as it enhances the transparency and coordination of your last mile shipping service. In addition, such a system provides other features that optimize routes and provide real-time tracking capabilities to make your process even more efficient.

  • Click and collect service: This service is an easy and convenient way for customers to pick up their products at local stores. It helps reduce shipping distance cost, making it a great option for those looking to save money on their purchase while also helping shippers to reduce the number of miles driven for last mile shipping of these products from door to door. 

  • Crowdsourced delivery: Crowdsourced delivery service is more efficient than traditional shipping methods because it uses local drivers to deliver packages in their own communities. This reduces shipping costs, failed deliveries, and increases speed and customer satisfaction.

Let’s Wrap Up!

The last mile delivery service is the final step to get your parcel from the transportation hub to your  personal residence, official address or a retail store. Last mile shipping management is often the most expensive part of the shipping process owing to many factors including lack of real-time visibility and high shipping costs. However, implementing effective solutions like fleet management software, click and collect service and crowdsourced delivery service can help in streamlining the last mile shipping service for greater productivity, low costs and enhanced customer satisfaction.

Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Simplify your fleet operations and payments with our unified fleet management platform.



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