Last Mile Delivery Logistics Explained: Problems & Solutions

Share :

Boosting Last Mile Delivery Efficiency: Overcoming the Final Challenge

Businesses in the transportation and logistics industry are actively seeking innovative technologies and supply chain models to optimise parcel volume, expedite deliveries, and enhance customer satisfaction. However, the last mile delivery remains a significant pain point for companies, posing considerable challenges. In this article, we will delve into the importance of last mile delivery, the hurdles it presents, and the potential solutions to overcome them.


Understanding the Significance of Last Mile Delivery

The “last mile of delivery” refers to the final step in a product’s journey from the warehouse shelf to the customer’s doorstep. Despite being the most time-consuming and expensive phase, it holds immense importance as it directly impacts overall customer satisfaction.


Decoding the Last Mile Problem

The last mile problem is essentially the inefficiency experienced during this final leg of the shipping process. Tracking a package online only to see it stuck in “out for delivery” status for an extended period highlights this challenge. Typically, the last mile involves multiple stops with low drop sizes, contributing to delays and inefficiencies.

In rural areas, delivery points along a route can be several miles apart, resulting in only one or two packages being dropped off at each stop. In urban areas, although the proximity of stops may seem promising, it is swiftly offset by constant traffic congestion.


The Costs Involved in Last Mile Delivery

Last mile delivery costs make up a significant chunk, around 53%, of the total shipping expenses. As ecommerce continues to surge and customers increasingly demand fast and free delivery, retailers and logistics partners find themselves burdened with bearing these costs. This situation has prompted businesses to proactively seek out innovative technologies and process improvements to tackle this challenge head-on. One such solution that holds promise for last mile delivery is Fin.


Technological Innovations Revolutionising Last Mile Logistics

The gig economy has already introduced consumers to crowdsourcing local services through platforms like Uber, Airbnb, and Postmates. Retailers are now eyeing the potential of crowdsourcing to alleviate their last mile delivery woes, drawn by its low startup costs, asset-light operations, and improved customer experiences.

Crowdsourcing allows retailers, logistics partners, and consumers to directly connect with local, non-professional couriers who utilise their own transportation for deliveries. This approach enables companies to fulfill online orders more efficiently, and customers can receive their items at their preferred time and location. Furthermore, the flexibility of on-demand and scheduled deliveries eliminates the need for multiple attempts, ensuring customers are available to receive their packages.

Automation is another game-changer in last mile logistics. The integration and advancement of delivery robots, drones, and self-driving vehicles are poised to transform the industry. These technologies have the potential to revolutionise drop-offs and enhance the overall efficiency and speed of last mile delivery.

In conclusion, the race to overcome the challenges of last mile delivery continues as businesses strive to meet the increasing demands of ecommerce and customer expectations. Through the implementation of crowdsource technology and the integration of automation, companies can optimise their operations, improve customer satisfaction, and stay ahead of the ever-growing competition. Embracing these advancements is crucial for retailers and logistics partners aiming to thrive in the dynamic landscape of modern commerce.


At Fin, we believe we are the optimal solution to overcome the challenges associated with last-mile delivery. With a comprehensive suite of cutting-edge technologies and streamlined processes, Fin revolutionises the final leg of the shipping process. Fin enables retailers and logistics partners to enhance efficiency, reduce costs, and meet the ever-growing demands of ecommerce. With Fin, businesses can ensure faster, more reliable deliveries, surpass customer expectations, and gain a competitive edge in the dynamic landscape of last mile logistics.


Leave a Reply

Your email address will not be published. Required fields are marked *

Track your order

Scan the code