Last mile

The expression “last mile” is linked to a logistics concept that refers to the last segments of the supply chain and home order delivery: the last mile is not only the most difficult to organize but also the most costly.

A real business challenge, the last mile is a very important element, particularly with the advent of ecommerce. The growing number of packages delivered every day means that carriers and professionals involved in distance selling are constantly trying to innovate to improve their last-mile service. What's more, the last mile accounts for 25-30% of total delivery costs and can have a significant effect on the total distribution cost of a product.

Often starting at a merchant’s local distribution center, this phase of the delivery process is critical, as it raises a number of issues around the delivery of an order: the efficiency of the carrier, the availability of the recipient customer, the size of a mailbox, etc.

What also leads to a higher rate for the last mile is that, at that point, the package is no longer handled jointly with other orders. The pooling of package transport has come to a halt.

The term "last mile" is an image that puts into perspective the problems associated with the end of cost sharing at the end of the delivery process, but also the fact that the recipient must be available to receive the package. Although the capabilities for tracking packages are more advanced today, coordinating deliveries can still be challenging.

In practice, some geographical areas can lead to deliveries that are more time consuming, as they can be up to 10 or 20 miles away from another package, while others, particularly in large cities, are only a few hundred feet away.

To minimize the challenges posed by this logistical problem, relay point delivery can facilitate this final stage.

For ever greater efficiency and availability, carriers are working hard to ensure that packages arrive at their destination as smoothly as possible at the end of delivery.

In addition to the purely logistical issue of the last mile, the global context is prompting us to rethink this stage of package delivery for ecological reasons. Most carriers use polluting vehicles to deliver just a few packages in almost empty transport, but they also use packaging that contains a lot of non-recyclable materials.

Other problems linked to consumer preferences in terms of deliveries also impose themselves on online retailers: certain target groups of customers prefer relay point delivery, while others swear by home delivery.

For both professionals and individuals, the last mile is a central issue in the order cycle and the customer experience, and it’s an essential step for companies in satisfying all shoppers when it comes to order fulfillment.