Last Mile Delivery in Logistics: A Comprehensive Review

In logistics, deliveries have become a significant focus as companies strive to meet customer demands for faster, more reliable service. This phase poses significant challenges, including:

• high costs
  
  
• traffic congestion
  
  
• delivery inefficiencies
  

Unfortunately, it is felt more in densely populated cities and remote areas across Canada. Thus, this blog explores the latest innovations, technologies, and strategies you can use to overcome these obstacles.

Key Takeaways

• Last-mile delivery is the final, costliest part of logistics. It requires efficient routes and processes to cut fuel and labour costs.
  
  
• Good last-mile logistics meet high customer expectations and boost productivity, especially in Canada’s cities and remote areas.
  
  
• Traffic, high costs, and inefficiencies pose challenges in final-mile deliveries. Bad weather and tech issues can also cause delays, so companies must tackle these to keep customers happy and control expenses.
  
  
• When done right, last-mile logistics make delivery easier, lower costs, and increase customer satisfaction. They help companies stand out and build brand loyalty with dependable, fast service.
  

What Is Last or Final-Mile Delivery?

Last-mile delivery, or final-mile delivery, refers to the final step in getting a package to the customer. It involves moving items from a local hub or warehouse to the customer's home or business. This part is often the most expensive and challenging for delivery companies due to factors like:

• traffic
  
  
• fuel costs
  
  
• customer location (whether in a busy city or a remote rural area)
  

Customers demand to receive their orders faster, so last-mile delivery is key to ensuring their packages arrive quickly and safely. When done right, this meets the growing expectations of customers across Canada.

The Last-Mile Delivery Process

Last-mile delivery is the final step in delivering packages from a local hub to the customer’s door. Here's how the process goes:

1. Order Processing

The first step happens when the customer places an order through an online platform or directly with the company. Once the business receives the order, they will begin to process it by doing the following:

• Confirm the details.
  
  
• Check the product availability.
  
  
• Prepare the item for shipment.
  
  
• Package the product securely.
  
  
• Print the shipping labels.
  

Every step ensures everything is ready for the next step. After processing, the business sends the order to a local hub or warehouse, where it will be sorted and prepared for delivery.

2. Local Hub Sorting

Once packages arrive at the local warehouse or distribution centre, the staff will sort and organize them for delivery. This process involves the following tasks:

• Scan each package to identify its destination.
  
  
• Group items based on their delivery locations.
  

Sorting ensures that the staff arranges the packages in the most efficient order for drivers. These steps save them time and reduce travel distances. After sorting, the staff prepares the packages for loading on delivery vehicles, indicating they are ready to be delivered to their final destinations.

3. Route Optimization

Route planning is crucial to maximizing efficiency. The shipping carriers carefully plan and optimize the delivery routes to ensure the process flows smoothly. This process involves this specific step:

• Use mapping software or GPS technology to find the most direct paths to each destination.

This process allows delivery service providers to reduce travel time, avoid traffic congestion, and minimize fuel costs. The goal is to ensure drivers can complete their deliveries in the fastest and most cost-effective way. In return, it improves customer experience and the company's productivity.

4. Delivery Execution

The driver or courier picks up the sorted packages from the local distribution centre and begins the delivery route. They travel to each customer's home or business, ensuring packages arrive safely and on time.

This process involves the courier (may) following the pre-planned route, resulting in two possible outcomes:

1. They stop at each location to hand over the package.
   
   
2. They may leave the package in a designated safe spot if no one is available to receive it.

Either way, both steps should ensure the last-mile delivery process is efficient.

5. Delivery Confirmation

When the customer has already received the package, they usually confirm receipt. They do this by either:

• Providing a signature
  
  
• Completing a digital confirmation on the courier's device.
  

This step ensures that the package has reached its intended final delivery destination safely. In some cases, especially with contactless deliveries, the courier may take a photo or leave the package in a secure location. They will then notify the customer through a text or email.

Once confirmed, the last-mile delivery process is officially completed, and the transaction is closed.

Challenges of Last-Mile Deliveries

Not all deliveries are the same. Last-mile deliveries can face several challenges that can affect the brand's reputation. Here are the issues you need to watch out for to avoid stress during last-mile deliveries:

High Last-Mile Delivery Cost

High delivery cost is the most common last-mile delivery problem. Imagine travelling to multiple locations. Did it cost you much? If you answer yes, the same thing can happen to shipping carriers.

Delivering to various locations, particularly in remote or rural areas, significantly raises costs for last-mile carriers. There are plenty of reasons why this happens, such as:

• The drivers have to travel longer distances, which increases fuel consumption. It also takes more time to complete the transactions.
  
  
• The labour covering large areas or hard-to-reach places adds to overall expenses.
  
  
• Operational costs, such as vehicle maintenance and scheduling, also increase as delivery companies work to manage these extended routes.
  

All of these factors make last-mile deliveries more expensive to complete efficiently.

Traffic Congestion

Another issue that a last-mile carrier can face is traffic congestion, especially in urban areas. These locations frequently face heavy traffic, especially during peak hours. Unfortunately, this situation can cause significant delays for delivery drivers.

Some of the problems a delivery driver can encounter are:

• Going through congested streets
  
  
• Waiting at long traffic lights
  
  
• Dealing with unexpected roadblocks or construction
  

These issues can slow down the shipping process, leading to longer delivery times. It can also disrupt the planned schedule for the day. As a result, companies may struggle to meet promised delivery windows, impacting customer satisfaction and overall efficiency.

Delivery Delays

Unlike the other two challenges mentioned earlier, this one is not easily avoided. Unexpected issues can cause unexpected delays in the delivery process.

Some of them are:

• bad weather
  
  
• roadblocks
  
  
• technical problems
  

Each can affect your customers' satisfaction. For instance, heavy rain, snow, or icy conditions make roads difficult to travel, slowing down drivers. Meanwhile, roadblocks or construction can force drivers to take longer routes, adding more time to deliveries.

On the other hand, technical problems, such as vehicle breakdowns or issues with delivery software, can also disrupt schedules. These factors often result in late deliveries, making it harder to meet customer expectations.

Failed Last-Mile Delivery Services

Sometimes, customers are not available to receive their packages. The common reasons why this happens is because of the following:

• The customers are away from home.
  
  
• The customers are at work.
  
  
• The customers are otherwise occupied.
  

In such cases, the driver cannot complete the delivery, resulting in a missed or failed attempt. The company then needs to reschedule the delivery for another day or arrange a pickup option, which adds time and costs to the process.

Complex Route Planning

Delivery drivers often have to manage multiple stops in one trip, making staying on schedule challenging. Each stop requires time to find the correct address and parking and deliver the package.

Some locations, such as rural areas, apartment buildings, or areas with limited access, can be challenging. Travelling through narrow streets, neighbourhoods, or long driveways can slow delivery. Unfortunately, it makes it more difficult for drivers to complete all their deliveries on time.

Environmental Impact

As the demand for deliveries grows, so do the environmental impacts. The shipping logistics industry is one of the biggest contributors to carbon emissions worldwide. Every delivery vehicle releases greenhouse gases, contributing to air pollution and climate change.

When routes are inefficient, it creates a domino effect that causes a series of adverse effects:

• Drivers travel longer distances.
  
  
• Drivers backtrack between stops.
  

Both of these situations can lead to an increase in fuel consumption, which will result in even higher emissions. However, shipping companies can still take action. It will only require careful planning and route optimization to limit unnecessary driving.

This will help them make deliveries as eco-friendly and efficient as possible.

Rising Customer Expectations

As mentioned earlier, customers today want nothing but fast shipping. They expect their packages to arrive quickly, often within a day or two. More than that, they also prefer low-cost or even free delivery options.

This growing demand for fast, affordable delivery adds pressure on logistics companies to meet these high expectations while keeping costs under control. Indeed, balancing speed with affordability can be challenging. With rising fuel, labour, and operational expenses, this can be a bit of a problem.

Companies must work hard to find efficient solutions to provide the delivery speed and value customers now expect.

Handling Fragile Items

Delivering delicate items requires extra care to reach customers safely and without damage. Some of these items include glassware, electronics, and fragile goods. Delivery teams must handle these packages carefully, especially the process of the following:

• Loading
  
  
• Transportation
  
  
• Unloading
  

This will prevent breakage or scratches. Unfortunately, the risk of damage can be higher during longer routes or when packages are frequently moved between hubs. Protecting fragile items is an ongoing challenge for companies, as damaged deliveries can lead to returns, refunds, and unhappy customers.

Benefits of Last-Mile Logistics

While this experience poses some challenges, it's undeniable that every last-mile delivery experience has its own perks. Here are the advantages of a last-mile delivery:

Increased Convenience

Every last-mile delivery adds convenience by delivering packages directly to the final destination. It saves carriers time and effort when sending items to customer's homes or workplaces.

Customers can receive orders at their preferred address instead of having items picked up from a distant location. This convenience is especially valuable for people with busy schedules or limited mobility.

By simplifying the delivery process, companies make shopping more accessible and enjoyable, encouraging repeat business and helping to build a loyal customer base.

Faster Delivery Times

Optimized last-mile logistics help companies cut down on delivery times. What does this mean? Simple, customers receive their packages faster. This can help businesses meet the rising demand for speedy service.

It can be a business's competitive edge in areas where competition is tough, such as busy cities. Some options can attract more customers and give companies an advantage over others, such as:

• Same-day delivery
  
  
• Next-day delivery
  
  
• Priority shipping
  
  
• Express shipping
  
  
• Expedited shipping
  

As businesses improve their delivery speeds, customers are more likely to return, appreciating the convenience and dependability of a faster delivery experience.

For example:

An electronics store launches a next-day delivery option for its popular gadgets. This faster service sets it apart from other stores. How? It draws in tech-savvy customers who appreciate getting the latest devices delivered to their doorsteps the very next day.

Improved Customer Satisfaction

Last-mile delivery logistics play a big role in maintaining a smooth supply chain process. Where does this lead? It leads to happy customers. But how?

When people get their orders as promised, they feel valued and are more likely to trust the brand for future purchases. A positive delivery experience leads to various positive results, such as:

• Customer loyalty
  
  
• Repeat orders
  
  
• Recommendations to friends and family
  

In today's market, efficient last-mile logistics help companies build and maintain strong customer relationships, which are key to lasting success.

For example:

A local clothing store offers quick, reliable delivery, which has made customers come back and shop from them, knowing their items will arrive when expected. This trust makes shoppers loyal and even encourages them to recommend the store to others.

Cost Reduction

Making last-mile logistics more efficient can save companies a lot of money.

For example:

A small transportation hub uses route optimization software to arrange deliveries for multiple orders in one trip. This cuts down on fuel and delivery personnel costs. As a result, they can keep shipping costs low and make customers happy with affordable delivery service.

Here's another picture to consider:

A local pharmacy installs GPS tracking to reduce extra driving and fuel use in its delivery vehicles. By cutting back on these expenses, the pharmacy can offer cheaper delivery rates to customers, which helps it compete with larger chains.

Competitive Advantage

Efficient last-mile delivery gives brands an edge in today's fast-paced online shopping world. Since customers want quick, easy delivery, businesses that are good at last-mile delivery stand out from their competitors.

Fast, reliable shipments at fair last-mile delivery costs attract more customers and keep them returning. This advantage helps companies grow their market share. How? Simply put, their delivery services make them a top choice for shoppers who want a dependable, convenient experience.

Imagine this:

You offer same-day delivery at fair prices to your customers in the area. Meanwhile, your competitors provide standard delivery options at high costs. Who will the online shoppers choose?

Of course, the quick and affordable service will be the popular choice over stores with slower shipping.

Here's another example:

An online bookshop ensures that every order is delivered on time with no extra fees. Your customers will highly appreciate this as they prefer reliable and affordable service. Because of this, they will likely order again and recommend the shop to friends, helping it stand out in a crowded market.

Operational Efficiency

Efficient last-mile delivery gives brands an edge in today's fast-paced online shopping world. Since customers want quick, easy delivery, businesses that are good at last-mile delivery stand out from their competitors.

Fast, reliable shipments at fair last-mile delivery costs attract more customers and keep them returning. This advantage helps companies grow their market share. How? Simply put, their delivery services make them a top choice for shoppers who want a dependable, convenient experience.

Imagine this:

You offer same-day delivery at fair prices to your customers in the area. Meanwhile, your competitors provide standard delivery options at high costs. Who will the online shoppers choose?

Of course, the quick and affordable service will be the popular choice over stores with slower shipping.

Here's another example:

An online bookshop ensures that every order is delivered on time with no extra fees. Your customers will highly appreciate this as they prefer reliable and affordable service. Because of this, they will likely order again and recommend the shop to friends, helping it stand out in a crowded market.

Enhanced Brand Reputation

Delivering packages on time and without problems can influence brand reputation. You might not notice it, but these subtle things can make the business more reliable. They create a positive delivery experience, often leading to good reviews and recommendations.

A strong track record for dependable delivery helps a brand stand out in a busy market.

For an example:

A small clothing brand offers consistent, on-time delivery. This impresses customers with its dependable service, and as a result, customers return to buy again. Additionally, they shared their good experiences with others, helping the brand build a loyal following.

Final Thoughts

In conclusion, last-mile delivery is critical in logistics. It shapes how customers experience and value a brand. As online shopping grows and customer expectations rise, the need for efficient, reliable last-mile solutions has never been greater.

From innovative technology to cost-saving strategies, companies that optimize last-mile logistics can stand out in a crowded market. They can offer faster and more affordable delivery options.

As brands focus on strong last-mile delivery practices, they can improve their bottom line and build long-term customer loyalty. Ultimately, success in last-mile delivery is about balancing speed, cost, and quality—ensuring every package arrives on time and as expected.

How Can Stallion Help Your Business?

If you're looking for a shipping partner, check out Stallion. We designed our fulfillment and shipping services to help your business stand out in today's competitive market. Our team offers efficient delivery options that keep customers satisfied and returning for more.

So, whether you're looking to:

• Reduce costs
  
  
• Enhance delivery speed
  
  
• Improve customer
  

You can trust that Stallion has the expertise and technology to improve your logistics. Are you ready to take your business to the next level? Discover how Stallion can support your goals—contact us today!

Claudine Joy Rada

Candy Rada is a dedicated professional with tons of experience in content writing for the shipping industry. As a literature degree holder, she excels in creating engaging content with strategies that enhance brand visibility. She enjoys playing with her cats, reading dystopian books, and joining trivia games in her free time.