Last Mile
Last Mile refers to the final segment of a delivery, from a local distribution hub to the end customer's door. It is operationally the most expensive and complex part of e-commerce logistics — accounting for 40-60% of total fulfilment cost. Density (stops per route), urban access, time-window commitments, and customer absence at delivery all conspire to make last mile difficult to optimise.
Modern last-mile platforms manage: driver/vehicle assignment, dynamic route optimisation, real-time GPS tracking, scan-and-deliver, photo / signature capture for proof of delivery (POD), returns handling, customer notifications, and rating capture. AI route optimisation factors traffic, delivery time windows, and historical performance.
The last mile is where most of the delivery cost — and most of the customer experience — actually lives. It is the hardest leg to optimise (stop density, urban access, missed deliveries) and the one customers judge you on, which is why it attracts so much route-optimisation and AI attention.
Why is the last mile so expensive?
Because it is low-density and unpredictable — individual stops, urban access, tight time windows and customers who are not home all raise cost per delivery. It can account for 40–60% of total fulfilment cost.
How is last-mile delivery optimised?
With route and load optimisation, real-time tracking, proof of delivery and AI that factors traffic, time windows and historical performance to cut miles and missed deliveries.