Last mile delivery describes the final leg of a product’s delivery process, where a parcel is taken from a transportation hub to its final destination, from the supplier to the consumer. It is a term widely used in the logistics and supply chain management industry.
Last mile delivery can be impacted by traffic congestion, remote locations, and the need for flexible delivery times to accommodate consumers. The cost of last mile delivery can account for as much as 50% of the total delivery cost.
This is an important part of the supply chain because it directly impacts customer satisfaction. The efficiency and effectiveness of last mile delivery can make or break a customer’s experience. For example, a seamless and timely delivery can lead to a positive experience, increasing the likelihood of repeat business. A delayed or mishandled delivery could lead to customer dissatisfaction and potential loss of business.