1 April 2025

Last mile in logistics: what is it and how to improve it?

The last mile is one of the biggest logistical challenges in e-commerce. It represents the final leg of the delivery process, the one closest to the customer, but also the most complex and costly. A large part of the customer experience is concentrated in this critical phase, so improving it not only helps to reduce costs, but can also make a difference in customer loyalty.

In this article we will talk about what the last mile involves and what strategies allow it to be optimised efficiently, sustainably and with a vision for the future.

What is the last mile?

The last mile in logistics is the final stage of the product delivery process. This journey is usually made from a local delivery unit from which routes are organised to the customer's home. It is a fundamental aspect of e-commerce, as it directly influences customer satisfaction.

What processes are involved?

Route planning

Route optimisation is essential to reduce delivery times and operating costs. Advanced algorithms and fleet management software are used to improve route efficiency.

Allocation of resources

Intelligent allocation of carriers and vehicles enables scheduled deliveries to be met and costs to be optimised.

Route tracking

The traceability of each delivery milestone makes it possible to know if the order has been delivered properly or to manage any incident appropriately.

Returns management

Returns handling is also crucial to avoid additional costs and improve the customer experience. Implementing an efficient system like Citibox's allows web shops that are implementing it to make a big leap in quality.

Example of last mile logistics

Examples of last mile can be found in all transport operators but also in some e-commerce platforms such as Amazon, Aliexpress or PC Components, which also have local agencies and carriers to reduce shipping times and improve efficiency.

Importance of the last mile in logistics

The last mile directly impacts customer perception of a company. A fast and efficient delivery service can be a key differentiator in a competitive market. In addition, optimising this phase helps to reduce logistics costs and minimise the environmental footprint.

Main problems

High operational costs due to the dispersion of destinations.
E-commerce logistics involves a greater dispersion of destinations and therefore higher costs.
Lack of real-time visibility.
Problems in the handling of returns.

How to optimise the last mile?

Use of fleet management and route optimisation technologies

Fleet management tools help carriers improve travel efficiency. Route optimisation algorithms analyse factors such as traffic, weather and distance to determine the best possible route, reducing operating costs and delivery times.

Supporting a network of convenience points

Whether in support of home delivery or as a direct option for the consumer, the incorporation of a network of pick-up and OOH (out of home) points, such as Punto Celeritas and Citibox, can solve many of the problems of the last mile, such as the absence of recipients at the time of delivery.

Implementing urban warehousing to reduce distances

Locating warehouses in strategic areas within cities helps to minimise delivery times and improve product distribution. These micro warehousing centres allow for fast and efficient shipments, especially for ecommerce and on-demand logistics.

Use of green vehicles for sustainable deliveries

The use of electric vehicles, cargo bikes and drones contributes to reducing the carbon footprint of last mile deliveries. In addition to being a sustainable solution, it also saves fuel costs and complies with increasingly stringent environmental regulations.

Real-time tracking integration

Tracking solutions allow customers to monitor the status of their orders in real time, improving transparency and confidence in the delivery process. They also help optimise route planning and prevent distribution incidents.

Last mile challenges

Growing demand for fast delivery

The rise of e-commerce has led to increased demands from consumers, who expect same-day or less than 24-hour delivery. Companies must adapt their logistics strategies to meet these expectations without increasing their operating costs disproportionately.

Reducing the carbon footprint of shipments

CO2 emissions from last mile transport represent an environmental challenge. The adoption of alternatives such as electric vehicles, use of renewable energy and route optimisation is key to mitigating the ecological impact of deliveries.

Integrating artificial intelligence to improve efficiency

The use of artificial intelligence and machine learning makes it possible to analyse demand patterns, optimise resource allocation and foresee possible logistical problems. These technologies help to improve delivery planning and reduce errors in the process.

Frequently asked questions and answers

What does shipment delivered to the last mile provider mean?

Indicates that the package has been handed over to the company in charge of the final distribution to the customer.

What does it mean that the package has been accepted at the last mile?

It means that the order has reached the last mile operator and is ready for final delivery.

What is a last mile provider?

It is the company responsible for the final delivery of the package.

What does delivered to the last mile supplier mean?