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. This critical phase is where much of the customer experience is concentrated, 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.
However, it is also the part more complex, variable and costly of the entire logistics chain. Delays, missed deliveries, delivery saturation or returns incidents can multiply costs and negatively affect the customer experience.
At CeleritasWe have developed a flexible, traceable and scalable last mile model that responds to new digital consumer habits and improves eCommerce profitability.
The last mile (or last mile delivery) refers to the FINAL ROUTE that a parcel makes before it reaches its final delivery point, be it a home or a collection point.
This is the most critical moment for three reasons:
It is the only direct contact between logistics and customer.
It concentrates the highest percentage of incidents.
It accounts for between 40 % and 60 % of total logistics costs.
Optimising it is therefore not just an operational issue: it is a competitive advantage.
Why is the last mile so important in eCommerce logistics?
The acceleration of online commerce has forever changed the way customers expect to receive their orders:
Immediacy (orders within 24/48 hours).
Flexibility (choose when and where to pick them up).
Full traceability (real-time information).
Simple return process.
The last mile is the link where these expectations are met... or not.
An efficient last mile:
- Reduce missed deliveries.
- It reduces operating costs.
- Minimise complaints.
- Increases customer satisfaction.
Reduces up to 30-40 % missed deliveries.
Allows deliver several orders in one stop.
Expedite returns.
It offers more freedom to the consumer.
Reduce traffic, emissions and costs, and improve eCommerce loyalty.
Modern solutions to optimise the last mile
Leading eCommerce companies are migrating to more flexible, sustainable and scalable models:
1. Collection points and convenience points
Delivery in networks of collection points is the fastest growing trend because:
Reduces up to 30-40 % missed deliveries.
Allows deliver several orders in one stop.
Expedite returns.
It offers more freedom to the consumer.
It reduces traffic, emissions and costs.
At Celeritas, we have a of the most extensive and capillary networks in Spain.with thousands of locations within 3 km of the end customer.
2. Real-time traceability
Providing full visibility of the package is a requirement of the digital customer.
Therefore, Celeritas integrates:
Systems of online tracking.
Automatic updates at each event.
Geolocation of delivery drivers.
Delivery confirmation with PIN CODE.
More information equals fewer incidents and fewer queries to support.
3. Technology integration with eCommerce
The last mile becomes efficient when the eCommerce platform and the logistic operator speak the same language:
APIs (Webservice)
FTP
Own web tool.
Systems connected to collection and transport points.
This allows information to be automated, errors to be reduced and incident resolution to be accelerated.
4. Hybrid models (home + collection points)
The delivery driver is no longer the only solution: Mixed models make it possible to offer the customer several alternatives and adapt to their lifestyle.
5. Route optimisation and Big Data
To plan a more efficient last mile, Celeritas employs:
Big Data for pattern detection.
Automation of alerts.
Friction point analysis.
Continuous improvement based on real data.
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 whether 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 such as 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.
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.
Implementation of urban warehouses 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.
How Celeritas manages the last mile
Celeritas' value proposition is based on three pillars:
1. Network of collection points and national coverage
Thousands of strategically distributed collection points, which:
They reduce costs.
Minimise missed deliveries.
They allow for swift returns.
2. Full traceability
From collection to delivery or return, with:
Events updated in real time.
Connected PDAs of drivers.
Delivery PIN.
Full integration with eCommerce.
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?
Indicates that the package has been handed over to the company in charge of the final distribution to the customer.
Is there last mile software?
Yes, there are management solutions that optimise the delivery process, such as real-time routing and tracking software.
Rely on Celeritas Transporte, for your transport solutions y warehouse and become Celeritas Point.