By Retail Brew Staff
less than 3 min read
Definition:
Last mile is the final leg of the supply chain journey, in which goods are moved from a distribution hub to a customer’s doorstep. Often used as a descriptor for “logistics” or “delivery” or even “problem,” the last mile serves as the trickiest yet most essential part of the delivery process, because, well, what’s the point of all the other steps in the supply chain if the product never ends up in the customer’s hands?
The evolution of last mile: Focus on the last mile has grown amid the rise of e-commerce (and rise of consumer expectations surrounding their e-commerce experience), as businesses work to deliver products to consumers as quickly, affordably, and reliably as possible. They often use a mix of transportation methods—vans, electric vehicles, bikes, and even robots and drones—to achieve this.
Last-mile delivery serves as a logistical headache due to the difficult economics; 53% of shipping costs come from the last mile, per EMarketer, but many larger players have found ways to win. Amazon and Walmart have established strong last-mile networks, with innovations from Walmart’s GoLocal white-label home delivery service, which it also offers to retailers lacking last-mile expertise, to Amazon’s Delivery Service Partners and Amazon Flex gig workers. Many other retailers even turn to partnerships with Instacart or Shipt to solve the last-mile problem.
The rise of AI has helped companies ease the last-mile headache, better optimizing their routes and other logistics to succeed.
Last mile in context: “For same-day deliveries, Ship Essential sorts packages on its delivery truck and hands them off on a curb to last-mile drivers,” we wrote in a story where we followed an order from Ship Essential’s warehouse to its final destination (Andrew Adam Newman’s apartment).
Keith Pekau, former mayor of Orland Park, “said he isn’t convinced the community’s retail potential is the main draw. He said the project looks more like a ‘last-mile facility’ that would complement larger distribution centers nearby while giving the e-commerce giant better access to a major consumer market for deliveries.”
