Last Mile Delivery
Definition
Last mile delivery is the final leg of a shipment's journey, from a local depot or distribution center to the end customer's door. It is typically the most expensive and operationally complex portion of the delivery chain.
In Practice
The last mile is dominated by stop density economics. A linehaul truck moves thousands of units per driver hour; a delivery van may make 120 stops a day, each with parking, walking, and proof-of-delivery steps. That is why the last mile commonly accounts for 40 to 55 percent of total delivery cost despite covering the shortest distance.
Planners care because customer experience lives here: promised delivery windows, failed-attempt rates, photo confirmation, and returns pickup all shape satisfaction scores. Choices include parcel carriers, regional couriers, gig fleets, and lockers or pickup points, each trading cost against control.
A typical example is an online furniture retailer that ships bulky items via a linehaul network to a local hub, then uses a two-person delivery team for scheduled in-home delivery, tracking on-time percentage and damage claims as its core last-mile metrics.
Related Calculators
Related Terms
Route optimization is the process of determining the most efficient sequence of stops and paths for delivery vehicles, minimizing distance, time, or cost while respecting constraints like time windows, vehicle capacity, and driver hours.
Proof of DeliveryProof of delivery (POD) is the documentation confirming a shipment was received at destination, traditionally a signed delivery receipt and increasingly an electronic signature, photo, or GPS-stamped scan. It establishes when, where, and in what condition goods were delivered.
CarrierA carrier is a company that physically transports freight, such as a trucking company, ocean line, airline, or railroad. Carriers contrast with intermediaries like brokers and forwarders, who arrange transport but do not operate the equipment.
Reverse LogisticsReverse logistics is the process of moving goods backward through the supply chain, from the customer toward the seller or manufacturer, for returns, repairs, recycling, or disposal. It covers everything from return shipping to disposition decisions.