Last Mile Delivery

Illustration for Last Mile Delivery, General

The final leg of a shipment, from the last distribution point to the end recipient's address.

In depth

The last mile is short but disproportionately expensive, routinely accounting for a large share of total delivery cost. The reasons are structural: many stops with small drop sizes, urban congestion, restricted access and delivery windows, and failed deliveries that require a second attempt. It is also the only part of the journey the recipient experiences directly, so it carries most of the service perception. Access constraints — no loading dock, narrow streets, appointment-only sites — are where last-mile accessorial charges originate.

Key points

  • The final leg to the end recipient, and a large share of total cost
  • Driven by drop density, access restrictions, and failed attempts
  • The only leg the recipient directly experiences
  • Access constraints generate most last-mile surcharges

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