Last-mile delivery is the final leg of the e-commerce supply chain that physically connects brands with consumers through purchase delivery. Goods are transported from a warehouse or a distribution centre and arrive either at a consumer’s home, business, or parcel locker. For the shipper, last-mile delivery is the most complex and expensive part of the product’s journey.

The goal of superior last-mile delivery is to enable every delivery to reach its destination on time, accurately, efficiently, and sustainably.

The best last-mile delivery software programs have the following functionalities:

• Telematics
• Dashcams with hazard detection capabilities
• Driver safety scorecards
• Real-time global positioning system (GPS) tracking
• Geofencing
• Diagnostic fault codes and alerts
• Maintenance reminders
• Automated engine performance recording
• Electronic logging of driver’s on- and off-duty hours
• Instant inspection report generation
• Computerized scheduling, route planning, and dispatch workflows
• Electronic fuel consumption tracking and International Fuel Tax Agreement (IFTA) tax reporting
• Two-way messaging systems
• Load boards
• Mobile (Android, iOS, etc.) and desktop software availability
• Flexible and multiple system integrations

Superior last-mile delivery solutions will usually include:

• 24/7 customer support
• Intuitive reporting dashboards
• Ease of use
• Updates on regulatory changes
• Accurate data capture and analytics
• Scalability
• Configurable to your business requirements
• Unlimited number of users
• Secure and centralized data storage

Last-mile delivery is the final step in the supply chain, where goods are transported from a transportation hub or warehouse to the customer’s location. Here’s how it typically works:

1. Order Placement: The customer orders online or through a mobile app. The retailer or logistics company receives the order and processes it.
2. Order Fulfillment: The order is picked, packed, and prepared for shipment at the warehouse or fulfilment centre. The shipment is then loaded onto a delivery vehicle, such as a truck or van.
3. Route Optimization: The delivery vehicle’s route is optimized to ensure that packages are delivered most efficiently. The route may be optimized based on factors such as distance, traffic, and delivery time windows.
4. Last Mile Delivery: The driver delivers the package to the customer’s location, which could be a residence, business, or public location such as a locker or pick-up point. The driver may also use technology, such as GPS and mobile apps, to navigate to the customer’s location and communicate with the customer in real time.
5. Delivery Confirmation: The driver confirms that the package has been delivered, often by obtaining a signature or using a photo capture system, and the order is marked as complete.

Last-mile delivery can be complex, involving navigating challenges such as traffic, limited visibility, and managing returns. However, advancements in technology and new delivery methods, such as drones and autonomous vehicles, are helping to improve last-mile delivery and make it more efficient and cost-effective.

Last-mile operations have never been so complex. Increased variables in how, where and when deliveries depart and arrive give shippers and carriers alike greater flexibility, but they also provide greater complexity to the last mile.

Multiple challenges contribute to the last mile problem. One challenge for shippers and carriers is a lack of efficiency, which contributes to the expense of the last mile. Another challenge is providing real-time visibility regarding a delivery’s location for all stakeholders.

Amazon set the bar high with its ever-increasing ability to deliver in shorter time frames while also notifying the consumer about the transit delivery details. Brands with and without their own dedicated fleets strive to live up to the “Amazon effect,” and adhere to the promised delivery dates and times for consumers.

Consumers want visibility into their deliveries but expect faster delivery speeds. Keeping all stakeholders happy while delivering in increasingly shorter time frames most cost-effectively and efficiently is the last mile problem.

In short, the last-mile delivery problem impacts all companies. In today’s world, every company wants to deliver products quickly, efficiently and provide superior customer experiences while working in an increasingly complex and competitive landscape.

A vehicle tracking system is an electronic device installed within the vehicle to monitor that vehicle’s activity. It’s often paired with fleet management software to simplify fleet tracking.

The most common vehicle data that the system collects are:

• Location
• Speed
• Fuel consumption
• Driver behavior
• Vehicle fault codes

Companies that own or lease a fleet of vehicles often invest in vehicle tracking systems to improve the efficacy of their fleets. By using a vehicle tracking system with powerful fleet management software, fleets can:

• Uncover the best and quickest route to their destination.
• Improve the driving habits of their commercial drivers.
• Drastically reduce fuel consumption.
• Get better insurance premiums.
• Quickly and comprehensively conduct preventive maintenance work.
• Comply with government regulations.

Last-mile delivery is a complex process that involves several challenges that can impact delivery times, costs, and customer satisfaction. Here are ten common challenges in last-mile delivery:

1. Traffic Congestion: Traffic congestion can significantly impact delivery times, making it difficult for drivers to reach customers on time.
2. Limited Visibility: Last-mile delivery can be challenging to manage because tracking packages once they are out for delivery is difficult, leading to limited visibility for logistics companies and customers.
3. Missed Deliveries: Missed deliveries are a common challenge in last-mile delivery, leading to additional costs for logistics companies and customer frustration.
4. Managing Returns: Returns management is a complex process in last-mile delivery, requiring significant resources and logistics coordination to ensure that packages are returned to the appropriate location and processed in a timely manner.
5. Delivery Window Constraints: Customers often have specific delivery windows that can be challenging to meet, leading to missed deliveries and reduced customer satisfaction.
6. Cost Management: Last-mile delivery can be costly, particularly in urban areas where traffic and other challenges can increase delivery times and costs.
7. Unpredictable Demand: Last-mile delivery can be challenging to manage due to unpredictable demand patterns, leading to inefficient use of resources and additional costs.
8. Security and Theft: Last-mile delivery packages are at risk of theft and damage, resulting in significant financial losses for logistics companies and customer frustration.
9. Environmental Impact: Last-mile delivery can have a significant environmental impact due to emissions from delivery vehicles and packaging waste.
10. Limited Access: Last-mile delivery can be challenging in remote and rural areas where access to roads and other infrastructure may be limited, leading to increased delivery times and costs.

Last-mile delivery accounts for 53% of the total cost of moving a product across first, mid and last miles. Pinpointing an exact number on last-mile costs is difficult as each delivery differs. However, the average next-day shipping cost for a retailer is $27 per package, while for Amazon, it’s $5.