Last Mile

What is the Last Mile?

The Last mile meaning is a common term in the transportation and telecommunication Industry. It is used to define the movement of the goods from the transportation hub to the end-customer. The term was derived from the telecommunication sector, where the sector faced challenges while supplying the final product and services to the customers.

The term is commonly used in the supply chain management sector, where it defines the issues the companies face to supply the products to the final destination. The customers based in the cities, rural areas, and other destinations are considered to be the last mile.

Challenges in the Last-Mile Delivery Industry

Some of the common challenges this industry faces are managing Efficiency in transportation, reducing the total cost of supply, enhancing the overall infrastructure, and so on. While the concept does not seem important in the latest transportation industry, it can make up approx 28% of the total transportation expenses. What makes it even more challenging is the growth in the eCommerce industry. Now that more and more customers are ordering products from online stores, the suppliers are facing issues with last-mile delivery. As mentioned above, the last mile is the final step of the production process, in which the goods and services are supplied to the end-user.

Mostly, this step includes the delivery man and some parcel services to get the product to the final user. That’s because some customers are based in remote locations that can be as far as 50-100 miles. Research shows that the eCommerce industry is expected to grow in the coming years. In fact, the Market will be doubled. Even the businesses have started to embrace the last mile shipping services as it seems to be a lucrative option for all sizes and types of businesses.

Growth Opportunities

The last mile concept helps the suppliers to identify the common challenges that can hamper the distribution process and make it expensive. It helps you deliver the product to the final user in a cost-efficient way. The best example of a company that has mastered the last mile delivery would be Amazon. Many small and medium-sized businesses are also trying their best to overcome the delivery challenges and provide their clients with the best shipping experience. Both urban and global delivery comes with their share of concerns and challenges.

While heavy traffic can delay the shipment in the urban areas, the high cost of transportation makes it nearly impossible for small businesses to expand on the global level. The latest generation demands cost-efficient and fast delivery of the products they order online. This has made the logistics market a competitive sector. Businesses look up to Amazon and other reputable brands when it comes to last-mile delivery. Companies that perfect the last mile logistics get a competitive advantage.

To compete with the large companies, many small and medium scale businesses have started to establish distribution centers in the metropolitan cities for faster and seamless delivery of the ordered products.