Last-Mile Delivery and Other Trends in Order Fulfillment

Virginia Miller

August 21, 2024

In this article:

Frequently Asked Questions

It's easy to see why eCommerce has grown in popularity: Nothing beats pressing a button to order a product and have it delivered straight to your door when it comes to convenience. Add in the fact that the current COVID-19 pandemic has produced a new housebound environment, and eCommerce is likely to remain potent for years to come.

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Modern technology has altered the way companies operate, primarily for the better. Sadly, it has also resulted in several novel challenges. The same innovation that allows consumers to buy goods with the click of a button often assumes that this will deliver the product on time.

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Fast, effective, and dependable order fulfillment is critical to maintaining customer loyalty, but it is also one of the most challenging challenges every company faces. When a customer purchases, the order fulfillment process starts and ends when they arrive securely on their doorstep. The final stage of the distribution process is known as last-mile delivery. It poses the most critical obstacle and cost for many distributors or logistics firms (aka final mile delivery).

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Improvements in the last mile distribution process of eCommerce delivery have become a central focus for companies and the third-party logistics providers (3PLs) that support them, fueled by customer demand for quicker delivery times and greater visibility. Before the COVID-19 pandemic, there was considerable momentum; however, the effort to boost last-mile delivery intensified in 2020.

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Because of quarantines, stay-at-home orders, and health issues about in-person purchasing, the pandemic flipped the supply chain segment on its head. In achieving a competitive edge in last-mile delivery, the businesses must consider the top trends, adjust to an ever-changing environment, and enhance the customer experience.

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Continue reading to find out more about last-mile delivery and how you can use that to improve order fulfillment.

Last-Mile Delivery: Definition & Top Trends

What is Last-Mile Delivery?

Last-mile delivery refers to the final leg of the delivery process, transporting goods from a transit hub or warehouse to the final destination, usually the customer's doorstep. Efficient last-mile delivery is crucial for ecommerce companies to get orders to customers quickly while keeping costs low.

Last-Mile Delivery During COVID-19

The COVID-19 pandemic accelerated ecommerce growth dramatically. As stores closed and online ordering surged, last-mile delivery became more important than ever. Customers now expect transparency, speed, and reliability in the last mile more than ever before.

Top Last-Mile Delivery Trends

Supply Chain Visibility Technology

Retailers are prioritizing real-time tracking and monitoring using GPS, RFID, and sensor technology to provide accountability and build trust.

Data Analytics to Cut Costs

Leveraging analytics and forecasting helps identify efficiencies to lower overall fulfillment costs, making expedited shipping options more accessible.

Faster Order Fulfillment

Retailers must fulfill orders quicker to keep pace with rising consumer expectations. Optimizing processes through a 3PL can help speed up last-mile delivery.

Urban Fulfillment Centers

Localized urban warehouses allow for faster turnarounds and options like same-day delivery, especially in large metro areas.

Micro Warehousing

Supplementing space as needed allows retailers to strategically stock and ship items from locations closest to the final destination.

Autonomous Vehicles & Delivery Robots

Self-driving vehicles and drones will transform last-mile delivery in the future by enabling greater speed, efficiency and reliability.

Crowdsourced Delivery

Early-stage startups are exploring crowdsourced models, engaging networks of drivers on-demand. This increases flexibility but may pose quality control challenges.

The Bottom Line

As ecommerce grows, efficient, transparent last-mile delivery only becomes more critical. Retailers must innovate using technology and data to meet rising consumer demands. Outsourcing logistics to a 3PL can help retailers focus on their core business while leveraging experts to optimize the last mile.

Next article: All About LTL (Less Than Truckload) Freight

Frequently Asked Questions

What is last-mile delivery?

Last-mile delivery refers to the final leg in an order's journey - transporting items from a facility or transit hub to the customer's doorstep.

Why is last-mile delivery important?

Last-mile delivery sets the tone for the customer experience. Meeting demands for visibility, speed, and reliability builds loyalty and trust.

How has COVID-19 impacted last-mile delivery?

The pandemic drove massive ecommerce growth, intensifying demands around last-mile. Customers now expect transparency into order status and delivery timelines.

What technologies are shaping last-mile delivery?

Real-time tracking, autonomous vehicles, drones, and delivery robots are emerging technologies that will transform last-mile delivery.

How can last-mile delivery be made more efficient?

Strategies like urban fulfillment centers, micro warehousing, and advanced analytics help optimize processes and provide faster delivery options.

What delivery innovations should retailers prioritize?

Retailers should focus on leveraging data, upgrading technology, and collaborating with logistics experts to meet rising last-mile demands.

What risks exist with outsourcing last-mile delivery?

While outsourcing logistics can provide efficiencies, retailers relinquish some control and oversight when trusting external partners.