What Is Last-Mile Delivery?

What to Know About Last-Mile Delivery

Last-mile delivery is sometimes referred to as last-mile logistics. It refers to transporting goods from the distribution hub to the customer. The main goal is to make sure that the goods reach their destination as quickly as possible.

Why Is Last-Mile Delivery Challenging?

The cost is the main thing that can make last-mile delivery a challenge. In fact, it is estimated that last-mile delivery accounts for about 50% of the total shipping costs. Other things that can make last-mile delivery challenging include idle time, complex routes and the time spent on the road.

Last-mile delivery companies have to make sure that they have enough drivers to cover the jobs. They also have to maintain their vehicles.

What Types of Businesses Depend on Last-Mile Delivery?

There are several types of businesses that depend on last-mile delivery, including the following.

• Florists
• Department stores that deliver goods
• Couriers
• Third-party logistic companies
• Pharmacies that deliver medications
• Restaurants that deliver food
• Ecommerce

How Much Will You Have to Pay for Last-Mile Delivery?

There are several factors that determine the cost of last-mile delivery. However, most businesses pay around $10.10 for every package that they deliver. The consumer will have to cover about $8.08 of the costs on average.

Why Last-Mile Delivery Costs So Much

Trucks do not go as fast as other vehicles. They will spend more time on the road, which will increase the cost of fuel. There are also extra stops that increase the time. Furthermore, failed deliveries increase the cost of last-mile delivery. Situations such as delivering to the wrong address, the customer not being home and a customer who is not expecting the delivery all add to the cost of last-mile delivery.

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