Last-Mile Delivery
The final leg of a shipment's journey, from a local hub to the customer's door - usually the most expensive part of fulfillment.
In practice
It typically accounts for a disproportionate share of total shipping cost relative to distance covered, because a truck carrying hundreds of packages across a country is far more efficient per package than a van making dozens of individual stops in one neighborhood.
A package travels 2,000 miles by air and truck for a few dollars, then costs almost as much again for the final 10 miles to the customer's door.
Why it matters
It's the delivery leg customers actually experience and remember - a late or damaged last-mile delivery can undo the impression of an otherwise smooth order.
Worth knowing
- Costs scale with delivery density - rural or spread-out addresses cost more per package than dense urban routes.
- Local courier networks and delivery lockers have emerged partly to bring last-mile cost down.
- Real-time tracking during this leg is what most reduces 'where is my order' customer service tickets.
Related terms
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