Last-Mile Delivery – The Next Big Thing in Logistics

Today’s digital age has created new expectations. Customers now demand faster and more convenient delivery of goods and services. If they are to order gadgets or beauty products online, the process should be hassle-free. Booking should be easy-peasy, and delivery time has to be quick. Time of arrival should be at its most convenient–and not while they’re in a meeting or doing an errand. Sometimes this even means within the hour because everyone knows waiting is pain. Moreover, the package has to arrive in good, mint condition for immediate use. Your customers want it good, and they want it now.

The big puzzle for businesses is how to meet unpredictable customers’ expectations. They have now made last-mile logistics an essential piece of that puzzle to expand their customer base beyond their local market. This blog post will explore why last-mile logistics is one of the most critical areas for innovation in today’s logistics industry.

What is Last-Mile Delivery?

The last mile is the final leg of the supply chain. It’s the point-to-point transaction between the source of raw materials and the buyer. Think of it as a direct flight– a one-way ticket from the supplier (or the shop) to the paying customer. There is no layover. From the origin that is the supplier, the arrival of goods usually occurs in the customer’s city or neighborhood.

The last mile is crucial to any logistical operation since it determines how quickly a product can reach its final destination. It is also where most of the logistical costs are spent.

Since it is usually the farthest but fastest, the last mile costs more than handling the first mile, which is the distance between a company and the nearest shipping hub. It is also more expensive than the middle mile, the distance between the nearest shipping hub and the customer. 

However, since the paying customer values convenience more than money, the last-mile logistics solutions are expected to continue experiencing strong growth in 2022.

Why Is Last-Mile Delivery Important?

Time is the difference between these legs. If a procrastinating birthday celebrant needs a projector for her party, the first and middle miles cannot help. Last-minute purchases won’t make it in time if the products still need to go through a shipping hub.

Automations or machines essentially handle the first and middle mile, while human hands often still manage the last mile. Yes, machines are efficient as they are, but transactions by man are much more careful and personal. In line with this, human resources cost more, which means it’s the area that needs more attention. 

Tech industries have progressed much with the first and middle miles, overlooking the last mile option. However, the tables may be about to be turned as the demand for last-mile solutions is beginning to rise. E-commerce transactions are increasing by the minute, and the number of deliveries per transaction follows suit.

Who Will Benefit From Last-Mile Logistics?

Last-mile solutions benefit a wide array of stakeholders in various industries, from retail, beauty products, and even food and beverage. Retailers and e-commerce companies can organize their product deliveries at lower costs. Less fuss over finance always brings a smile to anyone’s face. It also expands its roster of customers as it leads to discovering new clients in different markets and communities. 

Customers win in this area by getting a faster, sweat-free shipment option for their online purchases. Delivery is more careful and reachable with just a call or a few taps on their phones. It’s the shopaholic’s new favorite as it gives them easier access to increasing the things they buy online.

The last mile is the perfect answer to the time-handicapped problem. In a world of digital shopaholics, business owners, demanding patrons, and impatient customers– the future of last-mile solutions is looking good.

Borzo offers same-day, last-mile delivery to cater to your customers’ needs. Our sales team will be available to discuss your business challenges and needs. Just drop us your contact info, and we’ll be right there to assist you. 💙😊

Book a Borzo courier via our website (available on desktop or mobile browser) or our app!

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