Last-mile logistics
The "last mile" describes the crucial part of the delivery process in e-commerce: the route from a warehouse or distribution center to the end customer's front door - via the carrier. Whereas in the past it was primarily about speed, today the focus is increasingly shifting towards flexibility and convenience. Customers not only want to receive their goods quickly, but above all when and where it fits into their everyday lives.
But what does this mean in concrete terms for the various models of last-mile logistics in the B2C business? Let's take a look at the various options according to the criteria of speed, delivery time window and delivery location.
What is last-mile logistics?
Definition and importance in the supply chain
Last mile logistics refers to the final stage of the supply chain, where goods are delivered from a means of transportation to the end customer. This stage is crucial as it is the last step in the supply chain and directly affects customer service. Last mile logistics includes the pickup, transportation, tracking and timely delivery of orders to customers. In today's booming e-commerce world, the efficiency of last-mile logistics is a key factor in a company's success. Well-organized last-mile logistics can not only increase customer satisfaction, but also significantly improve a company's competitiveness.
Changing customer expectations due to e-commerce
E-commerce has fundamentally changed consumer expectations of last-mile logistics. Customers now expect fast and reliable delivery, often even on the same day or within 24 hours. These high expectations have led to an increased demand for same-day delivery and express deliveries. Last mile logistics must adapt to these changing expectations in order to improve customer service and increase customer satisfaction. Companies that are able to meet these requirements can gain a decisive competitive advantage. At the same time, this poses major challenges for logistics service providers, as they must constantly optimize their processes and develop innovative solutions to meet the increasing demands.
1st Last Mile by speed
The fastest last mile option is same-day delivery or even delivery within hours. With this form of logistics, the order is delivered on the same day - sometimes even within a few hours of purchase. This type of delivery is particularly suitable for products that are urgently needed, such as medicines, food or important household items.
For the customer, this means a high level of convenience, as they can hold their order in their hands immediately. But this speed also comes at a price. The logistical requirements are extremely high: retailers have to operate regional warehouses or fulfillment centers and work closely with courier services. This costs time and money - and often has to be passed on to the customer in the form of higher delivery charges.
Although this fast delivery method is practical, for many consumers it is only an option if it is really urgent. For everyday needs, speed often plays a subordinate role. This is where other last mile models come into play.
Technological innovations for the last mile
Automated shipping and route optimization
Technological innovations play a decisive role in optimizing last mile logistics. Automated shipping and route optimization are two examples of such innovations. By using algorithms and artificial intelligence, delivery orders can be allocated more efficiently and routes optimized to shorten delivery times and reduce costs. In addition, alternative vehicles such as electric vehicles and drones can also be used to improve last mile logistics. These technologies not only help to increase efficiency, but also to reduce environmental impact. Companies that invest in such innovative solutions can increase their competitiveness and contribute to environmental protection at the same time.
2. last mile according to delivery windows
An increasingly important trend in last-mile logistics is delivery at flexible times that customers can choose themselves. Many people are not at home during the day, work or have other commitments. A delivery in the morning simply does not fit into their daily routine. Instead, they want to be able to determine the exact time of delivery - for example, in the evening after work or at the weekend.
This form of delivery requires close coordination between the logistics provider and the customer. The aim is to offer time slots that are not only practical but also reliable. For example, if the customer expects a delivery between 6 p.m. and 8 p.m., then the parcel should also arrive at exactly this time. Such personalized time slots require a high degree of flexibility in route planning and precise real-time communication with the customer.
The example of the flexible delivery period shows that customers today are less interested in speed than in predictability. This type of logistics gives the customer back control over the receipt of their goods.
3. last mile by place of delivery
The classic delivery location is the customer's home. But even here there are now numerous alternatives. Many people are not prepared to wait for hours for the parcel carrier. The solution? Provider-neutral parcel boxes or packing stations where customers can pick up their parcels when it suits them. Here, customers can collect their order when it suits them, without being tied to opening hours or a visit from a courier.
For example, a customer orders a book online but is out and about all day. Instead of sticking to fixed delivery times, he chooses delivery to a parcel station near him. He receives a message as soon as the parcel arrives and can conveniently pick it up on the way home.
This option not only offers flexibility, but also a security aspect: the risk of a parcel being lost or falling into the wrong hands is minimized if it is delivered to a secure pick-up location. This form of delivery also relieves the burden on parcel services, as they no longer have to deliver each order individually, but can deliver several parcels centrally.
Another innovative model currently being tested is delivery to the trunk of the car. Using smart technology, the courier gains access to the vehicle while it is parked and places the parcel directly there. This means the customer does not have to be at home and can take their order with them immediately when they return. This type of delivery is particularly practical for people with busy schedules, but is still little used as it requires technological prerequisites and trust.
Conclusion: flexibility is the new "fast"
The requirements for last-mile logistics in B2C e-commerce have changed significantly. It is no longer just about how quickly a parcel reaches the customer, but rather when and where it is delivered on the last leg of the journey. Companies that embrace flexible time windows, alternative pick-up locations and transparent communication can gain a decisive competitive advantage.
The future of the last mile does not lie in ever faster deliveries, but in customized, customer-oriented solutions that can be seamlessly integrated into consumers' everyday lives.
Other relevant terms from the E-Commerce & D2C Glossary: