Last-mile delivery is the final phase of the delivery process. In a product’s journey, it is moved from the warehouse shelf (often at a distribution center), to the back of a truck, to the customer’s doorstep—the final s¬tep of this process, known as the last-mile of delivery. While last-mile delivery is the most expensive and time-consuming part of the shipping process, it directly impacts customer satisfaction, as it's the point of actual delivery and the customer's first and last interaction with the logistics process.

Challenges

Businesses today face major inefficiencies in the last mile—often the most expensive and complex part of the delivery chain. From delayed deliveries to high costs, the lack of automation creates operational bottlenecks and customer dissatisfaction.

1. Poor visibility for customers and businesses

   Customers feel anxious and uncertain without accurate updates, while businesses lose control over their fleet and delivery operations.

2. Inefficient Routing

   Route planning is challenging because of the uncertain contingencies that can occur during last-mile delivery. Manual routing methodologies result in 20-25% extra distance traveled which adds to the cost.

3. Manual order assignment delays

   Relying on human intervention to allocate tasks often leads to inefficiencies, such as assigning distant riders, mismatched workloads, or delayed responses during peak hours.

4. Limited proof of delivery systems

   Without clear documentation—like digital signatures, photos, or OTP confirmation—businesses struggle to validate if, when, and how a delivery was completed

5. High Costs

   Last-mile delivery can be the most expensive part of the entire delivery process, accounting for a significant portion of total shipping costs. The high shipping costs and inefficiencies linked to the last-mile problem are made worse by the ongoing surge of ecommerce sales in India. This has increased the volume of packages delivered daily, and customer expectations have risen to demand both quick and complimentary delivery. As free shipping is now available on many retailer sites, customers are less willing to pay a delivery fee, and retailers are more likely to incur the extra costs.

6. Traffic and Logistics

   Navigating urban traffic and managing deliveries in densely populated areas can be challenging and time-consuming. The last-mile problem is when a package’s real-time status online reads “out for delivery,” but customers still have to wait for an extended period of time before they receive it. This occurs because there can be numerous stops and delays in the final stretch of shipping. Due to long distances delivery in rural areas is tardy, with only a couple of packages being delivered at each stop.

7. Customer Expectations

   Customers demand faster and more convenient delivery options, increasing the pressure on businesses to improve last-mile efficiency.

8. Sustainability Concerns

   Longer inefficient delivery routes contribute to traffic congestion and pollution, raising concerns about sustainability.

Solutions and Strategies for Improving Last-Mile Delivery

1. Route Optimization for Multi-Order Deliveries

   Softwares with route optimization and multi-order management features are designed to make deliveries smarter, faster, and more efficient. By automatically calculating the best routes for multiple orders, drivers no longer need to rely on manual decision-making.
   Drivers receive real-time, turn-by-turn navigation that updates dynamically based on traffic conditions, road closures, and optimal routing. Drivers handle multiple orders in a single trip by intelligently grouping deliveries based on proximity and priority. At each delivery touchpoint, drivers can easily capture critical data such as Proof of Delivery (POD), Cash on Delivery (COD) reconciliation, and exact delivery times. Drivers and businesses have full visibility of the order’s progress. Real-time tracking updates inform both the customer and management about the order status.

2. Flexible 360° Live Tracking

   With real-time tracking modules, businesses gain full visibility of their fleet on a dynamic map. From vehicle location to ignition status and geofence alerts, everything is available live, helping them make informed operational decisions. Real-time updates create a transparent and reassuring delivery experience.

3. End-to-End Order Fulfillment, Fully Tracked

   During the entire delivery process, customers receive live updates on their phone. An order is tracked from the pick up point till it’s delivery.

4. Seamless & UserFriendly Driver Apps

   The driver apps are designed to provide a seamless and intuitive experience for drivers, ensuring they stay connected with the central system in real-time. Drivers can stay on top of their tasks, routes, and performance without the hassle of complex interfaces, making their daily operations smoother and more effective

5. Delivery Network Optimization

   Establishing strategic hubs and delivery points to reduce travel distances and improve efficiency.

6. Technology and Automation

   Leveraging technologies such as drones, robots, and autonomous vehicles to automate delivery processes and reduce costs.

7. Last-Mile Partnerships

   Crowdsourced delivery helps eliminate the bottlenecks of last-mile delivery by assigning someone local to keep track of both the package’s origin and the customer’s delivery location, which can speed up fulfillment and improve the customer experience.
   A benefit of crowdsourced delivery is that it is technology-driven and requires few resources. Similar to ride-sharing, contracted couriers use their own vehicles to make deliveries, often from the retailer’s store (as opposed to distribution centers). They are typically paid per delivery or shift. Companies thereby reduce their dependence on logistics, which makes the process cheaper and simpler.

8. Flexible Delivery Options

   Customers can choose the day of delivery of their choice.

9. Sustainability Initiatives

   Implementing eco-friendly delivery methods, such as using electric vehicles or bike messengers, to reduce environmental impact.

Benefits of effective last-mile delivery strategy

1. Impact on Customer Experience and customer service

   Last-mile delivery service offers consumers the convenience of having their packages brought directly to their door, rather than having to travel to a pickup point to retrieve their items. Same-day, final-mile delivery has become crucial for winning business, as customers have come to expect speedy fulfillment and distribution in the online shopping experience. Some 25% of shoppers will buy from another retailer if their order doesn’t arrive in three and a half days, per a survey. That’s why businesses are developing new technologies and experimental supply chain models to increase parcel volume and expedite deliveries. A positive last-mile delivery experience can significantly increase customer satisfaction and loyalty.

2. Increase sales and revenues

   Companies with quick and dependable delivery services are more likely to acquire and retain clients, which boost revenues. If last-mile delivery allows businesses to provide delivery services to remote and rural areas, their sales and revenues may rise as a result of greater access to new clients.

3. Increase efficiency

   Last-mile deliveries can help businesses streamline their operations by reducing the time and resources required for delivery. By leveraging digital technologies, businesses can have cost-effective delivery operations.

Conclusion

Last-mile delivery software brings automation to delivery processes, to accelerate order allocation and delivery operations. SaaS-based software can be deployed quickly and integrated with existing order management system. It helps manage last-mile delivery by providing complete visibility and real-time updates to dispatchers, drivers and customers.