Last-Mile Delivery
The final leg of a shipment's journey from a local hub, warehouse, or distribution center to the end destination — often a residential address, retail store, or business location. Last-mile delivery is typically the most expensive and logistically challenging portion of the supply chain due to smaller vehicles, individual stops, traffic, access restrictions, and customer availability. It accounts for up to 53% of total shipping costs.
Real-World Example
After a full truckload of appliances arrives at a regional distribution center, individual refrigerators are loaded onto straight trucks for last-mile delivery to 20 different homes across the metro area.
Why Last-Mile Delivery Matters for Shippers
Selecting the right transportation mode can make or break your landed cost. Knowing how Last-Mile Delivery fits into the broader modal landscape — truck, rail, ocean, air, or intermodal — helps you balance speed, cost, and reliability for every lane. The best freight strategies use multiple modes strategically rather than defaulting to the same option every time.
Common Questions About Last-Mile Delivery
When should I choose Last-Mile Delivery over other transportation modes?
The decision depends on your shipment's size, weight, urgency, origin-destination pair, and budget. Last-Mile Delivery offers specific advantages in certain scenarios. Comparing total landed cost — including pickup, linehaul, handling, and delivery — across modes gives you the clearest picture.
Can I combine Last-Mile Delivery with other modes?
Yes. Intermodal shipping combines multiple modes to optimize cost and transit time. For example, you might use Last-Mile Delivery for the linehaul portion and truck for first-mile and last-mile delivery. Your broker can help you evaluate whether a multimodal approach makes sense for your lanes.
What are the capacity limitations of Last-Mile Delivery?
Every transportation mode has weight, dimension, and volume constraints. Understanding the capacity limits of Last-Mile Delivery helps you plan shipments efficiently and avoid costly reweighs, reclassifications, or equipment changes at the dock.
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