What does 'last-mile delivery' refer to in logistics?

Last-mile delivery specifically refers to the final leg of the delivery process, where goods are transported from a distribution center or warehouse directly to the end customer. This stage is crucial in logistics because it significantly affects customer satisfaction, as it directly influences how quickly and efficiently a consumer receives their order. It also often accounts for the highest cost within the shipping process, which is why optimizing last-mile delivery is an essential focus for logistics and supply chain management professionals.

In this context, it is important to distinguish last-mile delivery from the initial steps in the shipping process, routes or methods for calculating delivery times, which do not capture the essence of the specific end phase where interaction with the customer takes place. Understanding last-mile delivery enables logistics professionals to implement strategies that enhance the overall effectiveness and efficiency of the supply chain.