The final leg of the shipping process — moving a package from a local hub or distribution point to the customer's door.
Last-mile delivery is the final segment of the shipping journey: transporting a package from a regional distribution center, sorting facility, or local hub to the end customer's address. Despite covering the shortest distance in a shipment's journey, last-mile delivery is typically the most expensive and operationally complex leg — often accounting for over 50% of total shipping cost.
The complexity comes from low-density routing (one truck delivering to many scattered addresses), failed delivery attempts, residential access issues, and rising customer expectations for speed (same-day, next-day) and visibility (real-time tracking). National carriers (UPS, FedEx, USPS) and regional/last-mile specialists (such as regional parcel carriers) compete heavily on cost and speed for this segment.
A strategy called zone skipping is often used to reduce last-mile costs: shipping bulk freight closer to the end customer's region before handing off to a local carrier for final delivery, which shortens the expensive last-mile leg and can reduce overall shipping cost and transit time.
Because it involves low-density, one-to-many routing to scattered residential addresses — unlike long-haul freight, which moves large volumes efficiently between fixed points. Failed delivery attempts and address issues add further cost.
Common strategies include zone skipping (positioning inventory closer to customers via multiple regional 3PL locations), using regional carriers for shorter routes, and consolidating orders into fewer, denser delivery zones where possible.
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