Last mile delivery

Most of a shipment's distance is cheap; the final miles are not. Line-haul outbound legs move full trailers between fixed points, so cost per unit-mile stays low. The last mile inverts that math: one vehicle, dozens of stops, a few packages each, which is why industry rules of thumb put this leg at roughly 40 to 50 percent of total delivery cost. Density decides most of the rest. A route with 120 stops on a tight urban grid spreads driver, fuel, and vehicle cost across far more deliveries than 30 stops scattered along rural roads, and every failed first attempt doubles the cost of its stop.

B2B last mile, the version that matters in manufacturing logistics, looks little like parcels on doorsteps: it means scheduled dock appointments, liftgate trucks, receiving-hours constraints, and a missed window that pushes delivery a full day. Teams manage it with route optimization inside a transportation management system, appointment discipline, and carrier scorecards that track first-attempt success.

Frequently asked questions

What is last mile delivery?

Last mile delivery is the final segment of a shipment's path, from a local depot or distribution center to the end customer's receiving dock or doorstep. Consolidation breaks down on this leg: instead of full trucks moving between fixed nodes, one vehicle makes many small stops, which is why industry rules of thumb put the last mile at roughly 40 to 50 percent of total delivery cost.

Why is the last mile so expensive?

The last mile is expensive because the economics of consolidation invert: line-haul legs move full trailers between fixed points at low cost per unit-mile, while the final leg puts one vehicle on dozens of stops with a few packages each. Stop density decides most of the rest. One dense metro route ran $1.85 per delivery while the same truck on 35 scattered rural stops cost $5.90, and every failed first attempt doubles the cost of its stop.

How is B2B last mile different from parcel delivery?

B2B last mile in manufacturing looks little like parcels on doorsteps. Deliveries involve scheduled dock appointments, liftgate trucks, and receiving-hours constraints, and a missed window pushes delivery a full day. In one example, a 1,400-pound control cabinet needed a liftgate truck and a 7 to 9 a.m. dock appointment, with a $150 redelivery fee and a one-day slip for the waiting installation crew if the window was missed.

How do companies manage last mile cost?

Teams manage the last mile with route optimization inside a transportation management system, appointment discipline, and carrier scorecards that track first-attempt success. Improving first-attempt success and stop density matters most, since those two factors drive cost per delivery more than line-haul distance does.