Last mile is a term used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination.[1] Last mile delivery is an increasingly studied field as the number of business to consumer (b2c) deliveries grow due to effects from Amazon and other e-commerce companies in freight transportation, and effects from ride sharing companies such as Uber in personal transportation. Increasing deliveries has in turn turn increased congestion, pollution, and cost especially in urban settings.
Usage in distribution networks edit
The term "last mile" was originally used in the telecommunications field but has since been applied to supply chain management. Transporting goods via freight rail networks and container ships is often the most efficient and cost-effective manner of shipping. However, when goods arrive at a high-capacity freight station or port, they must then be transported to their final destination. This last leg of the supply chain is often less efficient, comprising up to 28% of the total cost to move goods. This has become known as the "last mile problem."[2][3] The last mile problem can also include the challenge of making deliveries in urban areas. Deliveries to retail stores, restaurants, and other merchants in a central business district often contribute to congestion and safety problems.[2][4]
A related last mile problem is the transportation of goods to areas in need of humanitarian relief. Aid supplies are sometimes able to reach a central transportation hub in an affected area but cannot be distributed due to damage caused by a natural disaster or a lack of infrastructure.[5]
As e-commerce continues to become a growth engine for many brands, the last leg of delivery, ending up at the consumer's home or business (b2c) or (b2b), has become more challenging. Thanks to the Amazon Effect, consumers want more convenient options for fast, free delivery, putting pressure on other businesses to compete for the perfect delivery experience—today, 84% of shoppers won't return to a brand that misses their delivery.[6] Unattended delivery has also become a significant issue among delivery companies like UPS, FedEx, USPS, DHL and others. Leaving a parcel unattended exposes the item(s) to weather, and to the increasing chance of theft by "porch pirates" (a person or persons who steal packages off of unsuspecting customers' porches or front door areas), making delivery experience management crucial for retailers who want to balance the costs of last mile delivery with customer satisfaction.[7] Retail companies like US based Amazon and China based Alibaba have researched and deployed drones for delivering goods purchased online to consumers.[8] Amazon has also set up lockers in some urban centers as a way of consolidating packages. Automated parcel delivery is becoming a popular option these days. Europe has led the way in this with Germany, Britain and Poland being the first markets for these services. In Taiwan, many online vendors offer the option of delivery to a convenience store of the customer's choice, for pickup from the store by the customer. Payment for the purchase at the store may also be offered. Another successful trend in the United States are ride-sharing services similar to Uber who specialize in moving large items using pickup trucks or personal vehicles. This method has created jobs while improving last mile logistics.[9]
The main challenges of last mile delivery include minimizing cost, ensuring transparency, increasing efficiency, making delivery frictionless and improving infrastructure.
(copied from last mile (transportation))
- ^ Goodman, R W (December 2005). "Whatever You Call It, Just Don't Think of Last-Mile Logistics, Last" (PDF). Global Logistics & Supply Chain Strategies: 84–86.
- ^ a b Scott, Martia (November 2009). "Improving Freight Movement in Delaware Central Business Districts" (PDF). Institute for Public Administration, University of Delaware. Retrieved 24 October 2011.
- ^ Rodrigue, Jean-Paul; Claude Comtois; Brian Slack (2009). "The "Last Mile" in Freight Distribution". The Geography of Transport Systems (2nd ed.). Routledge. p. 212. ISBN 978-0-415-48323-0.
- ^ Allen, Brigitte (2012) Improving freight efficiency within the ‘last mile’: A case study of Wellington’s Central Business District (Thesis, Master of Planning). University of Otago.
- ^ Balcik, Burcu; Benita M. Beamon; Karen Smilowitz (2009). "Last Mile Distribution in Humanitarian Relief". Journal of Intelligent Transportation Systems. 12 (2): 51–63. doi:10.1080/15472450802023329. ISSN 1547-2442. Retrieved 24 October 2011.
- ^ "Delivery Experience Management is the Future of the Last Mile". Convey. 2019-02-04. Retrieved 2019-02-16.
- ^ Jolly, Jennifer (2016-10-09). "Protect your online purchases from 'porch pirates'". USA Today. Retrieved 2016-12-11.
- ^ "Alibaba deploys drones to deliver tea in China".
- ^ "What is Last Mile Delivery- A Complete Guide". Bungii. 2019-09-20. Retrieved 2019-09-20.
- ^ Fincher, Marcelo. "5 Ways to Overcome Last Mile Delivery Challenges". Retrieved 10 September 2017.