Last Mile
The last mile refers to a short delivery segment of media and communication services or the delivery of goods to customers living in densely populated areas. Simply put, it’s the last step in the delivery process.
The last mile of delivery is one of the most important steps in a parcel’s journey. It is the moment in the supply chain that matters most to customers.
Last mile logistics tend to be difficult and rather expensive for those providers, who deliver goods and services to these areas.
Main ideas
The last mile refers to a geographical distance that the provider of goods and services has to cover in order to provide to purchasers.
In communications, the last mile tends to be a quite complex and expensive process of delivering wiring or cables from the provider’s trunk to a customer’s home.
Nowadays, last mile logistics is a huge business and the main focus for service providers and their customers, and is now a center of retailers’ attention, especially in this day and age, when the internet is a part of our everyday lives.
Understanding the last mile
The rapidly growing e-commerce is a painful headache to many companies. The last mile delivery is no longer a plain transportation for just one product type to one destination. It involves the delivery of different products and services to many different receivers with high expectations on service levels and precise time windows.
Media providers spend a lot of money to upgrade old delivery systems and create new networks to ensure customers satisfaction when receiving the cables, wiring, etc.
There is a great variety of solutions to the problem of delivering services to customers. Media providers offer solutions for connecting customers, including both wired and wireless communication, even if the individual using the service lives miles away.
Last mile delivery
Last mile delivery starts at a transportation hub or a retail store, and they transfer the goods to the customers. The place you order from most likely uses a third-party delivery partner. The third-party coordinates the transfer of these goods from themselves to the final customer.
Last mile logistics
Last mile logistics for service and product delivery have become the main focus for providers and retailers. Nowadays, people demand fast delivery of their online orders and tend to get disappointed in the service if their order gets delayed. Retailers that are able to deliver products to customers in time at a lower cost, have better chances of outperforming their competitors.
One of the most known e-commerce companies, Azon uses third-party services in order to deliver products to their customers over the last mile. At the same time, the company is also working on building its own fleet to cover heavy demand.
In densely populated areas the last mile can be even harder to execute due to the fact that there are a lot of deliveries to restaurants and retail stores. This results in safety problems and congestion.
Cryptocurrencies and the last mile
In the past few years, the term last mile has reemerged in the context of cryptocurrency. In the case of digital currency, this term refers to when any type of cryptocurrency is used in a cross-border payment.
In order to use bitcoin, its recipient needs to find a way to exchange cryptocurrency for local currency. Consequently, despite the fact that cryptocurrencies do provide an efficient way of sending remittances, the last mile is still a problem in less-developed countries.
The last-mile problem
The market is highly competitive. Last mile delivery is especially challenging because of its complexity. Older models relied on economies of scale, resulting from distribution centers shipping in bulk to different stores.
Now, retailers that want to deliver directly to individuals are facing a brand new set of problems, like small quantity purchases, irregular purchasing patterns and missed delivery windows.
Some other challenges involve minimizing cost per stock as well as managing the increased complexity of the last mile process.
Another problem with the last mile is that it is the main condition of customer loyalty formation. A dissatisfied customer could not only refuse to order from the provider again, but also review the provider’s company online and write about their negative experience.
Lastly, when looking at the last mile problem, it is important to note that the last mile relies heavily on human factors. Meaning, the couriers have to be polite and punctual in order not to disappoint the customers.
In case a provider takes care of the last mile organization process, it is going to get satisfied customers who are going to order from the provider multiple times and leave a positive review. Which in turn, is going to improve the company’s reputation.
Last mile example
Michelle places an order in an online store or marketplace. She wants to receive the goods she’s ordered quickly, without any delays, and in a place that would be within walking distance of her house. It is these requirements that the last mile needs to satisfy.
