What is Last Mile?
380 reads · Last updated: December 5, 2024
The last mile describes the short geographical segment of delivery of communication and media services or the delivery of products to customers located in dense areas. Last mile logistics tend to be complex and costly to providers of goods and services who deliver to these areas.
Definition
The last mile refers to the final segment of delivery for communication and media services, or the delivery of products to customers located in densely populated areas. For providers delivering goods and services to these areas, last mile logistics are often complex and costly.
Origin
The term 'last mile' originally emerged in the telecommunications industry, describing the connection from the telecom service provider's infrastructure to the end user. With the rise of e-commerce, this concept expanded into the logistics field, specifically referring to the final leg of transportation from distribution centers to consumers.
Categories and Features
Last mile logistics can be categorized into B2B (business-to-business) and B2C (business-to-consumer). B2B typically involves large volume shipments, while B2C focuses on small volume, high-frequency deliveries. Characteristics of last mile delivery include high costs, complex route planning, and high sensitivity to time.
Case Studies
Amazon is a prime example of last mile logistics. To enhance delivery efficiency, Amazon has invested in its own logistics network, including the use of drones and autonomous vehicles for delivery. Another example is Alibaba's Cainiao Network, which optimizes last mile delivery through smart warehousing and data analytics.
Common Issues
Common issues investors face when considering last mile logistics include high costs and complex urban traffic. Strategies to address these issues include using technology to optimize routes and improve delivery efficiency.
