What Is a Last-Mile Delivery Service?

Transporting goods from an e-commerce fulfillment center to a customer’s front door takes a lot of planning. However, online shoppers expect two-day shipping (and even same-day shipping), so retailers are under increasing pressure to ship goods faster than ever before.

Infrastructure and careful planning make the difference between meeting customer expectations and falling short. This is where last-mile delivery services come into play, revolutionizing how you deliver goods to customers.

In this guide, we’ll explain last-mile delivery services, how they work, and why they’re so beneficial for resource-strapped e-commerce businesses.

In this article:

• How a Last-Mile Delivery Service Works
• The Benefits of Last-Mile Delivery Service
• Transforming Deliveries, One Mile at a Time
• Frequently Asked Questions

How a Last-Mile Delivery Service Works

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Last-mile delivery is the final stage of the delivery process, where goods are shipped from a distribution center to the end customer. This is the trickiest part of the shipping process because it has the most direct impact on customer satisfaction.

Since packages must be routed to multiple trucks for countless delivery locations, last-mile delivery comes with many challenges. Many businesses partner with a last-mile delivery service provider, such as FedEx or UPS, to avoid the high cost of building their own infrastructure.

Last-mile delivery is the final phase in the supply chain, but a lot has to happen to deliver goods to customers. Last-mile delivery services work by:

• Processing orders: A customer places an order, and the nearest fulfillment center or warehouse processes it. The order details are then entered into the logistics system.
• Loading and dispatching: Employees load orders onto delivery vehicles, and drivers are dispatched, receiving real-time route information on their mobile devices.
• Optimizing routes: Advanced algorithms and route optimization software calculate the most efficient delivery routes. These tools account for traffic conditions, delivery windows, and the number of stops to speed up delivery.
• Real-time tracking: Customers receive notifications with tracking details, allowing them to monitor their package’s journey in real time. The system also updates customers on any delays or changes in the delivery schedule.
• Delivering goods to customers: Upon reaching the delivery destination, the driver captures proof of delivery, such as electronic signatures, photos, or barcodes. They upload the proof to the logistics system, which confirms a successful delivery for both the customer and the vendor.

Discover how the Wise Systems delivery automation platform gives you greater control and visibility throughout the delivery process. Book a demo today.

The Benefits of Last-Mile Delivery Services

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Most companies use a last-mile delivery service like the U.S. Postal System, FedEx, or UPS for the final leg of the delivery journey. Regardless of the service you use, opting for a last-mile delivery service partner has many benefits.

1. Customer Satisfaction

Customer satisfaction is the biggest perk of opting for a last-mile delivery service. Effective last-mile delivery is fast and dependable, helping you meet customers’ high expectations.

Most last-mile delivery services provide real-time tracking information to keep customers updated every step of the way, reducing their anxiety and improving the overall experience.

With Customer Portal from Wise Systems, your customers can track their orders throughout the day with accurate real-time ETAs. Learn more today! https://t.co/lZ5DEFbSqC pic.twitter.com/Gjj84BwW4L

— Wise Systems (@goWiseSystems) March 28, 2023

2. Cost Savings

Last-mile delivery can be complicated and expensive but using a last-mile delivery service costs significantly less than building your own infrastructure.

Plus, advanced routing algorithms minimize delivery timelines while keeping costs low, allowing you to pass the savings on to your customers.

3. Competitive Advantage

More and more businesses compete on customer service and shopper experience. The delivery process is part of the customer experience, so optimizing this process could give you an advantage over the competition.

As your business grows, a robust last-mile delivery system can easily scale to handle increased order volumes without compromising service quality.

Take advantage of these benefits and more with the Wise Systems delivery automation platform. Request a demo to learn how.

Transforming Deliveries, One Mile at a Time

Automating your last-mile planning plays a critical part in driving ROI and customer satisfaction. We’d love to discover more about the challenges you’re facing around routing and dispatching, and help automate your last mile processes. Reach out to us! https://t.co/G6r196eCS4 pic.twitter.com/7ExwyoEUai

— Wise Systems (@goWiseSystems) March 6, 2023

Last-mile delivery is the most important part of the delivery process but is also the most time-consuming and costly. By focusing on the final leg of delivery, you can meet shoppers’ expectations, reduce costs, and gain a competitive advantage.

While some businesses build their own last-mile infrastructure, many rely on last-mile delivery services to hit the ground running at a lower cost.

Whether you handle last-mile logistics in-house or not, you still need a system to track everything. The Wise Systems delivery automation platform offers a suite of tools to handle every facet of last-mile delivery, from state-of-the-art dispatch and routing tools to driver and customer communication solutions.

Wise Systems’ last-mile delivery platform gives you complete control over customers’ last-mile experience. Request a demo now to see it in action.

Frequently Asked Questions

Can last-mile delivery services handle large or bulky items?

Yes, last-mile delivery services can handle large or bulky items. It depends on the service, but many shippers use specialized vehicles and equipment, such as lift gates and dollies, to transport oversized products safely.

What role does technology play in last-mile delivery?

Technology plays a crucial role in last-mile delivery. Without it, businesses couldn’t optimize routes, track shipments in real time, or use predictive analytics. The right software solutions improve last-mile delivery efficiency and customer communication while also providing actionable data for continuous improvement.

What are the most popular last-mile delivery services?

Numerous companies offer last-mile delivery services. UPS, FedEx, DHL, and USPS are some of the most well-known third-party vendors for last-mile logistics. Some companies prefer to create their own last-mile infrastructure rather than relying on any third-party service provider.

There’s also a growing number of crowdsourced delivery services, which connect companies to a network of independent delivery drivers who use their own vehicles to make deliveries. This flexible workforce allows companies to easily scale their delivery operations to accommodate demand fluctuations.