What Is Last-Mile Delivery?
Last-mile delivery is the final leg of the supply chain — from the local distribution point to the customer's door. Learn why it is the most expensive and complex part of ecommerce logistics.
Key Takeaways
- Last-mile delivery accounts for 40-53% of total shipping costs despite being the shortest distance in the supply chain.
- It is the primary driver of customer satisfaction and the most common source of ecommerce complaints.
- African markets face unique last-mile challenges including poor addressing systems, traffic congestion, and limited courier infrastructure.
What last-mile delivery means
Last-mile delivery is the final step in getting a product from a warehouse or distribution centre to the customer's doorstep. Despite covering the shortest distance in the entire supply chain, it is disproportionately expensive and complex because each package goes to a unique address. Unlike bulk transport between warehouses, last-mile delivery involves individual stops, failed delivery attempts, and navigation through residential areas with varying accessibility.
Why it is so expensive
Last-mile costs are high because of low drop density — delivery vehicles make many individual stops rather than delivering in bulk. Failed first-attempt deliveries require costly re-delivery. Customer expectations for free or low-cost shipping mean retailers often subsidise last-mile costs. Time-window delivery guarantees add further expense. In total, last-mile delivery represents 40 to 53% of overall logistics costs, making it the single biggest cost component in ecommerce fulfilment.
Last-mile challenges in Africa
African last-mile delivery faces challenges rarely encountered in developed markets. Many addresses lack formal street names or house numbers, forcing reliance on landmarks and phone-based navigation. Traffic congestion in cities like Lagos can make short distances take hours. Rural areas lack courier coverage entirely. Companies like Jumia have built proprietary delivery networks to address these gaps. Motorcycle delivery and pickup point networks are emerging as cost-effective African solutions.
Strategies to optimise last-mile
Implement delivery route optimisation software to reduce distance and fuel costs. Offer pickup points as an alternative to home delivery — this dramatically reduces per-order cost. Use local delivery partners who know the area rather than relying solely on national carriers. Provide accurate delivery windows and real-time tracking to reduce failed attempts. For African businesses, consider M-Pesa or Paystack integration for cash-on-delivery alternatives that reduce payment-related delivery failures.