Logistics
What is Last mile?
The final leg of a delivery, from the local depot to the customer's door. It is the most expensive part of the journey per package and the only part the customer experiences, so it drives both cost and delivery complaints.
Why it matters in practice
Last mile is expensive because it does not scale the way the rest of the network does. One truck can carry thousands of units between cities, but the final leg is one stop per customer, with traffic, failed attempts and returns to depot along the way. For an operator that shows up in two places. First in cost, because the further your stock sits from the buyer, the more of the journey is long haul and the slower the promise you can make. Second in experience, because the courier handing over the box is the part of your operation the customer remembers, even though you did not choose them. Moving inventory closer to demand is usually the lever that improves both at once.
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