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Last Mile Delivery

Last mile delivery is defined as the movement of goods from a transportation hub to the final delivery destination. The final delivery destination is a personal residence or a business location. The focus of last mile logistics is to deliver items to the end user as fast as possible.

Online buying and selling has become an important part of many people's lives. Students and parents rely on the internet to acquire and sell textbooks at affordable prices, virtual stores allow people to shop from the comfort of their homes without the pressure of a salesperson, and online marketplaces provide a new and more convenient venue for the exchange of virtually all types of goods and services.

Focus has been placed on last mile logistics because, in many cases, this is a key differentiator for retailers. Because consumers can easily shop for product alternatives retailers and their supply chain partners must provide exceptional service to gain market share and build brand loyalty.
As a result, businesses have begun racing to develop new technologies and experimental supply chain models to increase parcel volume, expedite deliveries, and delight customers — all while trying to cut costs.
Unfortunately, one of their biggest expenses and challenges is same-day, last mile shipping.

If you've ever tracked a package online and saw that it was "out for delivery" for what felt like forever, you already understand that the last mile problem is inefficiency. That's because the final leg of shipment typically involves multiple stops with low drop sizes.
In rural areas, delivery points along a particular route could be several miles apart, with only one or two packages getting dropped off at each one. In cities, the outlook isn't much better; what urban areas make up for in stop proximity is quickly negated by the near constant delays of traffic congestion.

Last-mile delivery is going to have to keep up with the increasing demands of consumer buying trends.
Retailers are spending a lot of money and resources trying to understand consumers and their purchasing power, as well as their purchasing behaviors.

  “We can talk at length about the Amazon effect, and eBay and Netflix. Today ... consumers have been conditioned to expect faster, quicker service at a low cost. You go on Netflix and after a few clicks. you have a movie. Consumers right now are living in the now. They want their orders tomorrow and they want it for free.” - Kerry Rambalie, senior manager at Gap


Same-day delivery is no longer a niche – it’s expected thanks to Amazon. FedEx is following. One thing some retailers are doing is a pick up from store model, where consumers can buy the product online and have it shipped directly to the closest hold on location store to them.
The key trend we’ve seen is the power shopper.
The power shoppers are those who purchase more than 25 items a year online.
  • In 2016, 10% of Canadians were power shoppers.
  • In 2017, 18% of Canadians were power shoppers.
  • In 2018, 30% of Canadians were power shoppers.