Last-mile or final mile delivery is the final handoff — when a package leaves the local hub or warehouse and is delivered to the customer’s doorstep. It sounds simple, but it’s the most visible, most expensive, and most unpredictable step in the entire logistics process.

Let’s say someone orders a phone online. It ships from the manufacturer, moves through big distribution centres, and lands at a local facility near the buyer. That final stretch — from that hub to the customer's home or office — is the last mile.

This step can make or break the entire customer experience.

dispatch rider on map


Last-Mile Delivery is expensive because it involves multiple small trips to individual addresses. Factors like traffic, failed deliveries, route inefficiencies, fuel, and labor make the last mile the most costly part of the supply chain — sometimes accounting for over 50% of total delivery costs.


Where Did the Term ‘Last-Mile Delivery’ Come From?

The term originally came from the telecommunications industry, referring to the final stretch of cable connecting homes to the main network. Logistics later adopted it to describe the last leg of product delivery.
Globally, the concept took off with the rise of e-commerce, especially in markets like the U.S., China, and Europe.

While the concept is global, execution varies by region. In developed markets, it involves advanced tracking and fulfillment systems.
In emerging markets like Nigeria, Kenya, or parts of India, delivery involves informal addresses, direct customer communication, and hybrid transport models (bike + foot + car).
Understanding local context is crucial for global logistics players expanding into new regions.



Why It's Crucially Important

Every other part of logistics can be perfect — warehousing, processing, shipping — but if the final delivery fails, that’s all the customer remembers. So understanding and tackling the challenges of final mile logistics is critical.

  • Customers expect better deliveries: a fast, smooth, no-confusion delivery experience. That’s the standard now.
  • One mistake can cost you: missed deliveries hurt trust. And trust is hard to rebuild.
  • Margins depend on the Last-Mile: wasted trips, fuel, and rider time add up fast.


The 5 Key Stages of Last-Mile Delivery

Understanding the full cycle of last-mile delivery helps you spot where problems happen and how a logistics partner steps in. Here’s how it typically works mostly:

1. Order Received

This is where it all begins. The business gets an order online, through WhatsApp, Instagram, a website and other means used.

2. Package Preparation

The item is packed and labelled, usually by the vendor. For bigger brands, this might happen in a fulfilment centre. But for most small businesses, it’s done in their shop or home.

3. Pickup from Business, Fulfillment Center or Pickup Point

This is where the logistics company steps in, and the last mile actually begins. A dispatch rider or delivery personnel picks up the package from the pickup location.

4. Routing & Dispatch

Now the delivery rider, driver or logistics provider plans the routes for efficiency, or if there are many packages, it may need sorting; it might be routed to a local hub first. Usually in this phase, customer availability, traffic, and other conditions are considered.

5. Final Delivery to Customer

The last and most critical step. The item reaches the buyer’s doorstep, office, or any agreed point. For COD (cash on delivery), this is also where payment is made. And confirmation in most cases or proof of delivery is provided. 


Real-World Challenges

Getting the last mile right isn’t easy, especially in developing countries. We handle Last-Mile Deliveries in Nigeria and it’s a dynamic experience altogether. Here’s what logistics services deal with daily:

  • Traffic congestion: A 20-minute trip can stretch to an hour in crowded cities.
  • Poor addressing systems: “After the blue gate, beside the mango tree” isn’t always reliable addressing system and this is common in developing areas.
  • Customer No-shows: Customers who don’t pick their calls, or drop wrong addresses and are difficult to reach.
  • Security risks for Delivery Personnel: Riders and Drivers carrying cash or high-value items need extra protection.
  • Fraud risks for Businesses and customers: Bad actors posing as dispatch riders or drivers can disappear with goods.


What Actually Works

A solid last-mile delivery system focuses on doing the basics right — and doing them every time:

  • Speed + accuracy: Delivering fast only counts when you deliver correctly.
  • Live Tracking or updates: Customers want to see where their item is at any time.
  • Good communication: Communication prevents missed deliveries and reduce friction.
  • Properly Examined Personnel: Delivery agents and riders should be properly vetted and trained.
  • Smart routing: Know the roads. Avoid bottlenecks. Plan ahead.
  • Backup Plans: Delivery agents get sick. Vehicles break. Your system should bounce back fast.


It’s Not Always a Mile

Sometimes that “last mile” is 50 kilometers. Whether it’s a rural road, inter-state trip, or city alleyway, the goal stays the same: get the package to the person — intact and on time.



What’s Fueling Global Improvements in Last-Mile Delivery (Beyond Trends)

what powers lastmile delivery illustration

Companies like Amazon and FedEx pioneered innovations in routing, tracking, and fulfillment. However, certain core foundations must be in place and they’re the real reason last-mile delivery is improving globally.


1. The Rise of a Global Online Economy

More people have internet access. More businesses are online. That means more customers are finding local stores digitally — with Google Maps listings, Instagram stores, or even WhatsApp storefronts.

This is why countries with higher digital adoption rates are seeing higher volumes of local commerce and smoother last-mile execution.

Govts. can put infrastructures in place to improve local trade, however in developing countries, this is still behind but improving. 


2. Better Digital Addressing Systems

Governments and private players are making it easier to find people and places. In the past, deliveries were frustrating because half the addresses weren’t even valid or mapped.

But now we have:
  • Zip/postal code digitization
  • Google Maps & What3Words-style precision tools
  • National ID systems linked to addresses (in some countries)

In places like Nigeria, services like NIPOST digital addressing are slowly improving this space. Without accurate addresses, even the best tech can’t help you deliver faster.


3. Wider Use of Smartphones and Digital Tools

From riders using navigation apps to customers tracking orders in real time — digital adoption is the quiet force behind better Last-Mile delivery experience.

It’s not just logistics tech companies upgrading. Everyday users are more tech-savvy, making the process smoother across the board.


4. Improved Infrastructure (Soft and Hard)

In developing areas, physical infrastructure like roads is a major challenge, but still we're seeing small improvements. In Nigeria some local roads are being constructed.

Governments must go beyond; we often think of roads and highways, but "infrastructure" also means payment systems, digital maps, and logistics APIs. Countries improving these layers are creating a natural ecosystem for last-mile innovation to thrive.


Who Should Care?

If your business depends on delivery — whether you sell fashion, food, medicine, or electronics — this is your frontline. Customers don’t forgive bad delivery. And they rarely give second chances.


Small brands can:

  • Partner with reliable third-party logistics providers
  • Use flexible pickup and delivery systems (e.g., WhatsApp orders, local riders)
  • Offer same-day or next-day delivery in smaller zones
  • Prioritize communication, transparency, and speed
Customers remember a smooth delivery experiences, not just the brand name.


Global Trends in Last-Mile Delivery

From AI-based route planning to eco-friendly electric bikes, last-mile innovations are shaping the future of logistics. Leading brands now use smart lockers, micro-hubs, and predictive delivery models to speed things up and cut costs.



How to Improve Your Last-Mile for Businesses and Couriers

  • Map your customer hotspots and create delivery zones.
  • Use tracking tools that send SMS/email updates.
  • Train riders for professionalism and safety.
  • Offer flexible delivery times or rescheduling options.
  • Audit failed deliveries weekly — and fix the causes.


The Bottom Line

Last-mile delivery is where customer experience happens. It’s not a backend operation — it’s the moment your business shows up, literally. And getting it right means earning trust, keeping customers, and running a more profitable business.

Want to see how we handle this in Nigeria? Explore the Nigerian Last-Mile Strategy →


Quiz
Quick Check: Last-Mile Delivery
Question 1 of 8Score: 0
Which best defines last-mile delivery?
Why is last-mile often the most expensive part?
In the delivery flow, what typically marks the start of the last-mile?
Which is a global trend for cleaner urban delivery?
What reduces failed deliveries the most?
Which toolset best improves last-mile efficiency?
Which KPI best shows stronger last-mile performance?
For Nigerian SMEs, what is the smarter habit?
Tap an option to check your answer.