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 delivery from that hub to the customer's home or office is considered the last mile.
This step is visible and can make or break the entire customer experience.
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Last-Mile Delivery is expensive because it involves multiple small trips to individual addresses. Factors like traffic, failed deliveries, bad roads, fuel, and labor make the last mile the most costly part of the supply chain, sometimes accounting for upto 50% of total delivery costs.
Where Did the Term ‘Last-Mile’ Come From?
The term originally came from the telecommunications industry, referring to the final stretch of cable connecting homes to the main network. The Logistics industry later adopted it to describe the last leg of product delivery.Globally, the concept of Last-mile or Final mile delivery 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.
~ Samuel Asingba | Peng Logistics
Why It Is A Very Very Important Step
Every other part of the logistics process can be perfect; warehousing, processing, shipping — but if the final delivery falls below quality, that’s all the customer may remember. So understanding and tackling the challenges that comes with 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 deadlines hurt trust. And trust is hard to rebuild.
- Margins depend on the Last-Mile: Failed or returned deliveries leads to extra charges.
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
The business gets an order; offline, online, through WhatsApp, Instagram, a website and other means used.2. Package Preparation
The item is then packed and labelled, usually by the vendor for Local Businesses. For e-commerce brands, this might happen in a fulfilment centre.3. Pickup from Business, Fulfillment Center or Pickup Point
This is where the logistics company steps in, and the last mile really begins. A dispatch rider or delivery personnel picks up the package from the pickup location.4. Routing & Dispatch
The delivery rider, driver or logistics provider plans the routes for efficiency. 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) orders, this is also where payment is made. And confirmation in most cases or proof of delivery is provided.The Real Challenges of the Final Mile
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 we 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 a reliable addressing system but this is very 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 in mostly developing countries needs to be watchful.
- Fraud risks for Businesses and customers: Bad actors posing as dispatch riders or drivers can disappear with goods.
What We've Seen Actually Work
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 & Back-up plans: Know the roads, be ready for emergencies and Plan ahead.
It’s Not Always a Mile
Sometimes that “last mile” is 50 kilometers. But whether it’s a rural area or popular area in the city, the goal stays the same: get the package to the person, intact and on time.
Read Also: Strategies to Boosting Last-Mile Delivery Efficiency in 2025
What’s Fueling Global Improvements in Last-Mile Delivery
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.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.- Zip/postal code digitization
- Google Maps & What3Words-style precision tools
- National ID systems linked to addresses (in some countries)
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.4. Improved Infrastructure (Soft and Hard)
In developing countries, physical infrastructure like roads is a major challenge, but we're seeing small improvements.However, Governments must go beyond; we often think of roads and highways when we say infrastructure. 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, then 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
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.
The Bottom Line
Last-mile delivery is where customer experience happens. 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 our Last-Mile Service and Strategy →
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