Last-Mile Delivery: 5 Challenges and Effective Solutions

17/07/2026
15:17

reading time : 2 min

Lucie Monnot

Content Marketing Manager

Last-mile delivery is today one of the biggest challenges in logistics. Companies need to understand how to be — or remain — competitive on this strategic front. Here is everything you need to know!

Last-mile delivery: definition

The concept of last-mile delivery emerged alongside the rapid growth of e-commerce. The “last mile” represents the final kilometers a parcel travels to reach its recipient. It is one of the most costly delivery services — accounting for around 25 to 30% of the total shipping cost — since the expenses are no longer shared with other parcels.

Extremely complex to manage, last-mile delivery takes into account both the delivery of the goods and the availability of the recipient to receive their parcel. This concept does not include letterbox delivery.

Today, many logistics professionals seek to optimize this final link in the chain — primarily because urban centers are increasingly congested, but also because rural areas require covering long distances to reach the recipient. Logistics players want to meet new challenges by gaining efficiency and speed while reducing environmental impacts and costs.

Last-mile delivery: the challenges

With the increase in e-commerce sales — particularly linked to the Covid-19 health crisis — consumer demands and expectations have evolved significantly. Consumers are seeking fast and accessible delivery options. Today, most e-retailers adapt to these demands, but not without consequences. What are the real challenges of the last mile?

Economic challenges

Why is last-mile delivery one of the most costly parts of the total logistics chain? Two situations emerge:

The increase in the number of deliveries: as noted above, consumer habits are changing with a rise in online purchases. Customer demands are pushing e-commerce sites to offer ever more high-performing services (speed and personalization of orders), leading to higher costs for the e-retailer. For example, express delivery within 24/48 hours requires the installation of infrastructure capable of delivering orders in record time. Just like conventional e-commerce players, online grocery shopping has grown strongly in recent years. The food sector has also developed its own logistics with a traceability system. An ERP is often used to track the entire life cycle of a product (batch number, use-by date, best-before date, storage temperature, purchase, sale, delivery). By connecting it with delivery provider software, all exchanges are handled end-to-end, through to the final delivery.
Deliveries that can be problematic: during parcel delivery, the carrier may encounter numerous issues on the road — delays, traffic, cancellations, complex routes, lost parcels, and so on — not to mention the rising cost of delivery as a parcel approaches its recipient.

Logistical challenges

The last mile also generates logistical problems that are complex for the company to manage. Various constraints can be added to the delivery of an order: the customer’s location, the various stops the delivery driver must make, traffic flow, order tracking difficulties, stockouts, and so on.

The growing increase in e-commerce orders requires companies to have more storage space and to process data at a much faster rate. To gain efficiency, organizations must invest in automation projects.

Ecological challenges

It goes without saying that the last mile has a significant environmental impact. An increase in orders and deliveries inevitably affects the number of vehicles on the roads and therefore increases pollution. It has been noted that the parcel delivery phase is responsible for 25% of greenhouse gas emissions in cities. The rising number of delivery vehicles (cars, vans, trucks) consequently contributes to road traffic congestion. Some, in order to make deliveries within 24/48 hours, even take alternative routes that are considerably longer and more polluting.

Last-mile delivery: the solutions

As we have seen, delivery flows are not about to decrease — quite the contrary. The e-commerce sector is in perpetual evolution, with annual growth of 8.5%. What solutions can professionals implement to optimize last-mile logistics?

Using a delivery optimization tool

There are now delivery optimization tools that enable you to establish an effective logistics strategy — controlling your transport costs through optimized route planning, enhancing service quality, and keeping customers informed of their parcel’s progress. These software solutions save time by optimizing route plans and maximizing truck loading rates.

Discover our web application TourSolver — a SaaS solution for logistics and last-mile route optimization. It creates profitable and realistic route plans, taking into account the constraints of your business: volume of parcels to deliver, geographic constraints, working hours, and so on.

Offering different time slots and delivery points

To satisfy customer demands, offering a choice of delivery time is a genuine asset for your company. The widespread adoption of remote working and flexible schedules in certain companies is leading more and more customers to choose specific delivery time slots. It is worth knowing that a recipient who is absent on the day of delivery is very costly for your company. This is why it is beneficial to implement this solution to simultaneously reduce the number of vehicles on the roads and CO2 emissions.

To minimize the cost of the last mile, you can implement a choice of delivery point system:

Relay points (Mondial Relay, Chrono Relais, etc.): in addition to reducing delivery costs, decreasing the number of stops, and lowering CO2 emissions for the company, the recipient can collect their parcel on the day of their choice at the time they prefer — removing the constraint of being present at home.
Drive-through and in-store collection: this delivery service is very frequently used by grocery stores. Seen as a time-saver by the customer, they place an order online and collect it at one of the drive-through points available near them. For the company, setting up this collection service is cost-effective, as it only requires the fitting out of a warehouse and logistics management.
Locker delivery: the customer collects their order from an automated locker where they have chosen to receive their parcel. From a financial perspective, this system is advantageous for the company, as it requires few operating costs.

Pooling flows

There is a logistics method called “cross-docking” that involves preparing orders from a single platform that handles sorting. In addition to optimizing last-mile delivery through better control of shipping and production dates, the company does not need to maintain a warehouse or delivery vehicles. Financially, this system enables savings across numerous areas (premises, vehicles, fuel, etc.). It is also possible to pool the use of a single vehicle for the distribution of products in the same category.

Thinking about eco-friendly delivery

Last-mile logistics is highly polluting, which is why optimizing delivery routes using web-based solutions can reduce greenhouse gas emissions. For greener delivery, you can replace fossil fuel vehicles with hybrid or electric vehicles. Also consider optimizing the size of vehicles based on delivery routes to avoid driving a half-empty truck.

Thinking about communication and real-time tracking

An increasing number of features are available in delivery optimization tools that enable customers to be kept informed of their parcel’s journey. This can involve sending an email or SMS to notify the recipient and offer them the option of changing the delivery date if they are not at home. This system reduces the risk of customer absence while increasing their satisfaction.

At Nomadia, we offer various solutions for your company and your mobile teams — whether for your logistics services, sales forces, or technicians.

Do not hesitate to contact our experts to ask your questions or request a free demonstration of our solutions.

Frequently Asked Questions

FAQ – The Most Frequently Asked Questions About Nomadia

Why Choose Nomadia?

As France’s leading publisher of Smart Mobility SaaS solutions, Nomadia supports more than 175,000 field professionals every day. Our solutions are easy to use, quick to deploy, and deliver significant and immediate return on investment.

Drawing on the expertise of both a software publisher-integrator and a consulting firm, Nomadia’s teams provide tailored support, from data consulting to the deployment of mobile devices. Finally, our technical support team is available 24/7 to assist you.

Who Are Nomadia Solutions Designed For?

Nomadia solutions support the digital transformation of all mobile professionals: field sales representatives, delivery drivers, technicians, auditors, healthcare workers, inspectors, service providers, security patrol officers, experts, and more.

Whether for SMEs or large enterprises, our solutions adapt to businesses of all sizes and across all industries.

How Much Does It Cost?

Nomadia Delivery offers transparent and flexible pricing, which primarily depends on the number of users (for example, planners and dispatchers) rather than a fixed cost per parcel.

Thanks to this model, you can control your delivery costs based on the number of resources (users) involved in route management, providing great flexibility to adjust your subscription according to the size of your fleet and your operational needs.

Is It Compatible with My Current ERP System?

Yes! Nomadia Delivery has been designed to integrate quickly and easily into your existing environment thanks to our powerful and secure APIs. Our solution is compatible with most ERP systems on the market. API integration enables the automatic synchronization of your transport orders, customer orders, and customer information, ensuring smooth and error-free delivery tracking. The solution also offers user-friendly import capabilities with data validation controls, as well as export options in multiple customizable formats.

Is It Suitable for Our Delivery Volume?

Yes, Nomadia Delivery is ideal for companies that manage a high volume of deliveries and want to optimize their routes, create balanced territories for their drivers, and ensure precise tracking of every parcel. Nomadia Delivery adapts to fleets of all sizes!

Can Multiple Warehouses or Depots Be Managed?

Yes, our solution allows you to manage multiple warehouses or depots. It centralizes data and optimizes routes or service operations for each of them.

Is There a Limit to the Number of Stops in Route Optimizations?

No, there is no strict limit to the number of stops in route optimizations. Our solution can handle large volumes of stops and quickly calculate optimized routes.

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