Last-mile delivery: how to combine performance, profitability and environmental responsibility
Last-mile delivery is central to the supply chain. It concentrates a large part of the costs, constraints and customer expectations. The rise of e-commerce, the density of urban centres and regulatory changes are further increasing the pressure on carriers.
In this context, companies must adapt their methods, optimize their operations and reduce their environmental impact. The objective is simple: to deliver quickly, reliably and with a controlled cost, without neglecting the challenges related to mobility and sustainability.
This article looks at the main challenges and levers for sustainably improving last-mile performance.
In an environment where customer demand is intensifying and cities are becoming denser, last-mile delivery represents a real strategic challenge. It is the shortest segment in terms of distance, but also the longest in terms of time spent and resources mobilized. It can account for up to 50% of the total logistics cost, in particular because of fragmented routes, frequent stops, and the hazards associated with urban traffic.
The rise in speed standards (D+1 delivery, precise slots, real-time updates) is putting a lot of pressure on field teams. At the same time, companies must integrate regulatory constraints related to air quality, low emission zones and the gradual restriction of polluting vehicles.
Mastery of the latter segment is therefore at the heart of competitiveness: it conditions customer satisfaction, operational profitability and the ability to meet environmental commitments.
Last-mile delivery faces many challenges that need to be taken into account in order to be able to offer suitable solutions.
Traffic jams, multiple stops and unsuccessful delivery attempts mechanically increase delivery costs. Inefficient route management limits productivity and weakens carriers’ margins.
Consumers expect full visibility of their packages: real-time tracking, notifications, strict adherence to the time slot. The slightest flaw in delivery traceability leads to complaints, new deliveries and therefore additional costs for companies.
Urban logistics is subject to increasingly restrictive rules : limited time slots, driving bans for certain vehicles, environmental regulations. Organizations need to adapt their fleets, parking strategies, and routes.
Urban transport generates a high proportion of emissions related to professional mobility. The need to reduce the carbon footprint implies reviewing practices, optimising routes and accurately assessing the CO₂ reduction in transport.
The last mile is marked by the variability of volumes, the density of delivery points and the complexity of customer interactions. It therefore requires a new agility that can only be achieved through advanced optimization.
Technological levers to optimize last-mile delivery
Digital developments now make it possible to professionalize and automate field operations. Several technologies are profoundly transforming last-mile delivery, starting with route optimization and planning software.
SaaS solutions like Nomadia Delivery, dedicated to last-mile optimization and operations traceability, offer a complete view of activities. Its role is not limited to planning, it also includes:
- Optimization of routes integrating operational and urban constraints;
- The mobile application to support delivery people (navigation, proof of delivery, information feedback);
- Real-time visualization of the fleet and parcels;
- Contingency management, dynamic replanning and prioritization of tasks;
- Dashboards to analyze performance and detect areas for optimization.
The approach aims to reduce delivery costs, improve customer satisfaction and support companies in their urban mobility and operational efficiency challenges.
Real-time tracking tools are also very useful for optimizing last-mile delivery. Thanks to mobile applications and on-board sensors, companies benefit from accurate tracking of drivers, parcels and field incidents. This logistics SaaS solution improves the quality of service while streamlining communication between planners and delivery people.
Data analysis makes it possible to identify bottlenecks, measure downtime, optimize routes and improve volume forecasting. This allows companies to transform their processes to gain operational efficiency.
The quality of the customer relationship depends very strongly on the smooth running of the last-mile delivery. There are several actions that can improve this experience while increasing internal efficiency: Providing visibility throughout the process is essential. The customer must know the progress of his delivery and have a reliable time slot. Optimising routes according to sectors or deadlines reduces delays and limits contingencies. This improves the accuracy of the commitments made.
Then adaptability plays an important role and is more than necessary: dynamic replanning, emergency management, real-time adjustments. Modern tools facilitate this flexibility. Finally, it is essential to have consistency between the promise and the execution : delivery made on time, in the right place, with clear information.
Environmental constraints and the transformation of urban areas are pushing companies to review their organization for better urban logistics. To move towards a more sustainable model, several axes can be activated:
The first step is to limit unnecessary journeys. Route optimization plays a key role here: better allocation of resources reduces distances traveled and thus transport-related emissions. Tools such as Nomadia Delivery contribute directly to this approach by offering route plans adapted to local constraints and actual volumes.
2. Adapting modes of transport
The transition to cleaner solutions is part of the necessary evolutions. The use of electric vehicles, cargo bikes or hybrid fleets facilitates access to city centres while reducing the environmental impact. These modes of transport are often combined with fine planning to remain efficient.
3. Develop collaborative models
The pooling of certain flows, the use of urban hubs or the use of relay points make it possible to consolidate deliveries and reduce the load in the city centre. These approaches improve fluidity while reducing costs.
Data from the field make it possible to identify concrete levers for improvement: vehicle occupancy rate, densest areas, sensitive points. This analysis facilitates the implementation of targeted actions and measures the effects on performance and environmental impact.
To support these transformations, companies must have tools capable of simultaneously managing economic, operational and regulatory constraints. Solutions like Nomadia Delivery are part of this logic by helping organizations reconcile performance, cost control and reduction of their carbon footprint.
Rethinking last-mile delivery is no longer an option: it is a strategic necessity for companies wishing to combine performance, profitability and environmental commitment. By combining route optimization, advanced monitoring tools, data analytics and adapted mobility solutions, organizations are transforming their urban operations and strengthening their competitiveness in an increasingly demanding environment. Nomadia accompanies you in this transition.