supply chain management In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...

and

transportation planning Transportation planning is the process of defining future policies, goals, investments, and spatial planning designs to prepare for future needs to move people and goods to destinations. As practiced today, it is a collaborative process that i ...

, the last mile or last kilometer is the last leg of a journey comprising the movement of

passenger A passenger is a person who travels in a vehicle, but does not bear any responsibility for the tasks required for that vehicle to arrive at its destination or otherwise operate the vehicle, and is not a steward. The vehicles may be bicycles, ...

s and

goods In economics, goods are anything that is good, usually in the sense that it provides welfare or utility to someone. Alan V. Deardorff, 2006. ''Terms Of Trade: Glossary of International Economics'', World Scientific. Online version: Deardorffs ...

from a

transportation hub A transport hub is a place where passengers and cargo are exchanged between vehicles and/or between transport modes. Public transport hubs include railway stations, rapid transit stations, bus stops, tram stops, airports, and ferry slips. ...

to a final destination. The concept of "last mile" was adopted from the

telecommunications industry The telecommunications industry within the sector of information and communication technology comprises all telecommunication/ telephone companies and Internet service providers, and plays a crucial role in the evolution of mobile communications ...

, which faced difficulty connecting individual homes to the main telecommunications network. Similarly, in supply chain management, the last mile describes the

logistical Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logi ...

challenges at the last phase of transportation getting people and packages from hubs to their final destinations. Last-mile delivery is an increasingly studied field as the number of

business-to-consumer Direct-to-consumer (DTC or D2C) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or middlemen. Direct-to-consumer sales are usually transa ...

(b2c) deliveries grow, especially from

e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...

companies in

freight transport Freight transport, also referred to as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been exte ...

ation, and

ride-sharing Carpooling is the sharing of car journeys so that more than one person travels in a car, and prevents the need for others to have to drive to a location themselves. Carpooling is considered a Demand-Responsive Transport (DRT) service. By hav ...

companies in personal transportation. Some challenges of last-mile delivery include minimizing cost, ensuring transparency, increasing efficiency, and improving infrastructure.

History

"Last mile" was originally used in the telecommunications industry to describe the difficulty of connecting end users' homes and businesses to the main telecommunication network. The last "mile" of cable or wire is only used by one customer. Therefore, the cost of installing and maintaining this infrastructure can only be amortized over one subscriber, compared to many customers in the main "trunks" of the network. In

the last mile describes a similar problem for transporting either people or freight. In freight networks, parcels can be delivered to a central hub efficiently via ship, train or other means, but they must then be loaded into smaller vehicles for delivery to individual customers. In transportation networks, "last mile" describes the rising marginal cost of getting people from a transportation hub such as an airport or train station to their final destination. In 2018,

Amazon Amazon most often refers to: * Amazon River, in South America * Amazon rainforest, a rainforest covering most of the Amazon basin * Amazon (company), an American multinational technology company * Amazons, a tribe of female warriors in Greek myth ...

developed a comprehensive logistics network by employing thousands of last-mile delivery vehicles. This had notable effects on the logistics and retail industry, and introduced a new type of competition to both industries.

FedEX FedEx Corporation, originally known as Federal Express Corporation, is an American Multinational corporation, multinational Conglomerate (company), conglomerate holding company specializing in Package delivery, transportation, e-commerce, and ...

CEO Fred Smith was quoted, "We basically compete in an ecosphere that’s got five entities in it. There’s

UPS UPS most commonly refers to: * Uninterruptible power supply, a device which provides continuous power to electronics * United Parcel Service, an American courier company UPS or ups may also refer to: Companies and organizations United Parcel S ...

, there’s

DHL DHL (originally named after founders Dalsey, Hillblom and Lynn) is a multinational Import-Export Expert Company, founded in the United States and headquartered in Bonn, Germany. It provides courier, package delivery, and express mail service, ...

, there’s the

U.S. Postal Service The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or simply the Postal Service, is an independent agencies of the United States government, independent agency of the executive branch of the federal governmen ...

, and now, increasingly, there’s Amazon."

Usage in distribution networks

Transporting goods via freight rail networks and container ships is often the most efficient and cost-effective manner of shipping. However, when goods arrive at a high-capacity

freight station A goods station (also known as a goods yard or goods depot) or freight station is, in the widest sense, a railway station where, either exclusively or predominantly, goods (or freight), such as merchandise, parcels, and manufactured items, are lo ...

or port, they must then be transported to their final destination. This last leg of the supply chain is often less efficient, comprising up to 53% of the total cost to move goods. This has become known as the "last mile problem". The last mile problem can also include the challenge of making deliveries in urban areas. Deliveries to retail stores, restaurants, and other merchants in a central business district often contribute to congestion and safety problems. A related last mile problem is the transportation of goods to areas in need of humanitarian relief. Aid supplies are sometimes able to reach a central transportation hub in an affected area but cannot be distributed due to damage caused by a natural disaster or a lack of infrastructure. One challenge faced in last-mile delivery is unattended packages. Shipping companies, like

FedEx FedEx Corporation, originally known as Federal Express Corporation, is an American Multinational corporation, multinational Conglomerate (company), conglomerate holding company specializing in Package delivery, transportation, e-commerce, and ...

USPS The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or simply the Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal serv ...

and others, leave a parcel unattended at a business or home which exposes the item(s) to weather, and the chance of theft by "porch pirates" (a person who steals packages off of customers' porches or front door areas). One solution to this problem is setting up lockers in urban centers.

in the United States has deployed lockers where customers can pick up packages rather than them being left at their home. This protects them from theft and damage as well as allowing companies to deliver to one location, rather than a number of individual homes or businesses. Similarly, in Taiwan, some online vendors offer the option of delivery to a convenience store of the customer's choice, for pickup from the store by the customer. Not only does this reduce the chance of theft and consolidate packages but also payment of the purchase at the store may also be offered. To reduce cost retailers have researched using autonomous vehicles to deliver packages. US-based

and China-based

Alibaba Ali Baba is a character from the folk tale "Ali Baba and the Forty Thieves". Alibaba Group is a Chinese multinational internet technology company. Ali Baba or Alibaba may also refer to: Arts and entertainment Films * ''Ali Baba and the Forty T ...

have researched deploying drones for delivering goods to consumers. Europe, Germany, Britain, and Poland have experimented with services that provide automated parcel delivery.

Usage in transportation networks

"Last mile" also describes the difficulty in getting people from a

, especially railway stations, bus depots, and ferry berths, to their final destination. When users have difficulty getting from their starting location to a transportation network, the scenario may alternatively be known as the "first-mile problem". In the United States, land-use patterns have moved jobs and people to lower-density suburbs that are often not within

walking distance "Walking Distance" is episode five of the American television series ''The Twilight Zone''. It originally aired on October 30, 1959. The episode was listed as the ninth best episode in the history of ''The Twilight Zone'' by ''Time'' magazine. ...

of existing

public transportation Public transport (also known as public transit, mass transit, or simply transit) are forms of transport available to the general public. It typically uses a fixed schedule, route and charges a fixed fare. There is no rigid definition of whi ...

options. Therefore, transit use in these areas is often less practical. Critics claim this promotes a reliance on cars, which results in more traffic congestion, pollution, and

urban sprawl Urban sprawl (also known as suburban sprawl or urban encroachment) is defined as "the spreading of urban developments (such as houses and shopping centers) on undeveloped land near a city". Urban sprawl has been described as the unrestricted ...

. Solutions to the last mile problem in public transit have included the use of feeder buses, bicycling infrastructure, and

urban planning Urban planning (also called city planning in some contexts) is the process of developing and designing land use and the built environment, including air, water, and the infrastructure passing into and out of urban areas, such as transportatio ...

reform. Other methods of alleviating the last mile problem such as

bicycle sharing system A bicycle-sharing system, bike share program, public bicycle scheme, or public bike share (PBS) scheme, is a shared transport service where bicycles are available for shared use by individuals at low cost. The programmes themselves include bo ...

car sharing Carsharing or car sharing (AU, NZ, CA, TH, & US) or car clubs (UK) is a model of car rental where people rent cars for short periods of time, often by the hour. It differs from traditional car rental in that the owners of the cars are often pr ...

programs, pod cars (

personal rapid transit Personal rapid transit (PRT), also referred to as podcars or guided/railed taxis, is a public transport mode featuring a network of specially built guideways on which ride small automated vehicles that carry few (generally less than 6) passenge ...

), and motorized shoes have been proposed with varying degrees of adoption. Late in 2015, the

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational corporation, multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. T ...

received a patent for a " self-propelled unicycle engageable with vehicle", which is intended as a last mile commuter solution. Bicycle sharing programs have been successfully implemented in Europe and Asia, and are beginning to be implemented in North America. Starting in late 2017, micro-mobility services that provide shared vehicles such as dockless electric kick scooters or electric-assist bikes entered the marketplace.

Dual-mode vehicle A dual-mode vehicle (DMV) is a vehicle that can operate on conventional road surfaces as well as a Track (rail transport), railway track or a dedicated track known as a guideway. The development of these vehicles started together with personal ...

s, which can operate on infrastructure and outside of infrastructure, are also considered as a solution to the first mile and last mile problem. The same dual-mode vehicle can make the journey to a station and from the station on using infrastructure.

The last mile problem

The last mile problem refers to last mile being the most expensive stage of the entire logistics journey. In fact, it accounts for 53% of total delivery costs. The factors for the high costs of last mile delivery are numerous:Why Is Last-Mile Delivery Expensive + 4 Ways To Cut Costs https://ufleet.io/blog/why-is-last-mile-delivery-expensive * Dense urban areas lead to more stops and navigation challenges. * The surge in

increases small-scale delivery expenses. * Customer expectations for rapid deliveries add pressure for costly express options. * Maintaining a skilled delivery workforce. * Rising fuel prices, vehicle maintenance. The last mile problem is exacerbated in rural areas due to dispersed populations and lower demand. The last mile problem is usually addressed by route optimization methods that lead to reduced mileage, fuel consumption and working hours. Businesses in the last mile sector can either optimize routes manually or use a delivery management technology platform.

Last mile technology platforms

Due in part to demand on retailers and product manufacturers to provide expedited (same and next day) deliveries, tech-enabled last mile technology platforms have emerged. Increased demand for last-mile fulfillment has put pressure on shippers to manage many types of delivery companies, which range from traditional parcel carriers to couriers, to on-demand service providers that execute an "

Uber Uber Technologies, Inc. is an American multinational transportation company that provides Ridesharing company, ride-hailing services, courier services, food delivery, and freight transport. It is headquartered in San Francisco, California, a ...

for delivery" model utilizing contractors. Small

delivery robot A delivery robot is an autonomous robot that provides "Last mile (transportation), last mile" delivery services. An operator may monitor and take control of the robot remotely in certain situations that the robot cannot resolve by itself such as w ...

s may also be used to perform last-mile delivery of small packages such as food and groceries.

References