Optimizing Last-Mile Delivery: Strategies for Overcoming Challenges

Solutions and Strategies for Resolving Last-Mile Delivery Challenges

Are you tired of not being able to deliver orders on time and losing out on customers? Well, here are some efficient strategies for overcoming last-mile delivery challenges.

The necessity for last-mile delivery has increased dramatically due to the growing demand for on-demand delivery services. Last-mile delivery, which is the last phase of the supply chain process, has encountered a unique set of challenges.

We must confront these challenges head-on by leveraging modern solutions and technology. After all, last-mile delivery represents the last point of contact in the supply chain process. Consistent success at this point enhances a brand’s reputation and client loyalty.

We have written this article to examine the challenges associated with last-mile delivery and successful solutions to mitigate them.

Why is Last-Mile Plagued with Challenges?

Last-mile delivery has become a point of concern ever since the rise in order volume and the need for quick deliveries. Transporting goods from a distribution center to their ultimate destination, which is frequently a customer’s doorstep, is this crucial stage that has drawn attention from both customers and businesses. There are several reasons for the growing obsession with last-mile delivery.

As a result of this shift in viewpoint, delivery companies are under increased strain due to the increased number of packages. Firstly, the explosive growth of e-commerce has completely changed how people purchase, with a never-before-seen level of consumer adoption of online retail.

Businesses are under great pressure to provide efficient and timely last-mile deliveries because customers’ expectations for swift service have grown. Most are unwilling to settle for anything less than quick same-day, 24-hour, or next-day deliveries.

All of these components show how critical it is to create new strategies to address the growing complexity of last-mile delivery. This will further the search for effective and long-lasting solutions.

Now, let’s explore the challenges that last-mile delivery businesses suffer from.

6 Common Route Planning Challenges

Some Prominent Last-Mile Delivery Challenges

Last-mile logistics aims to deliver packages to customers as soon as possible. Consumers want delivery to be quick and free.

The difficulty? Due to the expectation to deliver more volume frequently, the supply chain’s last leg requires more resource use, which costs them heavily. Plus, it takes them a lot of time to plan even the smallest task, like allocating the orders to the riders. Delivery costs increase with every challenge.

Here are some pertinent challenges we are discussing in detail…

Challenge#1 Inefficient Route Planning

Finding the best possible route for a delivery driver to follow while traveling from the warehouse to the destination for product delivery is a critical aspect of last-mile delivery. Picking up most random and inefficient routes at this stage leads not only to delayed deliveries but also increases the retailer’s costs.

A last-mile delivery route optimization solution is key to determining the shortest and most cost-efficient route for deliveries. Vehicle routing optimization is an extremely complex problem that has challenged scientists and mathematicians over the years.

Machine learning and artificial intelligence algorithms inherited in modern route optimisation software have stepped in to ease the problem. In addition, analytics technology helps spot trends so routing adjustments can be made before problems become unmanageable.

Challenge#2 High Cost of Delivery

Despite being the smallest delivery route, last-mile delivery is also the most costly for the company as it entails only delivering goods to the final customer. Integrating additional infrastructure, like hiring more riders and managing more inventory due to a rise in demand, can add to costs.

In addition, unanticipated costs like order cancellations or delays may also occur during delivery.

Regretfully, charging the consumer for these expenses may not be a good idea. If unexpected costs occur, customers will likely abandon their purchasing basket. Thus, the wisest action would be to reduce and defray these expenses elsewhere.

Challenge#3 Lack of Transparency in Last-mile Delivery

Poor visibility is probably one of the biggest obstacles to last-mile delivery. Dispatchers are often not aware of the delivery process, which causes bottlenecks that hinder on-time dispatch. Fortunately, it’s also one of the easiest problems to resolve.

You can implement visibility technologies like dispatching platforms that offer updates on every process or that let you talk to drivers in real time. Additionally, customers will value having real-time shipment tracking available rather than relying on tracking codes that are not updated frequently.

Biggest Challenge with Last Mile

Challenge#4 Use of Outdated Technology

These days, it may seem unlikely that logistics still employ antiquated technology to orchestrate their dispatching and delivery process. But to your surprise, a vast number of logistics firms continue to be reluctant to adopt cutting-edge technologies and are still treading with old-fashioned Excel and manual methods to deploy their resources. Even when they use contemporary technology, it’s usually limited to warehouse management. As a result, customers and chances are lost.

It’s an easy fix. Introduce specialized last mile technology that digitizes critical logistical processes, including dispatching, vehicle allocation and tracking, expected delivery time tracking, delivery tracking, and route planning.

Challenge#5 Increasing Competition and Customer Expectation

Although last-mile deliveries are complicated, the transportation sector is becoming more competitive, and customers have higher expectations. Due to the growth of eCommerce and large delivery providers, customers now anticipate quick and dependable delivery alternatives.

To remain competitive in the market, delivery companies must constantly adapt to shifting demands. To attract clients, they are offering innovative services like hassle-free returns, flexible delivery windows, same-day or next-day delivery alternatives, and real-time tracking.

Challenge#6 Delayed Delivery

Delivery delays are one of the biggest problems shipping and delivery companies face. When companies miss deadlines, they incur expenses. Delivery delays undermine a company’s bottom line, increase customer turnover, and harm a brand’s reputation.

As a result, to make deliveries on time, you need a same-day delivery strategy. The solution is to create a system for route planning and ensure transparent and easy communication at all levels.

Solution to Make The Last Mile Problems Go Away

Here are key, effective strategies that can help businesses gain a competitive advantage in combating common last-mile delivery challenges.

1. Improve customer-warehouse proximity

Ideally, the final warehouse or distribution center should be situated closer to the customers. Long-term financial savings are achieved, and delivery times, expenses, and fuel consumption are reduced. The last-mile issue would be lessened if the warehouse was close to the areas where most orders originate. It may also serve as a customer pick-up or drop-off location. This also makes inventory management more efficient and less time-consuming, raising warehouse operations’ return on investment (ROI).

2. Invest in technology for delivery optimization

New technologies like TrackoMile’s last-mile delivery software can analyze data in real time, facilitating process changes and improving decision-making. These technologies combine artificial intelligence (AI) and machine learning-based solutions for driver allocation and route optimisation. As a result, businesses can increase potential return on investment (ROI), save overall operating costs, shorten supply cycle times, and simultaneously plan highly efficient routes for multiple addresses.

3. Optimize Route Planning

Planning a route can significantly reduce delivery times. The route optimisation software can automatically schedule routes based on historical trips to suggest the most effective routes and consider variables like time, location, vehicle capacity, and traffic.

Dynamic delivery routing is made feasible by instantly notifying the delivery driver of any traffic updates that may impact schedules.

Route Optimisation Solves Multiple Last Mile Challenges

4. Communicate with customers in real-time

Modern consumers expect flexible delivery options because they are not always home to accept their orders. Throughout the delivery process, customers should receive regular alerts about the status of their package. This helps both the customer and the driver because it guarantees the customer’s availability at the time of delivery.

TrackoMile shares dynamic ETA with consumers through messages or emails and also offers multi-format ePOD for faster delivery.

5. Implement an effective real-time delivery tracking system

Until the package arrives at its destination, businesses and customers can stay informed about its progress using real-time delivery tracking. Businesses can communicate real-time delivery information by using tracking.

Issues with the customer experience and business operations include missed deadlines, poor route optimization, incomplete delivery documentation, and the incapacity to accept contactless payments. By implementing a cutting-edge solution to optimise operations and maximise efficiency, the largest threats to logistics operations can be resolved.

6. Optimise Order Scheduling

Poorly scheduled deliveries cause delays in transit and directly impact customer satisfaction. Inefficient routes further add to the time and cost of deliveries.

Dispatch management software improves dynamic scheduling for day-to-day dispatch operations and enables delivery agents to meet promised SLAs. Optimised route planning enhances FADR, fulfilling more orders and boosting daily delivery volumes.

The software automates scheduling and routing workflows to streamline on-demand deliveries. It helps dispatchers create and assess smart delivery clusters to avoid overlapping territories and delivery routes, improving last-mile delivery efficiency and productivity.


Businesses should stay consistent by delivering last-mile deliveries on schedule. Increasing delivery operations’ dependability and speed contribute to increased client loyalty and satisfaction.

Improving delivery management is an ongoing effort, and businesses should aim for steady operational efficiency. TrackoMile’s last-mile delivery software boosts last-mile delivery operations and increases delivery productivity.

Do you want to improve the last-mile delivery you provide? To find out more, contact us.

Strategies for Improving Last Mile Experience


  • What are the issues with the last-mile delivery service?

    Multiple issues exist with last-mile delivery services, such as high operational costs, time-consuming use of outdated technologies, inefficient route planning, and real-time visibility. These issues cause multiple hiccups in the scalability of delivery operations and hinder the delivery of a quality experience to customers.

  • Why is last-mile delivery considered difficult?

    Last-mile delivery is considered difficult because it requires the integration of advanced technologies, the right strategies, and a professional workforce to manage the requirements and demands of last-mile operations. Most businesses cannot match the above prerequisites and consider last-mile delivery challenging to manage.

  • Is the last-mile delivery business profitable?

    Yes, the last-mile delivery business is profitable because of the rise in demand for online shopping and the change in customer demands. Multiple retailers are switching toward the online business ecosystem, requiring last-mile delivery software to handle the supply chain's most expensive and time-consuming segment.

  • How to optimize last-mile deliveries?

    Logistics companies can use dedicated route planning and optimization software to streamline and optimize their last-mile deliveries. This software adds automation to the process and helps save fuel costs, which positively impacts the business's bottom line and serves customers well.

  • What are the communication problems in last-mile delivery operations?

    The last-mile delivery operations can encounter multiple communication problems due to the lack of robust last-mile software. You cannot communicate the message to your team in real-time and cannot solve the dynamic issues of your delivery drivers in quick succession.

  • What are the key success factors for last-mile delivery?

    Key success factors for last-mile delivery include efficient route planning using technology, real-time tracking and communication for customer visibility, adaptable delivery options such as time windows and rerouting, robust address verification to ensure accuracy, and a focus on customer satisfaction through secure and reliable delivery methods.

Optimizing Last-Mile Delivery: Strategies for Overcoming Challenges

Tithi Agarwal

Tithi Agarwal is a content writer at TrackoBit. She enjoys writing blogs which are knowledgeable yet fun to read. And when she is not typing away to glory she has her nose buried in books.

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